BUDGET HIGHLIGHTS 2015
We have set out the key points for Budget 2015 below and hope you find it helpful and informative.
Some changes are in store for income tax in 2015.
The higher rate of income tax will be reduced from 41% to 40% and the threshold at which taxpayers enter the top rate band will be increased from €32,800 to €33,800 for single individuals.
USC will also be changing as follows:
– the 2% rate will be reduced to 1.5%;
– the 4% rate will be reduced to 3.5%
– new 8% USC rate for those earning over €70,000 and 11% USC for self-employed income over €100k
– Entry level to USC will be increased to €12,000
WATER CHARGES RELIEF
Income Tax Relief will be available at 20% up to a maximum of €500 per household per year.
The 0.6% rate is being abolished at the end of 2014 and the additional 0.15% will expire at the end of 2015.
The Home Renovation Incentive will be extended to private landlords.
CGT Relief will be removed from January 2015.
First Time Buyers will be eligible for a refund for DIRT on savings used to purchase their home, up to a maximum of 20% of the purchase price.
The farmers’ flat-rate addition is being increased from 5% to 5.2% with effect from 1 January 2015.
CGT retirement relief is being extended to land let for up to 25 years prior to disposal.
There will be no milk quotas in 2015.
Minister Noonan stated that the 12.5% tax rate is “settled policy” and it will not change.
The three year corporation tax relief for start up companies will be extended.
The R&D Credit will be improved by fully phasing out the R&D base year from 1st January 2015.
The “Double Irish” will be abolished by changing Ireland’s residency rules to require all companies registered in Ireland to also be tax resident in Ireland. This will take effect from 1st January 2015 for new companies and there will be a provision for a transition period until 2020 for existing companies.
INDIRECT TAXES & EXCISE DUTIES:
The 9% VAT rate on tourism will be retained.
Duty on a packet of 20 cigarettes will be increased by 40 cents (including VAT) from midnight tonight with a pro rata increase on other tobacco products.