In recent years it seems that most of the budget is leaked in advance, and this year was no exception. For your convenience, we have highlighted the key points of today’s budget in this update.
From a pensions perspective, the state pension will increase by €5 per week from March 2017. Tax relief on pension contributions also remains at 40% for top rate tax payers. First time buyers of new homes will also gain, with an income tax rebate of 5% of the property price, to a maximum of €20,000.
While not quite a giveaway budget, there is certainly something in there for most of us! As ever, please contact us if you have any questions at all about how the budget might affect you.
- Tax rates & income bands remain unchanged
- Tax credit for self employed increased by €400 to €950
- 0.5% cut in each of the 3 lowest USC bands
- DIRT will reduce by 2% each year over the next 4 years (from 41% to 33%)
- New Help to Buy incentive for first time buyers
- Rented residential property interest relief increased from 75% to 80%
- Mortgage interest relief extended to 2020
- €1.2bn in funding for housing, with a goal to deliver 47,000 new social housing units by 2021
- €5 per week increase in the state pension from March 2017
- Capital Gains Tax further reduced to 10% for the sale of a business up to €1 million
- €290 million earmarked to restore civil service pay cuts
- Rent a room tax exemption increased by €2,000 to €14,000
- 800 new Gardai to be recruited in 2017, and 2,400 new teaching posts announced
- Inheritance tax reduced, especially from parents to children, where the threshold increases to €310,000
- Tourism VAT rate of 9% unchanged
- Cigarettes up 50 cents, alcohol & fuel duties unchanged
- A new Sugar Tax by April 2018
- Home Renovation Incentive further extended until 31 December 2018