As the 2015 budget proceeds through the Dail this evening, the main points are outlined below. From a pensions perspective, the Minister has confirmed that the pension levy falls to 0.15% next year, and ceases in 2015. Thankfully, tax relief on pension contributions remains at the marginal rate, giving up to 40% relief in 2015. Total expenditure is projected at €50.1 billion for 2015, an increase of €429 million.
As ever, please contact us should you require any further advice on how the budget might affect you.
Budget 2015 – Main Points:
- 1% reduction in top income tax rate to 40%.
- Standard rate income tax band increases by €1,000.
- USC entry threshold increases to €12,000.
- 2% USC rate falls to 1.5%, 4% rate falls to 3.5%.
- New 8% USC rate for incomes over €70,000.
- 11% USC rate for self employed income over €100,000.
- Tax relief on pension contributions remains at the marginal rate.
- Pension levy of 0.15% in 2015, ceasing thereafter.
- DIRT refund scheme for first time buyers savings.
- DIRT remains at 41%.
- 9% VAT rate on the hospitality sector maintained.
- Child benefit increases by €5 per month from 2015.
- €2.2 billion investment in social housing over 3 years.
- Tax relief of 20% on water charges, to a maximum of €500 per annum.
- Home renovation incentive extended to rental properties.
- CGT exemption on property purchase scheme ceases on 31 Dec 2014.
- A range of tax measures to support farmers announced.
- Civil service recruitment embargo to be lifted in 2015.
- Price of 20 cigarettes rises by €0.40 from midnight.
- Corporation tax once again reaffirmed at 12.5%.
- The “double Irish” will be replaced by the “Knowledge Box”!!