Budget 2015 – Summary

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”!!

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