Budget Submissions and Update
Budget Announced October 2017
No change to mortgage interest relief.
Housing Assistance Payment Scheme will increase by €149m.
Funding for homeless services will increase by €18m to more than €116m.
€750m is to be made available for commercial investment in housing finance.
The level of stamp duty on commercial property transactions will rise from 2% to 6% from midnight last night
The vacant site levy will increase from 3% in the first year to 7% in second and subsequent years.
A new house-building entity to boost construction has been announced.
Pre-Letting Expenses available for qualifying expenses up to end of 2021.
The point at which an income earner attracts the higher rate of income tax will rise next year by €750 per annum.
The entry point for single earners will increase from €33,800 to €34,550.
The entry point to USC will remain at €13,000.
The 2.5% USC rate will be reduced to 2% with the ceiling for the new rate increased from €18,772 to €19,372.
The 5% USC rate will be reduced to 4.75%.
A working group will be set up over the coming year to plan the amalgamation of the USC and PRSI over the medium term.
The Earned Income Credit for the self-employed will rise by €200 to €1,150 a year.
Reduction in seven-year period for owners to enjoy full relief from Capital Gains Tax to four years.
Budget Announced 2016
USC entry level increased to €13,000
Rate on income from €0 to €12,012 reduced to 1%
Rate on income from €12,013 to €18,668 reduced to 3%
Rate on income from €18,669 to €70,044 reduced to 5.5%
Rate on income from €70,045 remains at 8%
Increase in tax-free threshold for transfers between
parents and their children, from €225,000 to €280,000
The Home Renovation Incentive is being extended until 31st December 2016.
A revised Capital Gains Tax relief for entrepreneurs is being introduced from 1st January 2016 which will apply a reduced capital gains tax rate of 20% to the disposal in whole or part of a business up to an overall limit of €1 million in chargeable gains.
More information is available on the budget here
• 1% reduction in top income tax rate from 41% to 40%
• The CGT and CAT rates remain unchanged at 33%
• VAT rates unchanged at 9%, 13.5%, 23%
• Standard Rate Tax Band increased by €1,000 (single), €2,000 couple
• USC entry level increased to €12,012
• Water charges tax relief up to €500 at standard rate
• Pension levy .06% will end this year
• Home Renovation Incentive Scheme extended to landlords
• All new Irish incorporated companies will in future be Irish tax resident
• CGT relief for property acquired 7/12/11 – 31/12/2014 will end.
More details on the recent budget can be found here
The IPOA make submissions in respect of the private rental market on a regular basis. Some of the submissions are attached for information.