Budget Updates

Budget 2019

  • Restoration of a 100% tax deduction for interest expenses incurred on loans used to purchase, improve or repair residential property for rental purposes is a positive development for the sector. The removal of the restriction will be effective from 1 January 2019.
  • Although future changes to the current Local Property Tax regime have been heralded, the introduction of a tax deduction for Local Property Tax paid on residential rental properties failed to materialise.
  • An additional €4.6 million will be provided to the Residential Tenancies Board (RTB) in 2019, bringing its allocation to €11.5 million. This increase will help the RTB to enforce rent caps and expand its programme of rental inspections.
  • The Government has also allocated a further €121 million to the Housing Assistance Payment (HAP) scheme to provide an additional 16,760 new tenancies in 2019.
  • The Housing Agency will also receive additional funding of €2.8 million, bringing its funding for 2019 to €10 million. This additional budget reflects the Housing Agency’s expanded role in the delivery of housing supports and services.
  • The Government has committed to a package of measures, with a particular focus on the development of social and affordable housing. This includes the contribution of €1.25 billion towards the construction, acquisition and leasing of 10,000 new social homes in 2019 and the creation of the Serviced Sites Fund to help local authorities deliver 6,000 affordable homes.
  • No increase in the current rates of stamp duty has been announced.
  • The Group A tax-free threshold, which applies primarily to gifts and inheritances from parents to their children, will be increased from €310,000 to €320,000. This increase applies to gifts or inheritances received on or after 10 October 2018.

Budget 2018

  • 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 2017

  • 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

Budget 2016

  • 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