Budget 2015

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Below is a breakdown of some of the key points from today’s Budget for 2015.

INCOME TAX

  • The Income Tax Band is being increased from 32,800 to 33,800 for income @ 20%
  • The Top Rate of Income Tax is being reduced from 41% to 40%
  • Changes to Universal Social Charge
    • Lower Rate band increased from 10,000 to 12,000
    • The 2nd band increased from 16,000 to 18,000
    • The 2% rate is reduced to 1.5%
    • The 4% rate is reduced to 3.5%
    • A new 8% rate introduced for incomes over 70,000
    • A further new rate of 11% introduced for self employed incomes over 100,000
    • The medical card exemption from the top rate will remain
  • There will be an Income Tax Relief on Water Charges of up to €500.00 per year per household (the maximum tax relief will be 500.00 x 20% = 100.00). This will be done similar to the way tax relief was given on waste disposal.

CAPITAL GAINS TAX

  • The Capital Gains Tax introduced in 2011 will expire on 31/12/2014
  • The Windfall Tax of 80% on development land will be removed from 01/01/2015 and the standard rate of Capital Gains Tax will apply

FARMING

  • The Income Tax exemption for Farm Land leases has been increased by 50% for long term leases.
  • Stamp Duty on agri leases longer than 5 years has been removed
  • Milk Quotas will be abolished from 01/01/2015

VAT

  • Income averaging for farmers is increased from 3 years to 5 years
  • The 9% VAT rate for tourism has been maintained
  • The VAT rate for non registered farmers is to be increased from 5% to 5.2% from 01/01/2015

BACK TO WORK FAMILY DIVIDEND

  • This has been introduced to encourage people back to work. Where a parent returns to work the will retain the child increase portion of their social welfare payment which is €29.80 per child per week for the 1st year and 50% of this payment in the 2nd year.

OTHERS

  • Child Benefit will be increased by €5 per child per month from 01/01/2015 and if funds allow by a further €5 per child from 01/01/2016
  • There will be a 25% Christmas bonus paid out this year to social welfare recipients
  • Social Welfare recipients who receive the fuel allowance will now also receive a €100 water subsidy
  • Cigarettes will be increased by 40cent from tonight
  • The 0.6% pension levy on private pensions will be abolished from 31/12/2014
  • The Home Renovation Scheme has been extended to landlords
  • There will be a Refund of D.I.R.T. on savings  to first time buyers who use their savings to purchase their home up to 2017 up to a maximum of 20% of the house price.

 

This is some of the key points which has been published in todays Budget 2015.

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