An increase of €750 in the income tax standard rate band for all earners, from €33,800 to €34,550 for single individuals and from €42,800 to €43,550 for married one earner couples.
The exemption limits, tax credits and standard rate bands applicable for the tax year 2018 are set out in detail on the last page.
An increase in the Home Carer Tax Credit from €1,100 to €1,200
An increase in the Earned Income Credit for self-employed from €950 to €1,150
It is important note that no one earning less than €13,000 pays any USC at all; for those earning above this level, all their income is caught by the charge. Also, like PRSI, it is a straight charge on what you earn and is not affected by whether you are assessed as an individual taxpayer or jointly with a partner.
On the first €12,012
0.5%
On the next €7,360
2%
On the next €50,672
4.75%
On the next €29,956
8%
Balance
11 %
The USC relief for medical card holders is being extended for a further two years (revenue neutral as already in tax base). Medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will now pay a maximum USC rate of 2%.
The minimum wage to increase to €9.55 from January.
Employers PRSI rate @ 8.60% if income is €376 p/w or less
10.85 % If income is above €376 p/w
There will be a €5 increases to social welfare payments including pension, dole and disability allowance from last week of March 2018.
The Telephone Allowance is to be brought back at a rate of €2.50 per week.
Income tax rebate, capped at €20,000, for first time buyers of a principal private residence. The relief is 5% of the house value (capped at €400,000). Maximum relief (i.e. €20,000) available for homes valued between €400,000 and €500,000. Post 31 December 2016, there is no relief for houses valued greater than €500,000. Claimants must take out a mortgage of at least 70% of the purchase price. The scheme only applies to new builds, self builds or a converted building not previously used as a dwelling and not to second hand properties. The scheme will be in place until 31 December 2019
Income tax credit split over two years for homeowners who carry out renovation / improvement works on their principal private residence from 25 October 2013 to 31 December 2018. The credit is calculated at a rate of 13.5% on all qualifying expenditure over €4,405 (ex VAT). The maximum credit is €4,050.
Market Value less than €1,000,000 @ 0.18 %
Market Value greater than €1,000,000:
– First €1,000,000 @0.18 %
– Balance0.25 %
Tobacco Products Tax: The excise duty on a packet of 20 cigarettes is being increased by 50 cents (including VAT) with a pro-rata increase on the other tobacco products, and an additional 25c on roll your own tobacco.
This will take effect from midnight on 10 October 2017.
This is a new tax system introduced on 1st April 2018,a tax on sugar sweetened beverage.
The tax will apply to sugar sweetened drinks with a sugar content between 5 grams and 8 grams per 100ml at a rate of 20c per litre. A second rate will apply for drinks with a sugar content of 8 grams or above at 30c per litre.
A 0% benefit-in-kind (BIK) rate is being introduced for electric vehicles for a period of 1 year. This will for allow for a comprehensive review of benefit in kind on vehicles which will inform decisions for the next Budget. Electricity used in the workplace for charging vehicles will also be exempt from benefit in kind.
Tapered extension of mortgage interest relief for remaining recipients – owner occupiers who took out qualifying mortgages between 2004 and 2012. 75% of the existing 2017 relief will be continued into 2018, 50% into 2019 and 25% into 2020. The relief will cease entirely from 2021.
Gains arising to employees on the exercise of KEEP share options will be liable to Capital Gains Tax on disposal of the shares, in place of the current liability to income tax, USC and PRSI on exercise. This incentive will be available for qualifying share options granted between 1 January 2018 and 31 December 2023.
To encourage owners of vacant residential property to bring that property into the rental market, a new deduction is being introduced for pre-letting expenses of a revenue nature incurred on a property that has been vacant for a period of 12 months or more. A cap on allowable expenses of €5,000 per property will apply, and the relief will be subject to clawback if the property is withdrawn from the rental market within 4 years. The relief will be available for qualifying expenses incurred up to the end of 2021.
Increase in the VAT rate on sunbeds from 13.5% to 23% In line with the Government’s National Cancer Strategy, the VAT rate on sunbed services is being increased from 13.5% to the standard rate of 23% from 1 January 2018, in order to deter sunbed use, due to clear evidence of a link between sunbed use and skin cancer.
The planned vacant site levy for 2019 will now be 7pc.
A VAT refund scheme is being introduced to compensate charities for the VAT they occur on their inputs. The scheme will be introduced in 2019 in respect of VAT expenses incurred in 2018. Charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive. An amount of €5m will be available to the scheme in 2019.
Changes to section 604A of the Taxes Consolidation Act 1997 (Relief for certain disposals of land or buildings aka the 7-year CGT relief)* An amendment will be made to Section 604 of the Taxes
Consolidation Act 1997, otherwise known as the 7-year CGT relief, which will allow the owners of qualifying assets to sell those assets between the fourth and seventh anniversaries of their acquisition and still enjoy a full relief from CGT on any chargeable gains.
Rate ( unchanged )@33 %
Annual Exemption €1,270
Treatment of solar farms for the purposes of the Capital Acquisitions Tax (CAT) agricultural relief; Capital Gains Tax (CGT) retirement relief For the purpose of CAT agricultural relief and CGT retirement relief, agricultural land placed under solar infrastructure will continue to be classified as agricultural land (formerly it would no-longer have been deemed agricultural land), but with a condition restricting the amount of the farmland that can be used for solar infrastructure to 50 per cent of the total farm acreage.
The Minister reiterated in his Budget speech that the 12.5% Corporation Tax rate will remain in place indefinitely.
This measure will provide that the deduction for capital allowances for intangible assets, and any related interest expense, will be limited to 80% of the relevant income arising from the intangible asset in an accounting period.
This is a measure to incentivise companies to invest in energy efficient equipment. This measure was due to expire at the end of 2017 and following a review by the Department of Finance is being extended to the end of 2020.
Change of rate of Stamp Duty on Non-Residential Property from 2% to 6%6% on commercial (non residential) properties* and other forms of property not otherwise exempt from duty, effective on and from 11 October 2017
Details of a stamp duty refund scheme for commercial land purchased for development of housing (subject to certain conditions including requirement to commence development within 30 months of purchase) to be announced in the Finance Bill
1% on properties valued up to €1,000,000
2% on balance of consideration in excess of €1,000,000
There is no increase to childcare subsidies introduced last year which came into effect in September. However, Minister Zappone has secured funding to close loopholes which will see around 20,000 three and four-year-olds will benefit from additional free childcare.
Funding has been secured for the Early Childhood Care and Education Scheme (ECCE), increasing the average entitlement from 61 weeks to 76.
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