Budget 2015 was published today by the Minister for Finance.
There were reductions in the 2% USC band to 1.5% and the 4% USC band to 3.5%. The entry level to USC increased from €10,000 to just over €12,000. There was a decrease in the 41% income tax rate by 1%, seeing it reduced to 40%. The income tax standard rate band is to increase by €1,000 to €33,800
Income tax relief will be given on water charges up to a maximum of €500 per household per year, which will be worth up to €100 per household.
There will be no increases in the VAT rates and the reduced rate of 9% for tourism is to be extended. There will be no increases in excise duty on petrol, diesel or alcohol. No surprise with the hit on the cost of a 20-pack of cigarettes which will increase by 40 cent.
Corporation tax will remain at 12.5% and the three year corporation tax relief for start-up companies is to be extended.
The home renovation tax incentive scheme is to be extended to rental properties whose landlords are liable for income tax. This will apply to work done by end of 2015.
First time buyers will get a refund of DIRT on savings (used to buy a home) between now and 2017. The savings cannot exceed 20% of the purchase price.
Child benefit will increase by €5 per child per month with a further increase of €5 on 2016. A christmas bonus of 25% of the rate will also be given this year.
Full details of all the changes can be downloaded through the link above. If you have any queries on how the budget may affect your business or personal circumstances, please do not hesitate to contact me on 021 4217474 or by email on info@CACMAccountants.ie