Budget 2009

14/10/2008

We have summarised the Budget 2009 as a reference point for you.

Income levy of 1% on all income earned up to €100,100, and 2% on all income thereafter. It appears to us that this will be calculated on your gross income, and that your tax credits will not be allowed to be used against this, we await the full details from the Finance Act to be finalised with the Government, before we have further details on this.

Petrol to increase by 8 cent from midnight 14 October 2008.

Cigs to be increased by 50 cent (pack size)

Changes to alcohol excise duties as well, decrease in low alcohol products

No change to corporation tax rate, this is to remain at 12.5%

Mandatory filing of returns to Revenue on-line, the Minister mentioned that there will be an extension of payment deadlines for those filing on line.

Stamp duty on ATM cards to be decreased to €5

Cheque duties to be increased to 50 cent per cheque

Stamp duty top rate is reduced from 9% to 6%

Capital Gains Tax up 2% and being brought forward in 2009.

Farming reliefs remain in place.

Farmers flat rate remaining at 5.2% for 2009

Carbon tax, will not be touched until next years budget.

Businesses with staff car parks in major urban areas €200.

Motor tax rate up 4% on cars below 2.5cc, and CO2 classes A to D
for cars greater than 2.5cc and CO2 classes E,F,G there is to be an increase in 2.5%

Goods vehicles to be increased by 4-5%, these motor tax changes will take effect from 1 January 2009.

Tax bands are to increase by €1,000 for single, and €2,000 for married couples for 2009.

There is an increase in first time buyers interest relief from 20% to 25%.

Non first time buyers, the relief is reduced from 20% to 15%

They have introduced an air travel tax from Ireland at €10 and €2 for short flights within Ireland.

The VAT rate is up from 21% to 21.5% with effect from 1 December 2008.

DIRT is to be increase between 23% to 26%

€200 levy on holiday homes and 2nd houses.

Tax relief capped at standard rate for medical expense claims.