Royal Canal Financial Control Services

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Budget 2015

14 October 2014

Last Updated (bold type): 15 October 2014

Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.

Items marked TBC (To Be Confirmed) are attaching/related to taxation elements which were amended in Budget 2015. We await further details to confirm what changes, if any, apply to these related items.

Personal Taxation
• Artists’ Exemption increased by €10,000 to €50,000.
• Rent-A-Room Relief threshold increased to €12,000.
• Water charges tax credit of 20%, up to a maximum water charge of €500. Credit available in following year.

Business Taxation
• Corporation tax 3 year exemption extended to new businesses starting in 2015.
• 12.5% corporation tax rate being retained.

Relevant Contracts Tax and Construction Industry
• Home Renovation Scheme extended to rental properties where the landlord is subject to income tax.

Indirect Taxes
• Increase in Farmers’ Flat-Rate Addition from 5% to 5.2% from 1 January 2015.
• 9% VAT rate being retained.

Stamp duty
• No changes to note.

Carbon Tax
• No changes to note.

Capital Taxes
• Property purchases incentive (no capital gains tax if purchased property by 31st December 2014 and held for seven years) is not being extended.

(Local) Property Tax
• No changes to note

Miscellaneous Provisions & Announcements
• Extension of VRT relief on hybrid electric vehicles to 31 December 2016.
• Child benefit increased by €5 per child from 1 January 2015.
• Price of 20 pack cigarettes to increase by 40c from midnight (Other tobacco products pro-rata increase).
• 25% of Social Welfare Christmas Bonus restored.
• DIRT exemption on deposit funds for first time buyers, for private dwellings purchased from Budget night until 2017.
• No change in excise duty on old reliables – petrol/diesel, motor tax, VRT alcohol.

Summary Statistics

Budget 2015Budget 2014
Capital Gains Tax Rate33%33%
Capital Acquisitions Tax Rate33%33%
Income Tax Rates
41% (41% – where payments made less frequently than annually)41% (41% – where payments made less frequently than annually)
Tax Credits
Single Person€1,650€1,650
Married Couple€3,300€3,300
PAYE Credit€1,650€1,650
Rate Bands
Single/widowed with dependent children€36,800 TBC€36,800
Married -one income earner€42,800€41,800
Married – two income earners€67,600 €65,600
Contribution CeilingNo limitNo limit
Universal Social Charge
< €12,012Exempt
< €10,036Exempt
€ 0 – €12,0121.5%
€ 0 – €10,0362%
€12,013 – €17,5763.5%
€10,037 – €16,0164%
€17,577 – €70,0447%
€70,044 – €100,0008%
Self-employed > €100,00011%10%
Age >70/medical card holders with income < €60,000 – Max rate3.5%4%
Age >70, income > €100,000 – Max rateTBC7%

Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive summary please refer to the government press release.

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