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Budget 2018
10 October 2017
Last Updated: 10 October 2017
Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.
Personal Taxation
• Home carer credit increased from €1,100 to €1,200
• Benefit in Kind (BIK) on Electric Vehicles to be set to 0% for a period of 1 year, along with 0% BIK on electricity used in the workplace for charging vehicles.
• Pre-letting expenses incurred of up to €5,000 allowed as revenue expense for tax relief against rental income for properties vacant for 12 months or more.
•Plan to amalgamate USC and PRSI over the medium term
• REMINDER: The government had previously announced an increase in the minimum wage to €9.55 per hour from January 2018
Business Taxation & Regulation
• Earned Income Credit increased from €950 to €1,150
Relevant Contracts Tax and Construction Industry
• No changes noted
Indirect Taxes
• VAT refund scheme for Charities, to compensate for VAT incurred on inputs. Scheme to refund expenses incurred in 2018 in the next tax year
• Tourism rate of 9% to be retained
Stamp duty
• Rate of duty on non-residential property increased from 2% to 6%
Capital Taxes
• Qualifying assets under the ‘7 year CGT relief’ scheme can now be sold between the fourth and seventh anniversaries of acquisition and still enjoy full CGT relief on any chargeable gains.
(Local) Property Tax
• No changes noted
Miscellaneous Provisions & Announcements
• Excise duty on cigarettes increased by 50c
•Sugar tax to be introduced on 1 April 2018
• Tapered residential mortgage interest relief (‘tax relief at source’) for home owners who took out qualifying mortgages between 2004 – 2012 over 3 years (2018: 75% of 2017 relief, 2018: 50% relief, 2019: 25% relief)
•Enhanced Revenue budget for PAYE Compliance interventions, in preparation for the PAYE Modernisation from 1 January 2019
• Brexit loan scheme to assist SMEs
| Budget 2018 | Budget 2017 | ||
| Capital Gains Tax Rate | 33% | 33% | |
| Capital Acquisitions Tax Rate | 33% | 33% | |
| Income Tax Rates | |||
| Lower | 20% | 20% | |
| Higher | 40% | 40% | |
| DIRT Tax | |||
| 39% (39% – where payments made less frequently than annually) | 39% (39% – 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 | |
| Earned Income Tax Credit | €1,150 | €950 | |
| Rate Bands | |||
| Single/widowed | €34,550 | €33,800 | |
| Single/widowed with dependent children | €38,550 TBC | €37,800 | |
| Married -one income earner | €43,550 | €42,800 | |
| Married – two income earners | €69,100 | €67,600 | |
| PRSI | |||
| Contribution Ceiling | No limit | No limit | |
| Universal Social Charge | |||
| < €13,000 | Exempt | Exempt | |
| € 0 – €12,012 | 0.5% [No change] | 0.5% | |
| €12,013 – €18,772 | 2.5% | ||
| €12,013 – €19,372 | 2.0% | ||
| €18,773 – €70,044 | 5% | ||
| €19,373 – €70,044 | 4.75% | ||
| €70,045 – €100,000 | 8% [No change] | 8% | |
| Self employed income > €100,000 | 11% [No change] | 11% | |
| PAYE income in excess of €100,000 | 8% | 8% | |
| Age >70/medical card holders with income < €60,000 – Max rate | 2.0% | 2.5% |
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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