Finance Bill 2010

04/02/2010 The Minister for Finance today announced the details of the Finance Bill 2010, which gives effect to some of the measures announced in last December’s Budget. The bill will become law by 9th April 2010.

Some of the main measures enacted as detailed in our budget summary are as follows:

Carbon Tax: Non-transport fuels (i.e. heating fuels) will be levied from 1 May 2010. Non-oil fuels (coal/peat) subject to ministerial order.

Car Scrappage Scheme: No changes from budget. VRT exemption for electric vehicles until 31 December 2012.

Exemption from Corporation Tax for 3 years: Extended to companies which commence trading in 2010.

The minister also outlined some new measures in his speech which are included in the bill:

– VAT regime to be extended to public bodies following an EU ruling – this will have implications for services provided by local authorities which would previously held an exempt status, but the service would otherwise be liable to VAT, e.g. refuge charges.

-Tax relief on service charges to be abolished with the last year to be claimed being 2010 (claimed on 2011 return).

-Abolishment of long-term carer policies and capital allowances for childcare facilities

-Charitable donations relief to be given to charities resident in other EEA/EFTA states in line with European treaties and case law.

-Rent a room relief not available to company directors/employees where the the rent arises from the occasional use of the room by a client.

-Quarterly filing of small liability RCT returns proposed

For further details on any of the above or on the more technical aspects of the bill please see the Revenue website. If you would like clarification on any issue, please do not hesitate to contact us.