Budget 2015
Budget 2016
Summary
Tax Credits, Reliefs and Rates for the Tax Years 2015 and 2016
The following is a summary of Budget 2015 and is not intended to be a comprehensive guide. Just click on the section in the table below for more details.
|
Section |
Observations at a Glance |
|
| 1 | Tax Rates / Credits | Top rate tax reduced to 40%. Water charges tax credit introduced |
| 2 | PRSI / USC rates | USC rates reduced |
| 3 | Personal Tax | Standard bands increased. DIRT refunds First Time buyers |
| 4 | Business Tax | Retention of 9% VAT rate. Farming & Agri Incentives introduced |
| 5 | Capital Taxes | CGT reliefs abolished |
| 6 | Property Taxes | Home Renovation Scheme extended to Rental Properties |
| 7 | Indirect Taxes | Increases in Tobacco |
| 8 | Pensions | Pension Levy to be abolished at end 2015 |
| 9 | Social Welfare | Christmas Bonus & Water charges subsidy introduced |
1. Rates / Credits
| Personal Tax Credits |
2014 |
2015 |
| Single Persons |
1,650 |
No change |
| Married / Civil Partnership |
3,300 |
No change |
| Additional one-parent family |
1,650 |
NO Change |
| PAYE |
1,650 |
No change |
| Age credit -Single |
245 |
No change |
| Age credit-Married |
490 |
No change |
| Home carer |
810 |
No change |
| Dependant relative tax credit |
70 |
No change |
| Rent Relief: | ||
| Under age 55 single persons |
200 |
No change |
| Under age 55 married / civil partnership |
400 |
No change |
| Over age 55 single persons |
400 |
No change |
| Over age 55 married / civil partnership |
800 |
No change |
| Service charges |
N/A |
No change |
| Incapacitated child |
3,300 |
No change |
| Blind persons: | ||
| Single |
1650 |
No change |
| Married / civil partnership (both blind) |
3,300 |
No change |
| Widowed additional credit |
540 |
No change |
| Widowed person bereaved in year assessment |
3,300 |
No change |
| Widowed parent: | ||
| 1st year after year of bereavement |
3,600 |
No change |
| 2nd year after year of bereavement |
3,150 |
No change |
| 3rd year after year of bereavement |
2,700 |
No change |
| 4th year after year of bereavement |
2,250 |
No change |
| 5th year after year of bereavement |
1,800 |
No change |
| Exemptions limits 65- years and over | ||
| Single / widowed/surviving civil partner |
18,000 |
No change |
| Married / civil partnership |
36,000 |
No change |
| Standard Rate Bands | ||
| Single / widowed/surviving civil partner |
32,800 |
33,800 |
| Married couples, one income |
41,800 |
No change |
| Married couples, two incomes |
65,600 |
67,600 |
| One parent / widowed parent |
36,800 |
37,800 |
| Tax rates | ||
| Standard rate |
20% |
No change |
| Top rate |
41% |
40% |
2. PRSI / USC Rates
|
2014 |
2015 |
|
| Employee ceiling |
No limit |
No change |
| Employee PRSI exemption |
No exemption |
No change |
| Employee PRSI rate |
4% |
No change |
| Employer PRSI (higher rate) |
10.75% |
No change |
| Employer PRSI (lower rate) |
4.25% |
No change |
| Self employed ceiling |
No limit |
No change |
| Self employed minimum contribution |
€500 |
No change |
| Self employed PRSI rate |
4% |
No change |
| Universal Social Charge (USC) | ||
| Exemption limit |
10,036 |
12,036 |
| Band 1 (0- 12,036) for 2015 |
2% |
1.5% |
| Band 2 (12,036 – 16,016) for 2015 |
4% |
3.5% |
| Band 3 > 16,016 – 70,000Incomes in excess of €70,000 |
7% 7% |
No Change8% |
| Self employed income >100,000 |
10% |
11% |
| Aged 70 and over/medical card holders>60K |
7%/10% |
No change |
3. Personal Tax
Universal Social Charge (USC):
- Exemption threshold increased to just over €12,000 (from €10,036).
- Rates Bands 1 & 2 reduced to 1.5% (from 2%) & 3.5% (from 4%) respectively.
- New 8% rate introduced for earnings over €70,000.
- Self employed earners over €100,000 rate increased to 11% (from 10%)
- Retention of exemption from Top rate for medical card holders / over age 70 earning less than €60,000, now only liable to maximum rate of 3.5%.
Standard Rate Band: Single person band increased by €1,000 / Married by €2,000.
Top Rate of Income Tax: Reduced to 40% (from 41%)
Water charges Tax credit: Tax credit introduced maximum cost of €500 at standard rate 20% i.e. €100 tax saving.
Seed Capital Relief scheme: …will be re-launched in the coming months.
Film Relief /Tax Relief Scheme: To be introduced in 2015 as announced in Budget 2014
DIRT (Deposit Interest Retention Tax): First Time buyers can apply for refund of DIRT in respect of savings up to maximum of 20% of the purchase price of first home until end 2017.
4. Business Tax
Value Added Tax (VAT): No changes to any VAT rates / thresholds
Corporation tax:
- Standard rate of 12.5% remains unchanged.
- Extension of corporation tax exemption for new companies to be extended for further 3 years.
- Companies must now be ‘Tax Resident’ as well as ‘Resident’.
- New corporation tax reforms for International Financial Services Sector.
Tourism and Hospitality: Retention of 9% VAT rate.
Farming & Agri Sector: Various support measures introduced including:-
- No Milk Quotas from 2015
- Increasing Income tax exemption by 50% & introduction of a new threshold for leases for 15 years and over
- Allowing relief where lessee is a company
- Removing the current 40 years of age threshold for leasing relief
- Extending Stamp duty relief for non- residential land transfers between certain close relatives
- Removing Stamp duty on agricultural leases in excess of 5 years
Marine Sector: Similar supports introduced as those for Farming & Agri sector above
R&D tax credit: Fully phasing out R&D ‘base year’ from 1st January 2015.
5. Capital Taxes
Capital Gains Tax (CGT): Reliefs introduced in 2011 abolished. See below
6. Property Taxes
Capital Gains Tax relief introduced in 2011: To be removed at end 2014.
Removal of 80% windfall tax applying to chargeable gains on disposal or development of land which are attributable to planning decisions since October 2009.
Home Renovation Incentive Scheme: To be extended to rental properties whose owners are liability to Income tax
7. Indirect Taxes
Alcohol: NO Increases.
Tobacco: Increase of 40c on a packet of 20 cigarettes from midnight. 20crata increase on other tobacco products.
Auto Diesel, Petrol, Home Heating oil: NO increases.
8. Pensions
Tax relief for pension contributions: Remains at marginal tax rate.
Pension Levy: Ending 0.6% from end of 2014: Levy of 0.15% will end on 31 December 2015.
Basic welfare payments / child benefit:
- Increase child benefit of €5 per child per month (similar increases in 2016).
- Subsidy of €100per annum for water charges to be paid to ‘Household Package’ & ‘Free Fuel’ recipients
- Christmas bonus of 25% of benefits to be paid this Christmas to all Social Welfare recipients.
- Living alone allowance to increase by €9 per week.