Budget 2016
Summary
Tax Credits, Reliefs and Rates for the Tax Years 2015 and 2016
The following is a summary of Budget 2016 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 | Non PAYE tax credit introduced. Increase in Carers tax credit |
| 2 | PRSI / USC rates | PRSI reduced for low earners & employers: USC rates reduced |
| 3 | Personal Tax | No changes tax bands & rates |
| 4 | Business Tax | Reduction in entry point for employers top rate of PRSI |
| 5 | Capital Taxes | Increase CAT class A threshold & special CGT rate introduced |
| 6 | Property Taxes | Local Property Tax (LPT) frozen until 2019 |
| 7 | Indirect Taxes | Increases in Tobacco |
| 8 | Pensions | Pension Levy to be abolished at end 2015 |
| 9 | Social Welfare | Increases in Pensions, Child benefit & Christmas Bonus |
1. Rates / Credits
| Personal Tax Credits |
2015 |
2016 |
| 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 |
| Non PAYE earners tax credit |
– |
550 |
| 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 |
33,800 |
No change |
| Married couples, one income |
42,800 |
No change |
| Married couples, two incomes |
67,600 |
No change |
| One parent / widowed parent |
37,800 |
No change |
| Tax rates | ||
| Standard rate |
20% |
No change |
| Top rate |
40% |
No change |
2. PRSI / USC Rates
|
2015 |
2016 |
|
| Employee ceiling |
No limit |
Graduated credit introduced |
| Employee PRSI exemption |
No exemption |
No change |
| Employee PRSI rate |
4% |
No change |
| Employer PRSI (higher rate) |
10.75% |
Entry point increased to €376pw |
| 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 |
12,012 |
13,000 |
| Band 1 (0- 13,000) for 2016 |
1.5% |
1% |
| Band 2 (13,000 – 18,668) for 2016 |
3.5% |
3% |
| Band 3 (18,668 – 70,044) |
7% |
5.5% |
| Incomes in excess of €70,000 |
8% |
No change |
| Self employed income >100,000 |
Surcharge 3% |
No change |
| Aged 70 and over/medical card holders>60K |
1.5% / 3.5% |
1% / 3% |
3. Personal Tax
Universal Social Charge (USC):
- Exemption threshold increased to just over €13,000 (from €12,012).
- Rates Bands reduced to 1% (from 1.5%):3% (from 3.5%) & 5.5% (from 7%)
- 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%.
PRSI: Graduated PRSI credit for workers introduced
Standard Rate Band: No changes. Rate remains at 20%
Top Rate of Income Tax: No changes. Rate remains at 40%
Non PAYE earners tax credit: Tax credit introduced of €550 for Non PAYE earners.
Film Relief /Tax Relief Scheme: Increase in expenditure to €70m
DIRT (Deposit Interest Retention Tax): No changes
4. Business Tax
Value Added Tax (VAT): No changes to any VAT rates / thresholds
Corporation tax: Special rate of 6.25% introduced for qualified income from Knowledge Development Box (KDB) .
Employers PRSI: Entry point for top rate of 10.75% increased to €376 per week
Card payment charges: Reduction in fees for retailers for accepting card payments. Removal of €5 stamp duty for customers debit / ATM cards to be replaced by 12c per transactions per ATM cards and removal for debit cards. New charges to be capped so customers do not pay any extra
Farming & Agri Sector: Introduction of income tax credit worth upto €5,000 per annum for 5 years for partnerships
5. Capital Taxes
Capital Gains Tax (CGT): Special rate of 25% to apply to chargeable gains up to €1m in respect of disposals / part disposal of businessess
Capital Acquisitions Tax (CAT): Increase in Class A threshold to €280,000 from €225,000.
6. Property Taxes
Local Property Tax (LPT) : Frozen until 2019
7. Indirect Taxes
Alcohol: NO Increases.
Tobacco: Increase of 50c on a packet of 20 cigarettes from midnight with prorata 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 31 December 2015.
9. Social Welfare
Basic welfare payments / child benefit:
- Increase child benefit of €5 per child per month (to €140 pm).
- All social welfare pensions to increase by €3 per week
- Christmas bonus of 75% of benefits to be paid this Christmas to all Social Welfare recipients.
- Fuel allowance to increase by €2.50 per week.
- Family Income Supplement (FIS) to increase by €5 pw for families with one child and €10 pw for 2 more children.
- Respite Care Grant will be restored in full to €1,700.
- Free GP care to all children under 12 years subject to negotitations with GPs
- Early childcare scheme to be extended for children from age 3 to 5 1/2 or until they begin primary school
- Statutory Paternity leave of 2 weeks to be introduced from September 2016