Budget 2017

Summary

Tax Credits, Reliefs and Rates for the Tax Years 2017 and 2016

The following is a summary of Budget 2017 and is not intended to be a comprehensive guide. Simply click on the section in the table below for more details.

	Section	Observations at a Glance
1	Tax Rates / Credits	Non PAYE tax credit increased to €900pa. Increase in Carers tax credit to €1,100
2	PRSI / USC rates	All first 3 USC rates reduced by 0.5%
3	Personal Tax	DIRT tax to be reduced by 2% pa to eventual rate of 33% by 2020 Residential Rent interest relief announced
4	Business Tax	Farming & fishing reliefs introduced. 9% VAT rate retained
5	Capital Taxes	Increase CAT class A threshold by €30K: class B & C by 8%: Special Entrepreur CGT rate introduced in 2016 reduced to 10% from 20%
6	Property Taxes	First Time buyers new housing incentives announced: Rent A Room relief increased
7	Indirect Taxes	Increases of €0.50c in pk 20 Cigs & prorata for other Tobacco products
8	Pensions	No measures announced in private pensions
9	Social Welfare	Increases of €5 pw in all Social Welfare benefits / pension plus 85% Christmas Bonus.

 

 

1. Rates / Credits

Personal Tax Credits	2017	2016
Single Persons	1,650	1,650
Married / Civil Partnership	3,300	3,300
Additional one-parent family	1,650	1,650
PAYE	1,650	1,650
Age credit -Single	245	245
Age credit-Married	490	490
Home carer	1,100	1,000
Non PAYE earners tax credit	900	550

Rent Relief:
Under age 55 single persons	200	200
Under age 55 married / civil partnership	400	400
Over age 55 single persons	400	400
Over age 55 married / civil partnership	800	800
Service charges	N/A	n/a
Incapacitated child	3,300	3,300
Blind persons:
Single	1,650	1,650
Married / civil partnership (both blind)	3,300	3,300
Widowed additional credit	540	540
Widowed person bereaved in year assessment	3,300	3,300
Widowed parent:
1st year after year of bereavement	3,600	3,600
2nd year after year of bereavement	3,150	3,150
3rd year after year of bereavement	2,700	2,700
4th year after year of bereavement	2,250	2,250
5th year after year of bereavement	1,800	1,800

Exemptions limits 65- years and over
Single / widowed/surviving civil partner	18,000	18,000
Married / civil partnership	36,000	36,000

Standard Rate Bands
Single / widowed/surviving civil partner	33,800	33,800
Married couples, one income	42,800	42,800
Married couples, two incomes	67,600	67,600
One parent / widowed parent	37,800	37,800

Tax rates
Standard rate	20%	20%
Top rate	40%	40%

2. PRSI / USC Rates

	2017	2016
Employee ceiling	No limit	Graduated credit introduced
Employee PRSI exemption	No exemption	No exemption
Employee PRSI rate	4%	4%
Employer PRSI (higher rate)	10.75%	Entry point increased to €376pw
Employer PRSI (lower rate)	4.25%	4.25%
Self employed ceiling	No limit	No limit
Self employed minimum contribution	€500	€500
Self employed PRSI rate	4%	4%
Universal Social Charge (USC)
Exemption limit	12,012	13,000
Band 1 (0- 12,012) for 2016	0.5%	1%
Band 2 (12,012 – 18,668) for 2016	2.5%	3%
Band 3 (18,668 – 70,044) for 2016	5%	5.5%
Incomes in excess of €70,044	8%	8%
Self employed income >100,000	Surcharge 3%	Surcharge 3%
Aged 70 and over & medical card holders Income less than €60K	1% / 3%	1% / 3%

3. Personal Tax

Universal Social Charge (USC):

• Rates reduced by 0.5% for all first 3 rates
• Rate 2 band increased from €18,668 to €18,772

PRSI:  No changes

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 increased from €550 to €900 pa for Non PAYE earners (self-employed, company directors).

DIRT (Deposit Interest Retention Tax): Deduction of 2% pa to eventual rate of 33% by 2020.

Private Residential Interest relief : To be increased from current 75% to 80% in 2017 and 5% pa thereafter to 100%

On the Way: Sugar -sweetened tax to be introduced from 2018

4. Business Tax

Value Added Tax (VAT): 9% (hospitality / tourism) VAT rate extended

Start your Own Business scheme: Extended for further two years

Corporation tax:   12.5% rate retained

Farming, Agri & Fishing Sector: Introduction of income tax credit €1,270 per annum for fishermen: Low cost, highly flexible loan funding for farmers

5. Capital Taxes

Capital Gains Tax (CGT): Special rate of 20% reduced to 10% for chargeable gains up to €1m in respect of disposals / part disposal of businessess

Capital Acquisitions Tax (CAT): Increase in Class A threshold to €310,000 from €280,000: Class B & C thresholds increased by 8%.

6. Property

• Housing :
• First time Buyers scheme announced for New Homes
• HRI scheme extended to end of 2018:
• Rent A Room Relief increased to €14,000 pa
• Mortgage Interest relief extended to 2020
• €28m for Emergency accommodation
• €105m to enable 15,000 more households to avial of Housing Assistance Payment Scheme (HAPS)

7. Indirect Taxes

Alcohol: No changes announced.

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.

Carbon Tax: Relief announced for solid fuels

8. Pensions

Tax relief for pension contributions: Remains at marginal tax rate.

9. Social Welfare

Basic welfare payments / child benefit:

• Increase ALL benefits of €5 per week from March 2017.
• All social welfare pensions to increase by €5 per week from March 2017
• Christmas bonus of 85% of benefits to be paid this Christmas to all Social Welfare recipients.
• Single Affordable Childcare  scheme (6 months to 3 years) to be introduced from September 2017 & universal subsidies for  6 months to 3 years
• Medical card for all children who receive domiciliary care allowance
• €25 cap on prescription charges for over age 70 to be reduced to €20 from March 2017