Reductions in universal social charge (USC) represent the main benefit for most people, with the key 5.5 per cent rate cut to 5% per cent.
So what are the key points?
- Tax rates & income bands remain unchanged
- Tax credit for self-employed increased by €400 to €950
- 0.5% cut in each of the 3 lowest USC bands
- DIRT will reduce by 2% each year over the next 4 years (from 41% to 33%)
- New Help to Buy incentive for first time buyers
- Rented residential property interest relief increased from 75% to 80%
- Mortgage interest relief extended to 2020
- €1.2bn in funding for housing, with a goal to deliver 47,000 new social housing units by 2021
- €5 per week increase in the state pension from March 2017
- Capital Gains Tax further reduced to 10% for the sale of a business up to €1 million
- €290 million earmarked to restore civil service pay cuts
- Rent a room tax exemption increased by €2,000 to €14,000
- 800 new Gardai to be recruited in 2017, and 2,400 new teaching posts announced
- Inheritance tax reduced, especially from parents to children, where the threshold increases to €310,000
- Tourism & Hospitality VAT rate of 9% unchanged
- Cigarettes up 50 cents, alcohol & fuel duties unchanged
- A new Sugar Tax by April 2018
- Home Renovation Incentive further extended until 31 December 2018.
We hope this information will be of benefit to you and your business.
Attached is a more detailed guide for your use.budget-summary-2017
As always we are available should you have any further questions.