Analysis of the bank stress tests and details of the restructuring dominated the headlines this weekend. The estimated bill for rescuing the Irish banking sector increased by €24 billion last week and now stands at €70bn with only two main banks remaining as financial “pillars” – Bank of Ireland and an AIB/ESB hybrid. Irish Life & Permanent will sell off its life assurance arm and permanenttsb will be hived off as a niche mortgage bank or wound down.
Europe’s inflation problem is set to cause distress in Ireland and other debt-laden nations. The European Central Bank (ECB) is expected to raise its rate – which is the base rate for banks who lend money to consumers – from a record low of 1%. After keeping the rate steady for two years, the ECB may announce a quarter-point rise in the rate to 1.25% on Thursday to control inflation in the larger Eurozone area now running at 2.6% due to runaway commodity prices.
Separated couples can no longer assume the sale of their home can be used to settle separation or divorce judgements. A High Court decision this week found that highly-geared properties cannot be sold to settle family law cases because of the poor outlook for property and the likelihood of interest rate increases.
Wealthy individuals are diverting some of their retirement savings away from pensions following the Budget crackdown on pensions that places a punitive tax on funds greater than €2.3m, says The Sunday Times. Pension funds with more than this amount are subjected to tax at 69% charged at retirement and on withdrawal of the funds.
This week’s drastic bank restructuring announcement leaves consumers with only two main state-supported Irish banks to choose from – Bank of Ireland and an AIB/EBS hybrid. Although there are two foreign owned banks still in the mix, Ulster Bank and National Irish Bank, only Ulster Bank is focusing on personal banking customers.
People with a Permanent TSB tracker mortgage should suspend voluntary overpayments for a while to await news of a possible sweetener to be introduced by the bank, The Sunday Times’ personal finance editor Niall Brady advises.
It’s that time of year again – the annual charge on investment properties and holiday homes is due from this week, The Sunday Post notes.
Expectant parents could save more than €1,000 by being tax-efficient during pregnancy, The Sunday Business Post reports.
Transport by ambulance for pregnancy-related travel, physiotherapy and hospital-based ante-natal treatment would all qualify for relief. Also, in many cases consultants’ fees and other additional necessary services would come into the equation.
Following birth, claims may also be allowed on the cost of follow-up treatments, check-ups and medicines.
Tax relief on medical expenses is now capped at 20%, regardless of the individual’s tax bracket but claims can still be backdated for four years and before 2009 the rate was 41%.
If you think you have unclaimed medical expenses contact Anthony Casey to process your tax refund claim.
The government is to unveil its so-called ‘Jobs Budget’ in May, shortly before the arrival of Queen Elizabeth and President Obama, The Sunday Independent reports.
Almost 10% of the 6m loans registered with the Irish Credit Bureau (ICB) are now at least a month in arrears – up from fewer than 1% in 2007, according to The Sunday Times.
Thousands of people who owe money on their energy bills are effectively leaving their debts behind when switching to other operators, according to The Sunday Business Post, which says this is a growing trend the energy regulator is considering plans to prevent.
Food companies are now pitching in on a novel way to tackle the growing obesity crisis but it has nothing to do with a sudden Pauline conversion to social consciousness.
An individual may no longer be able to claim tax relief on contributions he or she makes to a pension fund after it reaches €1.5m – and possibly even less – under proposals suggested in the Programme for Government, The Sunday Business Post reports.