The following headline items arise in Budget 2109. Download our Budget 2019 newsletter in PDF format for full analysis.
• Corporation Tax Rate remains at 12.5%
• A new Anti-Avoidance Directive (ATAD) compliant Exit Tax regime is to come into effect from midnight tonight.
• The 9% VAT Rate will be increased to 13.5% for the Hospitality sector from 01 January 2019
• There will be an increase in the Minimum Wage to €9.80 from 01 January 2019
• The Minister announced changes to both the rates and bands for Universal Social Charge
• Increase in the Standard Rate Income Tax bands of €750
• The Earned Income Tax Credit will increase to €1,350
• The Training Levy Fund will increase by 0.1% which will increase the employers PRSI rate
• An increase in the Group A Exempt Threshold for Capital Acquisition Tax of €10,000 was also announced
Did You Know: Medical Expense Claim
Are you a sufferer of coeliac disease? If so, it is possible to include the costs of dietary requirements in your medical expenses claim once you retain the receipts. It is important to note that you must have proof in the form of a doctor’s letter. Once obtained it could get you a tax relief of 20% on specialised foods.
Noone Casey Tax News, Stamp Duty
The rate of stamp duty on non-residential property was increased from 2% to 6% with effect from midnight on Budget Day. However transitional arrangements are in place whereby the 2% rate of stamp duty will apply to binding contracts entered into before 11 October 2017 provided the instrument for the transfer is executed before 1 January 2018.
Business Brief, Benefit in Kind
Are you changing your car in 2018? It was announced in Budget 2018 that a new 0% Benefit in Kind rate on electric motor vehicles was introduced from 1 January 2018 to 31 December 2018. A comprehensive review of the Benefit in Kind regime will take place in 2018 which could see this measure been extended into the future.
Tax Brief: Pre-Letting Expenses
Expenses incurred on rental properties prior to letting was previously disallowed as a deduction against rental income when computing taxable rental profits.
Finance Bill 2017 includes new measures permitting a deduction for pre-letting expenses incurred on previously vacant residential properties where: