Budget 2016 Highlights

Minister for Finance, Michael Noonan introduced his 2016 Budget on the 13 October 2015.

Key Tax Points

Income Tax

.        €550 Earned Income Tax Credit for the self-employed.

.        Increase of €190 in Home Carer Tax Credit to €1000.

.        Restructuring of USC bands and rates. Reduction of .5% in the 1.5% and 3.5% rates. 1.5% reduction in the 7% rate. 8% rate on income above €70,044 remains.

.        Increased USC exemption to €13,000.

.        Introduction of an Income Tax Credit  of up to €5,000 per annum for family farming Partnerships to facilitate the transfer of family farms to the next generation.

.        Introduction of a tapered PRSI Tax Credit for employees earning between €352.01 and €424.00 per week.

 

Corporation Tax

 .        3 Year Relief for Start-up Companies to continue.

.        Knowledge Development Box relief for R & D companies.

 

Capital Taxes

.         CGT Entrepreneur Relief to be introduced.

.         Increase the Capital Acquisitions Tax Group A threshold to €280,000 from €225,000.

 

VAT

.         Retention of the 9% rate for tourism-related goods and services.

 

Excise Duty

.        50 cent increase in the price of 20 cigarettes from 14 October 2015.

 

Other Matters

.         Minimum Wage to be increased from €8.65 an hour to €9.15 per hour from January 2016.

.         Home Renovation Incentive applying to family homes and rental properties to be extended to 31 December 2016.

.         Commercial road Tax to be simplified and reduced.

.         Local Property Tax revaluation date postponed from 2016 to 2019.

If you have any queries in respect to the changes in the budget and how they may affect your please do not hesitate to contact us.

 

Click to download Budget 2016 Summary