» High earners restriction
- Effective rate of income tax increases from 20 per cent to 30 per cent
- This affects those earning over 125,000 where they avail of special tax reliefs
- Minimum 30% tax where earning over 400,000
» Domicile/Citizenship tax
- Charge of 200,000 per annum to be brought in where Irish domiciled and
- worldwide income exceeds 1 million
- and Irish-located capital is greater than 5 million
» Pension relief
- Awaiting Governments National Pensions Framework
- Suggested pension lump sum draw down below 200,000 should not be taxed.
- Lump sum draw-down above 200,000 to be considered
- Potential for consolidated 33 per cent rate of tax relief to be considered
» Mortgage interest relief
- New loans taken out before 1 July 2011 to get tax relief on interest up to 2017
- Mortgage interest relief ceases entirely by the end of 2017
- Those currently in negative equity relief extended to 2017 where otherwise ending
» PRSI
- New Universal Social Charge to be brought in 2011: this will do away with Employee PRSI, income levy and health levy. Details to be announced in 2010
» Excise reductions
- 12 cent per pint of beer and cider;
- 14 cent per half glass of spirits;
- 60 cent per standard bottle of wine
» Carbon tax
- Tax equivalent to 15 per tonne to be introduced
- For petrol and diesel effective from midnight 9th December
- For heating oil and gas from next May
- For coal and peat next year
» Job-seekers Allowance payments
- Those aged 20-21 reduced to 100 per week
- Those aged 22-24 reduced to 150 per week
- For others the rate will be reduced to 150 per week where job offers or activation measures have been refused.
» State pension unchanged.
» Child Benefit
- Reduced by 16 per month
- Low rate reduced to 150
- High rate reduced to 187
- Qualified Child Allowance increasing by 3.80 per week for those on welfare
» Government Expenditure Public Sector
Civil servants reduction in pay of
- 5 per cent on the first 30,000 of salary
- 7½ per cent on the next 40,000 of salary
- 10 per cent on the next 55,000 of salary.
- 8 per cent for those with salaries from 125,000 to 165,000;
- 12 per cent for those earning between 165,000 to 200,000; and
- 5 per cent for those earning 200,000 or more.
- Pension levy already introduced of approx 7%
- The pension entitlements of those retiring in 2010 will not be affected
» VAT
- Reduction in VAT rate to 21%, a ½% decrease
» Cars
- VRT exemption for electric cars extended.
- Car scrappage scheme from 1 January 2010 -
- Applies to cars 10 years old
- VRT relief of up to 1,500 from cost of new car
» Corporation Tax
- Exemption for start up companies extended for new start-ups in 2010.
- 12.5% corporation tax rate continues.
- Scheme for Accelerated capital allowances for energy efficient equipment extended.
- Extension of PRSI exemption for employers taking on workers who were receiving social welfare payments.
» Other amendments
- Domestic Rates and Water charges are a possibility for 2010.
- Water charges are to be based on consumption.
- Details to be announced by the Minister for the Environment.
- Solidarity Bond (Savings Scheme) to be introduced by the Government.
[Return to top of page]
|
