Budget 2017 Going in the right direction on taxation

legal services to people
in business

Email: info@mmcloughlinsolicitors.com
Phone: +353 71 9134513
Mobile: +353 87 6674534

Budget 2017 Going in the right direction on taxation

There are some positive taxation developments in Budget 2017 for Ireland in relation to DIRT, CAT, CGT and USC. An increased earned income credit for the self employed has been announced.

 

Tax reductions announced in Budget 2017

There was some good news in Budget 2017 with the announcement of reductions in the rate of capital gains tax for entrepreneurs, a reduction in some of the USC rates and  a gradual reduction in the deposit interest retention tax.

Increases in the tax free amount that you can inherit or receive as a gift have also been announced in relation to capital acquisition tax.

Link to Department of Finance Summary of Changes.

Budget 2017 Taxes

Universal Social Charge - USC

Some USC rates have been reduced by 0.5% and the band increased to €18,772 for income taxed now at 2.5%

€0 to €12,012 @ 0.5%
€12,013 to €18,772 @ 2.5%
18,773 to €70,044 @ 5%

Capital Acquisition Tax - CAT

The lifetime tax free amounts are being increased:

"The Group A lifetime tax-free threshold applying to gifts and inheritances from parents to children is being raised from €280,000 to €310,000,

The Group B lifetime tax-free threshold applying to gifts and inheritances made to parents, siblings, nieces, nephews or grandchildren is being raised from €30,150 to €32,500.

The Group C lifetime tax-free threshold applying to gifts and inheritances made to all others (except spouses and civil partners who are exempt) is being raised from €15,075 to €16,250."

Capital Gains Tax - CGT

The capital gains tax rate for entrepreneurial relief is being reduced to 10% on gains of up to €1 million (a reduction from the current 20% rate).

Deposit Interest Retention Tax - DIRT

A gradual reduction in the rate of DIRT, a tax on savings has been announced starting with an initial 2% reduction (reducing DIRT to 39%) with a 2% reduction each year so that the DIRT rate will be 33% in 2020.

Earned Income Tax Credit

The earned income tax credit for the self employed has been increased by €400 so that the earned income tax credit for 2017 will be €950.

Please contact us to discuss your taxation requirements.
 

Disclaimer

The material in this article is for general information purposes only and does not constitute legal or taxation advice. Specific legal and taxation advice should be sought before acting. All information and taxation rules are subject to change without notice.

No liability whatsoever is accepted by M. McLoughlin & Co. for any action taken or not taken in reliance on the information in this article

Twitter

 


Book an appointment Downloads Subscribe Contact Us

Make Appointments

Subscribe to our newsletters

By signing up to the newsletter I consent to the use of my data to receive information relating to services, events, articles and information about the firm.