Budget 2017: What it means for YOU
Tuesday’s Budget as announced by Minister Noonan was favourable towards the self employed with an increase in the earned income tax credit by €400 bringing it to €950.
Universal Social Charge rates were also decreased by 0.5% on the lower three rates bringing the lowest rate to 0.5% from January 2017. There was no change to the tax rates or tax bands.
9% Vat Rate Retained For Tourism/Hospitality Sector
The 9% VAT rate has been retained as a reaction to Brexit. Given that Ireland has seen a decrease in the amount of UK visitors since Brexit this will be welcomed by tourist providers.
Minister Noonan also stated that there was no intention to change the current 12.5% Corporation Tax rate.
The Start Your Business relief has also been extended until the end of 2018.
There was no change to the 33% rate of Capital Gains Tax but the 20% rate for Entrepreneur relief has been reduced to 10%.
Landlords
For landlords the interest deductibility for qualifying interest payments on monies borrowed for residential rented properties has been increased from 75% to 80%. This rate will increase by 5% per annum until it is fully restored to 100% deductibility.
A Help to Buy Scheme has been introduced to assist 1st time buyers with purchasing a new property. A rebate of Income Tax paid over the previous 4 years up to a maximum of 5 % of the purchase price up to the value of €400,000 will be provided. Applicants must take out a mortgage of at least 80% of the purchase price.
Read Treacy’s in-depth Budget 2017 Report Glacken budget Report 2017
About the Author
Tracey Glacken is a Certified Public Accountant and owner of Glacken Accountants. She works with SME’s in the area of audit, financial statements preparation, business planning and taxation.
See www.glackenaccountants.com for more information.
