Irish Budget 2019 – Main points
The main takeaways from Budget ’19 in respect of personal finances are as follows:
Personal Taxes
Personal Income Tax rates have not changed. Tax bands have widened marginally so that a single earner now moves from the 20% rate to 40% at earnings over €35,300. The budget statement did not specify earnings bands for married couples, but the implication is entry to the 40% rate at earnings over €44,300 (if one income) or a maximum of €69,850 with both in the workforce. We will need to wait for the Finance Bill for confirmation.
Earned income tax credit increasing to €1,350.
PRSI rates are unchanged
The 4.75% Universal Social Charge on incomes between circa €20k and €70k will decrease to 4.50%
Capital Gains Tax
No change.
Inheritance Tax (CAT)
The tax-free threshold for an inheritance from parents to a child will increase by €10,000 to €320,000
VAT
The special 9% rate for hospitality sector is increasing to 13.5%.
Housing
The Government will launch a €310 million affordable housing scheme, aimed at delivering 6,000 homes over three years.
The government will allocate €1.25 billion to building 10,000 new social homes in 2019.
Local Property tax increases in the future will be ‘moderate and affordable’
100% deduction for interest expense for residential landlords accelerated from 2021 to 2019.
No change to stamp duty
Mortgage Interest Relief
No change
State Pension
The State contributory pension is increasing by €5 per week to a maximum weekly payment of €248
(Note: If currently aged under 57 you will not qualify for State pension until you reach age 68)
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