Irish Budget 2019 – Main points
The main takeaways from Budget ’19 in respect of personal finances are as follows:
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
Inheritance Tax (CAT)
The tax-free threshold for an inheritance from parents to a child will increase by €10,000 to €320,000
The special 9% rate for hospitality sector is increasing to 13.5%.
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
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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