Budget 2017: What it means for YOU

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.

9% vat for Hospitality sector
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%.

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.

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