Budget 2012 Summary - Part II

Budget 2012 Summary - Part II

Below are the main points from the second part of Budget 2012 announced by Minister Michael Noonan today (6 Dec 2012)
 

(for those running a business, there will be a special BUDGET 2012 Taxation seminar on 16 Dec)

VAT Changes explained in detail 21% to 23%

Revenue Budget Summary (to download) budget-summary-2012.pdf

Main Points:

• Irish Rail to increase car park charges.
• Health insurers warn of price increases.
• Taoiseach Enda Kenny defends disability cuts.
• “No change in Ireland’s corporate tax rate”, says Minister Noonan
• Tax breaks for companies who try to invest in so called BRICS countries: Brazil, Russia, India, China and South Africa
• Government launching new initiative for multinationals to attract key people to Ireland to create more jobs
• MORTGAGE RELIEF Increase rate of mortgage interest relief to 30% for First Time Buyers who took out mortgage between ’04 and’08
• CAPITAL GAINS Property purchased from midnight tonight and end of 2013 -held for at least 7 years – relieved from Capital Gains
• STAMP DUTY for commercial property transfers to be reduced from current rate of 6% to a flat rate of 2% FROM MIDNIGHT TONIGHT
• New STAMP DUTY applies to all non-residential property, including farmland as well as commercial and industrial buildings
• MORTGAGE INTEREST RELIEF First Time Buyers who purchase a home in 2012 will get mortgage interest relief at 25%
• MORTGAGE INTEREST RELIEF Non-first time buyers will benefit from relief at 15% (rather than 10% signalled)
• PROPERTY RELATED RELIEFS Property relief surcharge of 5 % to be imposed on investors with annual gross income over €100,000
• PROPERTY RELATED RELIEFS This will apply on the amount of income sheltered by property reliefs in a given year
• PROPERTY RELATED RELIEFS Reliefs in Section 23-type investments will not be terminated due to risks of insolvency
• UNIVERSAL SOCIAL CHARGE From January 1st the exemption level on the charge will rise from €4,004 to €10,036
• UNIVERSAL SOCIAL CHARGE Taxpayers can earn just over €10,000 before paying the USC. Minister says of benefit to 330,000 people
• VAT Rise in rate from 21% to 23% and guarantee no further hikes in this rate during the lifetime of this government
• VAT Minister: Differential between here and Northern Ireland of just 3%, does not expect increase in cross border shopping
• CAPITAL ACQUISITIONS TAX Increase the current rate of CAT from 25% to 30%
• CAPITAL GAINS TAX Increase Capital Gains Tax from 25% to 30% after today
• DIRT Increasing DIRT from 27% to 30%
• PRSI Remove the remaining 50% employer PRSI relief on employee pensions
• PRSI Further Broaden base of PRSI to cover rental, investment and other forms of income from 2013
• DOMICILE LEVY Abolishing the citizenship condition for payment of the Domicile Levy
• DOMICILE LEVY This is to ensure that “tax exiles” cannot avoid it by renouncing their citizenship
• CARBON TAX Increase the Carbon tax on fossil fuels from the current €15 per tonne to €20 per tonne
• CARBON TAX will be applied to petrol and diesel from MIDNIGHT TONIGHT
• CARBON TAX Increase on other fuels will not come into effect until next May & will not apply to solid fuels
• PENSIONS Although Troika programme commits to a move for standard rate relief on pension contributions, no changes at this time
• HOUSEHOLD CHARGE €100 household charge as announced by the Environment Minister
• HOUSEHOLD CHARGE Confirms waiver for those on mortgage interest supplement and for those in certain ghost estates
• HOUSEHOLD CHARGE Confirms provision will be made for the charge to be paid in instalments
• MOTOR TAX Motor Tax Increases to generate €47 million of income
• ABSENTEEISM Removing the existing tax exemption for the first 36 days of illness benefit and occupational injury benefit
• CIGARETTES Pack of cigarettes to increase by 25 cent from midnight tonight
• CIGARETTES Increase to be applied to other tobacco on pro-rate basis
• ALCOHOL VAT increase will apply to alcohol but no other excide increase on alcohol
• ALCOHOL Promises legislation to stop low cost selling of alcohol in supermarkets and off licenses
• BETTING DUTY Will introduce legislation to extend the betting duty to remote betting
• Petrol up by 1.4 cent a litre.
• Diesel up by 1.6 cent a litre.
• Kerosene will go up by 14.40 per 1,000 litres (from May)
• MOTOR TAX – NEW RATES
Band A from 104 to 160(+56)
Band B from 156 to 225 (+69)
Band C from 302 to 330 (+28)
Band D from 447 to 481 (+34)