
Budget 2017
Not much surprises in Budget 2017. I’ve set out below some of the main changes announced in Michael Noonan’s Budget speech.
Capital Acquisitions Tax
Group A : lifetime tax-free threshold applying to gifts and inheritances from parents to children is being raised from €280,000 to €310,000,
Group B lifetime tax-free threshold applying to gifts and inheritances made to parents, siblings, nieces, nephews or grandchildren is being raised from €30,150 to €32,500.
Group C lifetime tax-free threshold applying to gifts and inheritances made to all others (except spouses and civil partners who are exempt) is being raised from €15,075 to €16,250.
(The thresholds apply to all gifts and inheritances received since 5th Dec 1991.)
State Pension
The state pension will rise by €5 per week from March 2017. The new rate will be €238.30 per week.
DIRT
A reduced rate of Deposit Interest Retention Tax (DIRT) of 39% was announced with provision to be made in legislation for further reductions of 2% per annum over the next 4 years until it reaches 33% in 2020.
Universal Social Charge
(rates from 1st Jan 2017)
Employee Self Employed
Income up to €12,012 0.5% 0.5%
Between €12,013 and €18,772 2.5% 2.5%
Between €18,773 and €70,044 5% 5%
Between €70,045 and €100,000 8% 8%
Income in excess of €100,000 8% 11%
Earned Income Tax Credit (Self Employed )
It will be increased from €550 to €950