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