Budget 2018

20 Oct

Budget 2018

Budget 2018 – Summary of the main changes

Standard Rate Income Tax Bands

The Standard Rate Income Tax Band will increase by €750 from 1st Jan 2018.

20% Rate                        40% Rate

Single Person                                                                             €34,550                         Balance

Married/Civil Partner(with one income)                            €43,550                         Balance

Married/Civil Partner(with two income)*                          €69,100                         Balance

Married/Civil Partners with two incomes can avail of €34,550 by 2 = €69,100 or €43,550 plus up-to €25,550 = €69,100 at 20% rate of income tax. Any balance will be taxed at 40%.

Capital Acquisitions Tax (No Change)

Group A : lifetime tax-free threshold applying to gifts and inheritances from parents to children is €310,000,

Group B lifetime tax-free threshold applying to gifts and inheritances made to parents, siblings, nieces, nephews or grandchildren is €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 €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 2018. The new top rate will be €243.30 per week.

DIRT

A reduced rate of Deposit Interest Retention Tax (DIRT) of 37%

Universal Social Charge 

(rates from 1st Jan 2018)

Employee              Self Employed

Income up to €12,012                                0.5%                    0.5%

Between €12,013 and €19,372                 2.0%                    2.0%

Between €19,373 and €70,044                4.75%                  4.75%

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 to €1,150

Stamp Duty on Commercial Property

The rate will increase from 2% to 6% from midnight 10th Oct 2018