Minister for Finance, Pascal Donohoe presented his budget yesterday to reveal details of Budget 2018, as expected there were no giveaways however some notable points were;
Stamp Duty – increased on commercial property from 2% to 6%
USC – A modest reduction in the 2.5% (to 2%) and the 5% (to 4.75%) rate however the USC bands have not been changed and the entry point remains at €13,000
Income Tax – the standard rate band has been increased to €34,550 meaning €750 additional income can be earned before paying the higher rate of tax
— Earned income credit will increase by €200 to €1,150
CGT – the 7 year CGT exemption is being reduced to a 4 years for those who make capital gains and have held the asset the required time period.
Sugar Tax – A tax is being introduced from April 2018 on sugary drinks
Benefit in Kind – There will be a 0% BIK rate for employees who use fully electric cars
VAT – the lower 9% rate for tourism/hotel sector is to remain
Social Welfare – a €5 increase in all weekly social welfare payments
For more detail analysis please see attached our 2018 Budget summary. If you have any queries on this budget or any of your tax affairs please contact our Tax Director, Desi Foley.