We have taken a snap shot of the Budget and highlighted a number of key changes we believe are important in summary:

Pension Cahnages and Pensions Levy Following Budget 2015

The Pensions Levy of 0.6% p.a. introduced in 2011 for 4 years to fund the Jobs Initiative. Last year the Minister confirmed that the additional levy of 0.15% would be taken for 2014 and 2015 would expire at the end of 2015. Thankfully the levy is now zero.

Social Welfare Pensions

A €3 per week increase in all pension payments. This means an increase on a State Pension (Contributory) from €230.30 per week to €233.30 per week from 1 January 2016.

Tax Relief - Employer Contributions

Employer Pension Contributions - Corporation Tax relief will continue to be available on employer pension contributions. No change.

Tax Relief - Employee Contributions

This will remain unchanged.

Income Tax Rate

No increase in the standard rate bands or change to the income tax rates.

Tax credit for the Self-employed

A €550 per year tax credit has been introduced for the self-employed. This is to due to increase in 2017 and 2018 if the government is returned to power

Universal Social Charge (USC)

The entry threshold to USC will be increased from €12,012 to €13,000.

 The rates of USC have also been reduced downwards as follows:

€0 to €12,012:                                        1.0% (reduced from 1.5%)

€12,012 to €18,668:                                3.0% (reduced from 3.5%)

€18,668 to €70,044:                                5.5% (reduced from 7%)

€70,044 to €100,000:                              8% (this didnt change).

PAYE income in excess of €100,000 will also continue to pay USC at 8% with Self-employed income in excess of €100,000 to continue to pay USC at 11%.

Medical card holders and individuals aged 70 years and over whose aggregate income does not exceed €60,000 will now pay a maximum rate of 3% USC.
 

DIRT Tax, Exit Tax and Insurance Levy

No changes to DIRT and Exit Taxes on Life Assurance Policies and Investment Funds. The Insurance Levy on Protection policies and investment/savings policies remains unaltered.

Corporate Deposits

The current corporate exit tax rate remains at 25%.

Capital Acquisition Tax (CAT)

The gift tax (Group A) Threshold has been increased from €225,000  to €280,000. The rate of Capital Acquisition Tax remains at 33%.

Capital Gains Tax (CGT)

Capital Gains Tax rate remains at 33%. A revised Capital Gains Tax relief for entrepreneurs is being introduced from 1 January 2016 which will apply a reduced Capital Gains Tax rate of 20% to the disposal in whole or in part of a business up to an overall limit of €1 million in chargeable gains.