Budget 2013

What does it mean for you?

Property Tax

• Residential Property Tax of 0.18% of the value of your home.

• ‘Mansion Tax’ of 0.25% on houses valued at more than €1m

• Takes affect 1st July 2013• To be collected by Revenue Commissioners

Property Tax Contd.

• Market value assessed by owners or estate agents

• Initial value set for 3 and half years. Therefore value will remain until the end of 2016.

• Unpaid property tax will be collected by Revenue Commissioners

Property Tax Contd.

• Exemption will apply to first time buyers in 2013 and purchasers of new or previously unoccupied homes up to the end of 2016

• NPPR will cease from 1st January 2014• Household charge will cease from 1st January

2013

Pensions• Tax relief thresholds on pension contributions has been

cut from €115,000 to €60,000 from 1st January 2014• Tax relief still available at marginal rate• Withdrawal of up to 30% AVC’s will be subject to tax at

the marginal rate for a 3 year period• Example: - John is 45 and runs his own consulting

business. He is on salary of €100,000 and has been making the maximum pension contributions every year. Next year John will see his tax bill increase by €4,100 as a result of this change.

PAYE Workers

• PAYE workers will now be charged PRSI on other income

• This includes rental profits, investment income and dividends from shares

• Top Slicing relief is abolished for individuals receiving ex-gratia payments over €200,000

PRSI

• Weekly PRSI free allowance cut from €127 to Nil

• Minimum PRSI contributions increased to €500 from €253 for self employed individuals

Farmers• 25% rate and the special 100% rate of stock relief

is to be extended for a further three years to 2015

• Definition of registered farm partnerships has been widened to include other production partnerships such as beef

• This allows more farmers to avail of the enhanced 50% rate of stock relief

• CGT relief on transfer of farmland

Families

• Child Benefit cut by €10 per month• Maternity Benefit taxable from July 2013• College fees increased by €250 for each of the

next 3 years• Motor Tax will increase – 1.6 ltr engine will

increase from €478 to €514

Capital Taxes

• CGT and CAT increased to 33%• CAT threshold has been decreased by 10%• The above takes effect from midnight 5th

December 2012

Other Small Business News

• DIRT increased to 33%• Reformation of 3 Year Corporation Tax Relief

for Start Up Companies to allow unused credits to be carried forward

• Cash receipts basis threshold for VAT increased from €1m to €1.25m

Other Small Business News Contd.

• Hauliers will now be able to avail of a percentage rebate on diesel from July 2013

• R&D Tax Credit amended by increasing the initial spend eligible to €200,000