Budget 2011

The 2011 Budget was announced by Brian Lenihan, Minister for Finance on Tuesday 7 December 2010.

Income Tax Credits 2011

All personal Tax Credits are cut by 10%. The following rates apply for 2011.

	2011	2010
	€	€
Employee Tax Credit	1,650	1,830
Personal Tax Credits
- single	1,650	1,830
- married	3,300	3,660
Widowed person bereaved in year of assessment	3,300	3,660
One Parent Family Tax Credit	1,650	1,830
Home Carer Tax Credit	810	900
Dependent Relative Tax Credit	70	80
Incapacitated Child Tax Credit	3,300	3,660
Blind Persons Credit
- single	1,650	1,830
- married (both blind)	3,300	3,660
Additional credit for certain widows/(ers)	540	600
Widowed Parent Tax Credit:
year 1	3,600	4,000
year 2	3,150	3,500
year 3	2,700	3,000
year 4	2,250	2,500
year 5	1,800	2,000
Age Credit
- single	245	325
- married	490	650

Income Tax Bands 2011

The Standard Rate Tax Bands are also are cut by 10%. The following bands apply for 2011.

	2011	2010
	€	€
Single/Widowed	32,800	36,400

Married One Income	41,800	45,400
Married Two Incomes	65,600	72,800
Max income transferable between spouses	41,800	45,400

One Parent/Widowed Parent	36,800	40,400

Age Exemption Limits
Single	18,000	20,000
Married	36,000	40,000

Other Tax Measures

The other tax measures announced by the Minister were as follows:

	The Income Levy & Health are Levy to be replaced by a new Universal Social Charge.
	Nine tax relief schemes are to be abolished
	Restrictions are to be introduced on the carry forward of property-based capital allowances and Section 23 reliefs. Section 23 reliefs on a qualifying property are now only available against rental income from that property. Previously they had been available against all the taxpayer’s rental income.
	Capital Acquisitions Tax tax-free thresholds to be cut by 20%
	D.I.R.T. tax increases to by 2% from 25% to 27%.
	Employee PRSI & levy relief is to be abolished on Pension payments (PRSAs, AVCs).
	There is no change to 12.5% Corporation Tax rate.
	Employer PRSI relief on employer Pension contributions to be cut by 50%.
	Business Expansion Scheme is to be revamped & renamed – a new investment limit of €10 million will apply up to 2013.
	The scheme for Accelerated Capital Allowances for energy efficient equipment is to be extended.
	There is a major reform of Residential Stamp Duty with a 1% flat rate on transactions up to €1m. A rate of 2% will apply to transactions over €1m. All current Residential Stamp Duty exemptions & reliefs to be abolished. These changes apply from 8 December 2010, with transitional arrangements for contracts in progress, once they are completed by 30 June 2011.
	There are big changes to Relevant Contracts Tax (RCT). The RCT withholding tax rate is to be cut from 35% to 20% for contractors with an established tax compliance record. The existing rate of 35% will continue to apply to unregistered contractors.
	A standard rate of Travel Tax of €3 per journey will apply from 1 March 2011. This will be reviewed again at the end of 2011.
	Excise Duty on petrol is to rise by 4 cent per litre, and on auto diesel by 2 cent per litre. These changes apply from midnight on Budget Day.
	Internet betting to be subject to Betting Tax as applies to Betting Shops.

IPhones Photo
Its a Deal photo
Laptop

Thomas McGibney & Company

Chartered Accountants

Phone +353 (0)49 8549966

email tax@mcgibney.com

Registered to carry on audit work and authorised to carry on investment business by the Institute of Chartered Accountants in Ireland (ICAI). Chartered Accountants Ireland is the operating name of ICAI.