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Budget
2010
The following are the details of the Budget, announced by Minister
Brian Lenihan on 9 December 2009.
Income Tax
The
following Tax Credits are all unchanged for 2010.
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Tax Credits Tax Credit
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2010 €
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Single
Person
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1,830
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Married
Person
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3,660
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PAYE
Credit
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1,830
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Widowed
Person (no dependant children)
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2,430
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One
Parent Family Credit
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1,830
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Incapacitated
Child Credit Max
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3,660
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Blind
Tax Credit
Single
Person
One
Spouse Blind
Both
Spouses Blind
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1,830
1,830
3,660
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Widowed
Parent
Bereaved
in 2009
Bereaved
in 2008
Bereaved
in 2007
Bereaved
in 2006
Bereaved
in 2005
Bereaved
in 2004
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-
4,000
3,500
3,000
2,500
2,000
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Age
Tax Credit
Single/Widowed
Married
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325
650
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Dependent
Relative
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80
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Home Carer
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900
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Tax Rates and Tax Bands.
The tax rates remain unchanged at 20% (standard rate) and 41%
(higher rate). The tax
bands are also unchanged.
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2010
€
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Single
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36,400 @ 20%
Balance
@ 41%
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One Parent Family
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40,400 @ 20%
Balance @ 41%
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Married Couple one Income
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45,400 @ 20%
Balance @ 41%
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Married Couple – dual Income
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45,400 @ 20% with increase of 27,400 max.
Balance @ 41%
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Other
Tax Reliefs
The Tax Relief for Employing a
Carer is unchanged in 2010. This can be claimed at the marginal rate up to a maximum of €50,000.
Rent Tax Relief is also unchanged. This relief is only available at the 20%
rate. For under 55’s, the maximum relief is €2,000/€4,000
respectively for single/married couples. For over 55’s, the
maximum relief is €4,000/€8,000 respectively for single/married
couples..
Relief on service charges remains unchanged.
A maximum of €400 tax relief is granted (at 20% tax rate) in 2010
for service charges paid in the year 2009.
Rent-a-Room
Scheme
The maximum exemption from income tax under the Rent-a-Room
Scheme remains unchanged at €10,000. This applies to rent
received, where a person rents out a room or rooms in their home.
Exemption
Limits
The exemption limits
for persons aged 65 years and over remain at €20,000 for
Single/Widowed & €40,000 for Married Couples
Medical Expenses
Medical expenses relief remains at the standard
rate for expenses incurred from 1 January 2009. There is an
exception for nursing
home expenses, which continue to attract relief at the marginal
rate.
Income
Levy
The Income Levy rates and thresholds are
also unchanged.
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2010 Income Levy Thresholds 2010
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Rate
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Income up to €75,036
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2%
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Income from €75,037 to €174,980
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4%
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Income above €174,980
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6%
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Farmers can now avail
of Relief
from the income levy for expenditure
they incur to
comply with the requirements of the EU Nitrates Directive.
VAT
In
a welcome move, the standard rate of VAT drops from 21.5% to 21%
with effect from 1 January 2010. This reverses the increase of 0.5%
announced in the October 2009 Budget.
Start-up
Companies
The 3-year Corporation Tax and CGT exemption
scheme for start-up companies, introduced in 2009, has been extended
to new companies who start trading in 2010.
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