Budget 2013 in Ireland. The main points for individuals, companies and entrepreneurs

THE IRISH GOVERNMENT’S Finance Team announced Ireland’s sixth austerity budget this afternoon.
Finance Minister Michael Noonan revealed how his department plans to increase the tax take to €1.1 billion in 2014, while Public Expenditure and Finance Minister Brendan Howlin explained how he plans to reduce spending by just under €2 billion.
Here are the main details from Michael Noonan’s speech:
Property Tax
-New Local Property Tax to be introduced on 1 July 2013;
-Exemptions will include: Any new or previously unoccupied homes purchased up to the end of 2016; First-time buyers in 2013; Those in unfinished estates for the next three years; Most of those exempt from Household Charge this year.
-The tax will be charged at 0.18 per cent of the market value for houses worth under €1 million;
-Houses valued at more than €1 million will be charged at 0.25 per cent of market value.
Other Property Measures
-Introduction of REITs (Real Estate Investment Trusts) to help NAMA offload its commercial property portfolio.

Cigarettes and Alcohol
-A bottle of wine will be more expensive from midnight because of a €1 rise in excise duty;
-Pints of beer and cider will jump by 10c;
-Excise duty on spirits will rise by 10c per standard measure;
-The duty on a packet of cigarettes will increase by 10c;
-Roll-your-own tobacco will increase by 50c per packet.

PRSI
-The minimum level of annual contribution from the self-employed will be raised from €253 to €500;
-Unearned income – for example rent receivable, investment income, dividends and interest on deposits and savings – will be subject to PRSI from 2014;
-The PRSI-free allowance has been abolished meaning a loss of €264 per year for employees.

Pensions
-From 2014, tax relief on pension contributions will only subsidise pension schemes under €60k per annum;
-The reduced rate of Universal Social Charge for those over 70 with an income of more than €60k will be discontinued from 1 January 2013;
-People with AVCs will be allowed to withdraw up to 30 per cent of their value at the individual’s marginal rate of tax.

Small Business and Jobs
-Noonan outlined the details of a 10 Point Tax Reform Plan which is designed to help the SME sector;
-The haulier industry will receive a rebate on diesel with effect from 1 July 2013;
-Approval for the CRO to extend its team of available reviewers to appeal credit decisions from lenders;
-VAT rate to remain at 9 per cent for the tourism industry.

Agriculture
-An extension of the 25 per cent rate and the special 100 per cent rate of stock relief until 2015;
-Introduction of a relief from capital gains tax arising on disposals of farm land for farm restructuring purposes.

Film Industry
-An extension of the Film Tax Relief Scheme to 2020;
-Reform of the same scheme to a tax-credit model in 2016.

Motoring
-The excise duty on petrol is to remain unchanged;
-Vehicle Registration scheme to change to a dual-system so next years cars will be either 131s or 132s;
-The rates of both VRT and motor tax across all categories will increase with effect from the 1 January 2013.

Other
-Carbon tax is to be extended to solid fuels on a phased basis over two years. A rate of €10 per tonne will apply from 1 May 2013 and increase to €20 the following year;
-Corporation tax is to remain unchanged;
-DIRT is to increase from 30 to 33 per cent;
-Capital Acquisitions Tax is to increase by 3 per cent to 33 per cent;
-The threshold to which Capital Acquisitions Tax applies is to be reduced by 10 per cent;
-From 1 July 2013, Maternity Benefit will be treated as taxable income but will be exempt from the USC.

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