6th December 2011
Mr Michael Noonan announced details of tax adjustments.
Corporation Tax
- Corporation tax to be kept at 12½%
Income tax
- no change in rates, bands or credits
Universal Social Charge
- Increase of lower exemption from €4,004 to €10,036
- Move USC to a cumulative system
Illness Benefit
- The tax exemption currently applicable to Illness Benefit is abolished with effect from 1 January 2012.
Stamp Duty
- Rate of stamp duty for the transfer of non residential property reduced to 2%
- The current exempt threshold has been abolished
- Consanguinity relief on transfer of non residential properties to end in 2014
Capital Gains Tax
- Capital Gains Tax increased to 30% from midnight 7 December 2011
- A new incentive relief from CGT is being introduced for those who purchase property between now and end of 2013 and hold it for seven years. Where such property is held for more than seven years the gains accrued in that period will not attract CGT.
Capital Acquisitions tax
- Capital Acquisitions tax incresed to 30%
- Group A tax free threshold is being reduced from €332,084 to €250,000
- Group B and Group C will remain the same as last year ar €33,208 and €16,604 respectively.
VAT
- Standard rate of Vat increased to 23%
DIRT
- Has been increased to 30%
Property legacy reliefs
- Section 23 reliefs maintained for those with under €100,000 income
- Property relief surcharge of 5% to apply to large investors
More detailed explanations of the above will be published in the Finance Act