BUDGET 2014

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MP900387623[1]Michael Noonan has announced the Budget for 2014

 The following remained unchanged from 2013:

  • Tax rates and tax bands
  • Exemption limits for persons 65 years and over
  • Marginal rate relief for a person employing a carer
  • All tax credits except for One Parent Family Tax Credit which has been replaced by the Single Person Child Carer Tax Credit 
  • Universal Social Charge bands and rates.
  • PRSI
  • RCT
  • Capital Acquisitions Tax

 VAT

  • The 9% reduced Vat rate is retained
  • Increase in the farmers flat rate addition from 4.8% to 5% from 1st January 2014.
  • Cash Accounting threshold has been increased to €2 million.
  • Businesses which have not paid for supplies (in full or part) within a six month period will be required to repay the Vat claimed on those supplies.
  • A quick reaction mechanism is being set up to allow the revenue to apply an emergency and temporary reverse charge measure to certain goods or services to address sudden and massive Vat fraud
  • Measures are being introduced to allow Revenue to procure specific information which they believe might assist in identifying Vat fraud.

DIRT

  • From 1st January 2014 the Deposit Interest Retention Tax and exit taxes from life insurance policies and investment funds is 41%

START YOUR OWN BUSINESS

  • Incentive for individuals who have been unemployed for at least fifteen months prior to starting their own business.
  • Will provide a two year exemption from income tax up to a maximum of €40,000 income

HOME RENOVATION INCENTIVE SCHEME

  • The scheme runs from 1st January 2014 to 31st December 2015
  • It provides for tax relief for homeowners by way of a tax credit of 13½% on all qualifying expenditure on repair,renovation or improvement work carried on a principal private residence.
  • The tax credit is spread over two years.
  • The work must cost a minimum of €5,000 ( tax credit €675) and the maximum is €30,000 (tax credit €4,050).
  • Homeowners must be up to date with LPT and household charge liabilities.

CAPITAL GAINS TAX

  • The property purchase incentive has been extended to 31st December 2014
  • CGT retirement relief is being extended to disposals of leased land where the land is leased long term and the subsequent disposal is to a person other than a child of the owner of the land.

 

 More details on all measures will be included in the Finance Bill when it is published.