The Minister of Finance Paschal Donohue announced the Budget for 2019 on 9th October 2018.
The main points are:
Income tax
- Standard rate band increased from
€34,550 to €35,300 for a single or widowed person.
€38,550 to €39,300 for a single or widowed person qualifying for a Single Person Child Carer credit.
€43,550 to €44,300 for married or in civil partnership couple with one income.
€69,100 to €70,600 for a married or in a civil partnership with the a maximum of €26,300 for the second partner.
- Earned Income tax credit increased from €1,150 to €1,350.
- Home carer tax credit increased from €1,200 to €1,500.
- The second band of Universal Service Charge increased from €19,372 to €19,874.
- The rate of deduction has decreased from 4.75% to 4.5% for the third band of USC which is €19874.01 to €70,044.
Mortgage Interest Relief
From 1st January 2019 landlords can deduct 100% of loans used to purchase or improve the property that is let out.
Capital Acquisitions Tax
The group A band has increased from €310,000 to €320,000. This band covers gifts and inheritances from parent to child.
This increase applies from 10th October 2018.
Vat
- Tourism – Vat rate on tourism activities (services and goods) will be increased from 9% to 13.5% from 1st January 2019.
- The Vat rate on newspapers and sports facilities will remain at 9%.
- The Vat rate on electronic newspapers is being reduced from 23% to 9%.
Agri-Taxation
The income averaging regime is being extended to include farmers and/or their spouses who have off farm income.
Benefit in Kind
The exemption from benefit in kind for employer provided electric cars or vans is being extended to 31st December 2021.
Social welfare
- Self employed to become eligible for Job seekers Benefit. This will be introduced in Quarter 4 in 2019.
- New social insurance parental benefit payment for employees and the self-employed to be paid for two weeks for each parent. this will commence in November 2019.