The Minister of Finance Paschal Donohue announced the Budget for 2019 on 9th October 2018.
The main points are:
- 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.
- 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%.
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.
- 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.