Budget 2020 has been published

Budget 2020 was announced by Finance Minister Pascal O Donohoe on 8th October 2019.

Income Tax

Budget 2020 brought no changes to the tax and universal social charge bands and all tax credits remained the same apart from:

  • Earned Income tax credit which increased to €1,500 from €1,350.
  • Home carer tax credit which increased to €1,600 from €1,500.

Capital Acquisition Tax

The Group A band has increased to €335,000 to €320,000.

This takes effect from 9th October 2019.

Stamp Duty

Stamp duty on the purchase or transfer of non-residential property (including land) is increased from 6% to 7½%.

This takes effect for conveyances or transfers of non-residential property and leases that are executed on or after 9th October 2019. However if a binding contract is in place at this date, the stamp duty will continue to be 6% as long as the conveyance/transfer/lease is executed before 1st January 2020.

Employment and Investment Incentive (EII)

Full income tax relief (40%) will be available in the first year instead of 30% tax relief in first year and 10% after year three.

The annual investment limit has increased to €250,000 from €150,000. An annual €500,000 annual investment limit has been introduced for those who invest for a minimum of ten years.

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