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