Budget Breakdown 2009.

Income Levy
2% up to €15,028.
4% up to €75,036
6% up to €174,980

Health Levy (to double)

4% up to €75,036

5% after that

PRSI Ceiling

Increased from €52,000 to €75,036

Mortgage Interest Relief:

On homes: Discontinued for all mortgages over 7 years old from May 1 2009.
On residential property investments: Reduced from 100% to 75%
Commercial property: no changes

Tax on Savings:

Savings, Life Assurance Policies, Investment Funds
Up from 23% & 26% to 25% and 28% respectively.
Applicable from midnight 7^th April.

Stamp Duty

1% on any policy received by an Insurer after June 1^st
Non-life assurance policies levy up from 2% to 3% where
Premiums are received after June 1^st.

Trade in scheme: If you trade in a property in payment or part payment for a new property then you pay no stamp. It will only apply once the traded in property is sold.

Capital Gains

Rate will increase from 22% to 25% for CAT, CGT, and inheritance/gifts.

Thresholds for CAT/Inheretence (immediate)

Group Old level New level
‘A’ (parents to child) €542,544 €434,000
‘B’ (related persons) €54,254 €43,400
‘C’ (non-related) €27,127 €21,700

Development Land:
20% will be abolished for 2009 assessments, replaced by

1. Persons marginal rate
2. or 25% Corporation Tax rate.

Losses will be dealt with on value basis to max of 20%

Capital Allowances

There will be a new relief on Intellectual Property. Allowances for private hospitals and nursing homes is terminated.

Excises

Diesel 5c per litre (including VAT)
Tobacco 25c on a pack of 20

VAT

VAT margin scheme for 2^nd hand cars, dealers will be charged VAT on the margin they make on the resale of any 2^nd hand cars from July 1^st. Before that they will be assessed on their full sales price.

Social Welfare

Jobseekers allowance for those <20 yrs old will be €100pwk
Christmas bonus is removed

Overseas Development Aid

Reduced by €100m

Healthcare & Children

Early childcare supplement halved to €41.50 to end of 09’ at that point
It will be abolished.

Reduction in pay awards €40m
HSE Demographic reshuffle €20m
Deferred costs of Childrens rights bill €1
Payroll Savings €150m

Departmental savings

On contributions to Environment/Heritage/Local Govt. €20m

Education & Science
[reduced University funding, increased efficiency in admin, & transport etc.] €27m

Agriculture, Food & Forestry
Reduced REPS scheme & estimating methods €45m

Community/Rural/Gealtacht affairs
Various savings €15

Transport
Reduction in road maintenance grants for NRA & payments to CIE €15m

Defence
Reduction in Chad mission spending & other economies €11m

Communications/Energy/Resources
Reduction in allocation to RTE/AnPost/Broadcasting Fund (€5m) total €10m

Other areas €27m

Incentivised retirement

Will be offered to those over aged 50

Civil Service Pension Levy

New arrangement
• First €15,000 of earnings exempt,
• 5% on next €5,000 of earnings,
• 10% on earnings between €20,000 and €60,000 and
• 10.5% on earnings above €60,000.