Budget Breakdown 2009.
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
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 7th April.
1% on any policy received by an Insurer after June 1st
Non-life assurance policies levy up from 2% to 3% where
Premiums are received after June 1st.
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.
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
20% will be abolished for 2009 assessments, replaced by
- Persons marginal rate
- or 25% Corporation Tax rate.
Losses will be dealt with on value basis to max of 20%
There will be a new relief on Intellectual Property. Allowances for private hospitals and nursing homes is terminated.
Diesel 5c per litre (including VAT)
Tobacco 25c on a pack of 20
VAT margin scheme for 2nd hand cars, dealers will be charged VAT on the margin they make on the resale of any 2nd hand cars from July 1st. Before that they will be assessed on their full sales price.
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
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
Various savings €15
Reduction in road maintenance grants for NRA & payments to CIE €15m
Reduction in Chad mission spending & other economies €11m
Reduction in allocation to RTE/AnPost/Broadcasting Fund (€5m) total €10m
Other areas €27m
Will be offered to those over aged 50
Civil Service Pension Levy
• 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.