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Key Points in the Budget 2015

Read the official summaries of the key budget measures and the detailed analysis from leading accountancy firms.

  • The finance minister announced a reduction in the higher rate of income tax from 41% to 40%.
  • Changes to the Employment and Investment Incentive (EII) raise company limits, increase the holding period by one year and include medium-sized companies in non-assisted areas and internationally traded financial services.
  • Noonan also announced that the Seed Capital Scheme will be re branded as ‘Start-Up Relief for Entrepreneurs’, and will be extended to individuals who have been unemployed up to two years.
  • Other tax measures include changes to the R&D Tax Credit scheme, where the 2003 base-year restriction will be removed from January 1 2015, at a cost of €50m to the government coffers.
  • The three-year corporation tax relief measure for start-ups on their trading income (and certain capital gains) will be extended to businesses setting up in 2015.
  • Noonan has also removed the restriction on capital allowances for the provision of specified intangible assets. The use of such allowances in any accounting period was heretofore restricted to a maximum of 80% of the trading income from the relevant trade in which the acquired assets are used. That restriction will now be removed, at a cost of €27m to the government.
  • The 12.5% corporation tax has not been changed, while the 9% VAT rate for the tourist sector has been retained.
  • The minister confirmed that Capital Gains Tax waiver that has been in place for the last number of years enabling purchasers of real estate to avail of a seven year exemption from CGT is to be phased out by year-end 2014.

View Department of Finance Summary

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View RSM Farrell Grant Sparks Analysis

View PWC Analysis