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.
http://www.bannon.ie/wp-content/uploads/bannon-commercial-property-2-1.png00Kat Donohuehttp://www.bannon.ie/wp-content/uploads/bannon-commercial-property-2-1.pngKat Donohue2014-10-15 15:26:352017-04-07 16:56:41Key Points in the Budget 2015