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Budget 2013 What does it mean for you?

Budget 2013 What does it mean for you?. Property Tax. Residential Property Tax of 0.18% of the value of your home. ‘Mansion Tax’ of 0.25% on houses valued at more than €1m Takes affect 1 st July 2013 To be collected by Revenue Commissioners. Property Tax Contd.

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Budget 2013 What does it mean for you?

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  1. Budget 2013What does it mean for you?

  2. Property Tax • Residential Property Tax of 0.18% of the value of your home. • ‘Mansion Tax’ of 0.25% on houses valued at more than €1m • Takes affect 1st July 2013 • To be collected by Revenue Commissioners

  3. Property Tax Contd. • Market value assessed by owners or estate agents • Initial value set for 3 and half years. Therefore value will remain until the end of 2016. • Unpaid property tax will be collected by Revenue Commissioners

  4. Property Tax Contd. • Exemption will apply to first time buyers in 2013 and purchasers of new or previously unoccupied homes up to the end of 2016 • NPPR will cease from 1st January 2014 • Household charge will cease from 1st January 2013

  5. Pensions • Tax relief thresholds on pension contributions has been cut from €115,000 to €60,000 from 1st January 2014 • Tax relief still available at marginal rate • Withdrawal of up to 30% AVC’s will be subject to tax at the marginal rate for a 3 year period • Example: - John is 45 and runs his own consulting business. He is on salary of €100,000 and has been making the maximum pension contributions every year. Next year John will see his tax bill increase by €4,100 as a result of this change.

  6. PAYE Workers • PAYE workers will now be charged PRSI on other income • This includes rental profits, investment income and dividends from shares • Top Slicing relief is abolished for individuals receiving ex-gratia payments over €200,000

  7. PRSI • Weekly PRSI free allowance cut from €127 to Nil • Minimum PRSI contributions increased to €500 from €253 for self employed individuals

  8. Farmers • 25% rate and the special 100% rate of stock relief is to be extended for a further three years to 2015 • Definition of registered farm partnerships has been widened to include other production partnerships such as beef • This allows more farmers to avail of the enhanced 50% rate of stock relief • CGT relief on transfer of farmland

  9. Families • Child Benefit cut by €10 per month • Maternity Benefit taxable from July 2013 • College fees increased by €250 for each of the next 3 years • Motor Tax will increase – 1.6 ltr engine will increase from €478 to €514

  10. Capital Taxes • CGT and CAT increased to 33% • CAT threshold has been decreased by 10% • The above takes effect from midnight 5th December 2012

  11. Other Small Business News • DIRT increased to 33% • Reformation of 3 Year Corporation Tax Relief for Start Up Companies to allow unused credits to be carried forward • Cash receipts basis threshold for VAT increased from €1m to €1.25m

  12. Other Small Business News Contd. • Hauliers will now be able to avail of a percentage rebate on diesel from July 2013 • R&D Tax Credit amended by increasing the initial spend eligible to €200,000

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