Budget was the clearest indication yet that a general election is around the corner. The government have probably already agreed a date in early November.
They will expect individuals to come out in their droves and vote for a government who gave increases to anyone who asked – well anyone who doesn’t own a business that is, more on that later.
Dave O’Brien, Head of Tax, Xeinadin
An increase in tax bands by €2k and tax credits by €125 means that the average single worker is going to benefit. Those earning less than €20k will not pay any tax, so our tax base is narrowing as opposed to widening. The help to buy scheme is being extended, as is maternity and paternity benefits. A newborn additional children’s allowance of €420 is also being introduced. So, if you are young working adult, who is buying a house and having children – this budget is for you!
There are some interesting changes to capital taxes, some which we will need to see the legislation to determine what effect they will have. Stamp duty on bulk purchases of houses has increased to 15% from 10% (if you buy over 10 houses in a 12-month period). Residential stamp duty has increased when a property is worth over €1.5m. The first €1m will be at 1%, the next €500k at 2% and anything above that at 6%. A substantial increase which will hurt those buying homes in more affluent areas. It will also hurt investors purchasing apartment blocks for rental – hopefully this doesn’t dampen this particular market.
