- Overview
- Income Tax
- Tax credits, reliefs, rates & bands
- Universal Social Charge & Levies
- Local property tax
- Pensions
- Other Reliefs
- PRSI
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- Corporation Tax
- Capital Gains Tax
- Capital Acquisitions Tax
- Excises
- Stamp Duty
- VRT
- Farmer Taxation
Budget 2013 - Tax Credits, Reliefs, Rates & Bands
Tax Credits
There are no changes to tax credits for 2013.
| Tax Credit | 2012 | 2013 |
|---|---|---|
| Single Person | 1,650 | 1,650 |
| Married person | 3,300 | 3,300 |
| PAYE Credit | 1,650 | 1,650 |
| Widowed person or Surviving Civil Partner (without dependant children) | 2,190 | 2,190 |
| One Parent Family Credit | 1,650 | 1,650 |
| Incapacitated Child Credit Max | 3,300 | 3,300 |
| Blind Tax Credit: | ||
| Single Person | 1,650 | 1,650 |
| Married or in a Civil Partnership- One Spouse or Civil Partner Blind | 1,650 | 1,650 |
| Married or in a Civil Partnership - Both Spouses or Civil Partners Blind | 3,300 | 3,300 |
| Widowed Parent: | ||
| Bereaved in 2012 | 3,600 | |
| Bereaved in 2011 | 3,600 | 3,150 |
| Bereaved in 2010 | 3,150 | 2,700 |
| Bereaved in 2009 | 2,700 | 2,250 |
| Bereaved in 2008 | 2,250 | 1,800 |
| Bereaved in 2007 | 1,800 | - |
| Age Tax Credit: | ||
| Single or Widowed or Surviving Civil Partner | 245 | 245 |
| Married or in a Civil Partnership | 490 | 490 |
| Dependent Relative | 70 | 70 |
| Home Carer | 810 | 810 |
Rent Tax Relief
The measures announced in Budget 2013 are unchanged:
Relief for rent credit will be withdrawn on a phased basis over 7 years by reducing the amount of rent that can be relieved at the standard rate of income tax as indicated in the following table.
| Tax Year | Single Under 55 | Single Over 55 | Widowed or a Surviving Civil Partner / Married or in a Civil Partnership, under 55 | Widowed or a Surviving Civil Partner / Married or in a Civil Partnership, over 55 |
|---|---|---|---|---|
| 2010 | 2,000 | 4,000 | 4,000 | 8,000 |
| 2011 | 1,600 | 3,200 | 3,200 | 6,400 |
| 2012 | 1,200 | 2,400 | 2,400 | 4,800 |
| 2013 | 1,000 | 2,000 | 2,000 | 3,600 |
| 2014 | 800 | 1,600 | 1,600 | 3,200 |
| 2015 | 600 | 1,200 | 1,200 | 2,400 |
| 2016 | 400 | 800 | 800 | 1,600 |
| 2017 | 200 | 400 | 400 | 800 |
| 2018 | 0 | 0 | 0 | 0 |
Claimants who were not renting at 7 December 2010 and who subsequently enter into a rental agreement will not be able to claim relief.
Marginal Rate Reliefs
| Relief (allowed at the taxpayer's top rate of tax) |
2012 € Max |
2013 € Max |
|---|---|---|
| Employing a Carer | 50,000 | 50,000 |
Standard Rated Reliefs:
(Allowed at 20% rate band)
Tax Rates and Tax Bands
The tax rates remain unchanged at 20% (standard rate) and 41% (higher rate).
The table below sets out the tax rates and bands.
| Personal Circumstances | 2012 € |
2013 € |
|---|---|---|
| Single or Widowed or Surviving Civil Partner, without dependant children | 32,800 @ 20% Balance @ 41% |
32,800 @ 20% Balance @ 41% |
| Single or Widowed or Surviving Civil Partner, qualifying for One Parent Family Tax Credit | 36,800 @ 20% Balance @ 41% |
36,800 @ 20% Balance @ 41% |
| Married or in a Civil Partnership, one spouse with Income | 41,800 @ 20% Balance @ 41% |
41,800 @ 20% Balance @ 41% |
| Married or in a Civil Partnership, both spouses with Income | 41,800 @ 20% with increase of 23,800 max. Balance @ 41% |
41,800 @ 20% with increase of 23,800 max. Balance @ 41% |
Exemption Limits
The exemption limits for persons aged 65 years and over remain unchanged:
| Personal Circumstances | 2012 € |
2013 € |
|---|---|---|
| Single/Widowed 65 years of age & over | 18,000 | 18,000 |
| Married Couple 65 years of age & over | 36,000 | 36,000 |
Marginal Relief may apply, subject to an income limit of twice the relevant exemption limit.
The above exemption limits are increased by €575 for each of the first two dependent children and by €830 for the third and subsequent children.
Tax Relief at Source – Mortgage Interest Relief
The measures announced in Budget 2013 are unchanged:
Interest paid on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012 will (subject to the exception below) qualify for tax relief up to the end of 2017 at the following general rates and thresholds -
First time buyers - The tax relief on interest paid on qualifying home loans is 25% for years 1 and 2; 22.5% for years 3,4 & 5 and 20% for years 6 and 7. The upper thresholds in respect of the amount of interest paid qualifying for tax relief are €20,000 for individuals who are married, in a civil partnership or widowed and €10,000 for individuals who are unmarried and not in a civil partnership. After years 7, the rates and thresholds for relief are as for non-first time buyers.
Non-first time buyers - The tax relief on interest paid on qualifying home loans is 15%. The upper thresholds in respect of the amount of interest paid qualifying for tax relief are €6,000 for individuals who are married, in a civil partnership or widowed and €3,000 for individuals who are unmarried and not in a civil partnership.
Exception
However, notwithstanding the rates of tax relief mentioned above, for individuals who purchased their first principal private residence on or after 1 January 2004 and on or before 31 December 2008, the rate of tax relief on the interest paid on the loan to purchase that property will, for the tax years 2012 to 2017, be 30%.
Taxation of Maternity Benefit
With effect from 1 July 2013, Maternity Benefit will be taxed in full. In line with all Dept of Social Protection (DSP) payments, USC will not apply.
Preferential loan rates
The specified rate in respect of home loans provided by an employer is being reduced from 5% to 4% with effect from 1 January 2013.
The specified rate in respect of non-home loans provided by an employer is being increased from 12.5% to 13.5% with effect from 1 January 2013.
Top Slicing Relief
Top Slicing Relief will no longer be available for persons who receive an ex-gratia payment, excluding statutory redundancy, where the amount is €200,000 or more. This provision has effect for payments made on or after 1 January 2013.
Revenue Job Assist and Employer Job (PRSI) Incentive Scheme
A scheme called the ‘Plus One Initiative’ will replace both the Revenue Job Assist and Employer Job (PRSI) Incentive Scheme. Full details of this change will be announced at a later date.
DIRT
Deposit Interest Retention Tax and Exit Taxes on Life Assurance Policies and Investment Funds
The rate of retention tax that applies to deposit interest, together with the rates of exit tax that apply to life assurance policies and investment funds, are being increased by 3 percentage points in each case and will now be 33% for payments made annually or more frequently and 36% for payments made less frequently than annually. The increased rates will apply to payments, including deemed payments, made on or after 1 January 2013.