Budget 2014 - Overview

This is one of the more positive budgets that we have seen in recent years. There are a number of job creation initiatives, especially targeted at the construction sector, which are to be welcomed.

The much heralded increase in capital gains tax and capital acquisitions tax did not materialise. The reintroduction of a reinvestment relief for entrepreneurs is a further welcome development.

The budget included a number of negative tax consequences for savers, from increasing the rate of DIRT and exit taxes on life policies and funds, through an increased pension fund levy.

The retention in the reduced rate of VAT for the tourism and hospitality sector must be welcomed. For vintners and publicans this will be offset somewhat by the increase in excise duty.

Removing the Employment & Investment Incentive from the high earners restriction should support further investment in start-up companies.

The introduction of a “Home Renovation Incentive” is a step in the right direction, but may need to go further to level the playing field between compliant and non compliant builders.

Increasing the threshold for cash accounting for VAT to €2m will help SME’s in cash flow difficulties.

The announcement that all farm reliefs are to be reviewed to ensure that they are targeted properly is hopefully a further positive step for this key industry.

These reliefs and incentives are being financed by cuts to social welfare and health expenditure.