- Overview
- Income Tax
- Tax credits, reliefs, rates & bands
- Universal Social Charge & Levies
- Local property tax
- Pensions
- Other Reliefs
- PRSI
- VAT
- Corporation Tax
- Capital Gains Tax
- Capital Acquisitions Tax
- Excises
- Stamp Duty
- VRT
Budget 2014 - Tax Credits, Reliefs, Rates & Bands
Tax Credits
The only change in relation to tax credits is the replacement of the One Parent Family Tax Credit with the Single Person Child Carer Tax Credit.
| Tax Credit | 2013 | 2014 |
|---|---|---|
| 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 | Abolished |
| 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 2013 | 3,600 | |
| Bereaved in 2012 | 3,600 | 3,150 |
| Bereaved in 2011 | 3,150 | 2,700 |
| Bereaved in 2010 | 2,700 | 2,250 |
| Bereaved in 2009 | 2,250 | 1,800 |
| Bereaved in 2008 | 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 |
Marginal Rate Reliefs
| Relief (allowed at the taxpayer's top rate of tax) |
2013 € Max |
2014 € Max |
|---|---|---|
| Employing a Carer | 50,000 | 50,000 |
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 | 2013 € |
2014 € |
|---|---|---|
| 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 (2013), Single Person Child Carer Tax Credit (2014) | 36,800 @ 20% Balance @ 41% |
36,800 @ 20% Balance @ 41% |
| Married or in a Civil Partnership, one Spouse or Civil Partner with Income | 41,800 @ 20% Balance @ 41% |
41,800 @ 20% Balance @ 41% |
| Married or in a Civil Partnership, both Spouses or Civil Partners 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 | 2013 € |
2014 € |
|---|---|---|
| Single or Widowed or a Surviving Civil Partner, 65 years of age & over | 18,000 | 18,000 |
| Married or in a Civil Partnership, 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.
Medical Insurance premiums
A new limit has been introduced on the relievable amount of medical insurance premiums for policies which are renewed or entered into on or after 16 October 2013. The relief per person covered by a policy will be either:
- Per adult, the lesser of the premium paid in respect of that individual, or €1,000 and
- Per child, the lesser of the premium paid in respect of that child, or €500.
A child for the purposes of this particular provision includes a student over 18 years and under 23 years who is in full-time education. Relief will continue to be granted at 20%.
Benefit-in-Kind
The basis of the BIK rate applicable to motor vehicles will change from miles to kilometres with effect from 1 January 2014.
| Business Travel Lower Limit | Business Travel Upper Limit | Percentage of original market value |
|---|---|---|
| Kilometres | Kilometres | Kilometres |
| - | 24,000 | 30% |
| 24,000 | 32,000 | 24% |
| 32,000 | 40,000 | 18% |
| 40,000 | 48,000 | 12% |
| 48,000 | - | 6% |
Single Person Child Carer Tax Credit
The One Parent Family Tax Credit will be abolished with effect from 31 December 2013 and replaced by the “Single Person Child Carer Tax Credit”.
The new tax credit will be granted to the primary carer who is either the parent, or to an individual who has a qualifying child in their custody and maintains that child for the whole or the greater part of a year of assessment. The credit will be granted for a child up to the age of 18 years or, if over 18 years, where they are in full-time education.
The credit can also be claimed in the case of a permanently incapacitated child where the incapacity occurred before age 21, or if older, while the child was in full time education.
The child must reside with the claimant for the whole or greater part (more than six months) of the year of assessment. If the child was born in the year of assessment, he or she must reside with the claimant for the greater part of the period from when he or she was born. A child can only be the subject of one claim, and a claimant can only make a claim for one child for a year of assessment irrespective of the number of children that reside with him or her.
The additional €4,000 standard rate band will continue to apply.
Start Your Own Business (SYOB)
An incentive for individuals who have been long-term unemployed for at least 15 months prior to starting their own business will provide a two-year exemption from the charge to income tax up to a maximum of €40,000 income per annum. Additional information will be provided in the Finance (No.2) Bill 2013.
Abolition of Top Slicing Relief
Top Slicing Relief will be abolished in respect of all ex- gratia payments, in respect of both redundancy and retirement, made on or after 1 January 2014. The basic and increased exemptions, or the alternative of Standard Capital Superannuation Benefit exemption are unaffected by this change.
Magdalen Laundries Payments
Ex-gratia payments made to beneficiaries under a scheme administered by the Minister for Justice, Equality and Defence in respect of women who were admitted to and worked in Magdalen Laundries will not be subject to income tax, and as a consequence Universal Social Charge will not apply.
In addition, they will not attract a charge to Capital Gains Tax or be treated as a gift or inheritance for the purposes of Capital Acquisitions Tax. The exemption applies to payments made on or after 1 September 2013.
DIRT
Deposit Interest Retention Tax and Exit Taxes on Life Assurance Policies and Investment Funds
A new higher single unified rate of 41% for DIRT and the exit tax that applies to life assurance policies and investment funds, will be introduced with effect from 1 January 2014. The previous differential rates based on payment frequency will no longer apply.