As previously announced in the Medium-Term Fiscal Statement, the Government is planning a €3.8 billion adjustment in Budget 2012, which will include €1.6 billion in tax measures and €2.2 billion in spending cuts.
The tax highlights:
- No changes in income tax rates, allowances and bands.
- Dirt tax has increased from 27% to 30%.
- Tax based allowances will not be available for carry forward from 1st January 2015.
- The standard vat rate will increase to 23%. There is no change in the 13.5%/ 9% rates.
- Capital Gains tax has increased to 30% from 25%.
- Tax payable on gifts and inheritances has increased to 30% from 25%
- The exempt thresholds on gifts/ inheritances between parent and child has reduced to €250,000.
- Stamp duty payable on commercial transactions is reduced to 2% flat rate.
- The state will not pay sick pay benefit for the first 36 days.
Click to download budget highlights and watch video.
Please contact Maura Duffy or Mark Butler for further information.