Budget 2011 Latest

The 2011 Budget has been announced by Brian Lenihan, Minister for Finance.

Budget 2011 Cuts - Brian Lenihan Minister for Finance

The key tax measures announced by the Minister in his Budget Speech are as follows:

  • Income Levy & Health Levy to be replaced by a new Universal Social Charge.
  • Tax Bands and Credits to be cut by 10%
  • Nine tax relief schemes are to be abolished
  • Restrictions on the carry forward of property-based capital allowances and Section 23 reliefs.
  • Capital Acquisitions Tax tax-free thresholds to be cut by 20%
  • D.I.R.T. tax increases to by 2% from 25% to 27%.
  • Pension Tax relief employee PRSI & levy relief to be abolished.
  • No change to 12.5% Corporation Tax rate.
  • Employer PRSI relief on employer Pension contributions to be cut by 50%
  • Business Expansion Scheme to be revamped & renamed – a new investment limit of €10 million will apply up to 2013.
  • Accelerated Capital Allowances scheme for energy efficient equipment is to be extended.
  • Major revamp of Residential Stamp Duty with a 1% flat rate on transactions  up to €1m, 2% thereafter. All current Residential Stamp Duty exemptions & reliefs to be abolished – changes apply from tomorrow 8 December, transitional arrangements for contracts in progress, once they are completed by 30 June 2011.
  • Major changes to Relevant Contracts Tax with a cut from 35% to 20% for contractors with an established compliant tax record. Existing rate of 35% will continue to apply to other contractors.
  • Travel Tax to be cut to €3 from 1 March 2011, subject to review at end of 2011.
  • Excise Duty rises of cent per litre on petrol, 2 cent per litre on auto diesel, applying from midnight tonight.
  • Internet betting to be subject to Betting Tax as applies to Betting Shops.

The Minister’s speech is now online.