The 2011 Budget has been announced by 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.
Thomas McGibney & Company 