Budget 2015 can best be summarised as a “Late Late Show” budget with “something for everyone in the audience”. Those of you of a certain age were probably waiting for him to ask “Collette to roll it”.
Last year we welcomed Budget 2014 as the first signs of the encouragement of hope. This year we commend the Minister for continuing the process of restoring hope.
The “something’s for everyone” included:
- Top income tax rate reduced to 40%
- USC 2% and 4% rates reduced
- Pension Levy reduced to 0.15%
- 9% Tourist VAT Rate retained
- Housing Renovation Incentive
- Farmers Flat VAT Rate increased to 5.2%
- Water Charges tax relief introduced
As there is of course no “free lunch” the above are being partly financed by:
- Increase in cigarettes by 40c
- USC increased to 8% for income over €70k
- USC increased to 11% for self-employed income over €100k
Although the Budget is broadly to be welcomed it is unfortunate that the self-employed continue to get an annual kicking by an increase in USC to 11%.
Other items of note are:
- CGT 7 year exemption ceases 31/12/2014
- Foreign Earning Deduction widened
- Patent Box Scheme on the way
- Double Irish to be watered down over the next 5 years
Last year we closed with a quote from “The Boss” Bruce Springsteen about a Sunny Day. In line with Minister Noonan’s numerous references to roads in his closing comments, this year we close with the hope that the Minister’s road, like “Thunder Road” will lead us to the Promised Land.
“Heaven’s waiting on down the tracks
Oh-oh come take my hand
We’re riding out tonight to case the promised land
Oh-oh Thunder Road oh Thunder Road”
Contact Ned Gladney, Tax Director with your queries and comments.
Download more comprehensive Budget 2015 summary pdf and watch video by clicking link: GSW Budget 2015 Highlights