Budget 2017 Summary
A summary of all the changes announced in Budget 2017 on Oct 11th 2016
Income Tax :
Farmers: Currently, farmers’ income is taxed on an average basis over five years. But from today there will be changes that will allow farmers, during years when profits are down, to pay tax based on their actual income for that year.
Self Employed – Earned Income Tax Credit increased to €950
Also Invalidity Pension eligibility will be extended to the self-employed from December 2017 and for Treatment Benefits, such as Dental, Optical and Hearing, from March 2017
Landlords : Deduction allowed on mortgage interest payments Increased from 75% to 80% with further reductions promised in future years until it is back to 100%.
Help to Buy Scheme (or First Time Buyers Grant) Upto €20,000 tax rebate available for FTB buying new homes under €600,00
See more details of the Help to Buy Scheme Here
VRT exemption for electric vehicles extended for 5 years, hybrid vehicles relief is extended to the end of 2018.
Rent a Room Scheme – tax free upper limit rises from €12k to €14k a year.
Tobacco: Pack of 20 cigarettes to rise by 50c
Alcohol : No change
Petrol/Diesel : No change
USC: Three bands reduced by 0.5% and the 18,668 band raised to 18.772 – full details of USC changes here
Capital Acquisitions Tax : (Inheritance Tax)
The threshold on Band A is to be raised from €280k to €310,000. Other thresholds will increase by 8%
Home Renovation Incentive : Retained until Dec 2018
DIRT: Reduced from 41% to 39%
Sugar Tax :Will be introduced From April 2018 – but details not yet decided
Corporation Tax- no changes
VAT : 9% rate retained for Tourism related activities
Motor Tax – no changes
Mortgage interest relief was due to be abolished entirely after 31 December 2017. It will now be retained beyond this date, on a tapered basis. Details are to be announced in Budget 2018.
Minimum Wage : Increase to €9.25 from €9.15 an hour – full details here
Childcare Subsidy : New Single Affordable Childcare Scheme with a universal subsidy for children aged 6 months to 3 years for all families who avail of Tusla registered childcare. Starting Sept 2017 . New Child Care Subsidy Details Here
The Home Carer Tax Credit: Increased by €100
State Pension : Increased by €5 a week from March 2017
Welfare Benefits : All benefits to increase by €5 a week from March 2017. (€5 applies to the full rate – people on lower rates will get less). Welfare Increases 2017 Here
Rent Allowance: / Personal rent contribution to be reduced from €30 to €10 per week for people aged 18-24 who are receiving Jobseeker’s Allowance of €100 per week and reduced from €30 to €20 for those who are receiving €144 and €160 per week – From January 2017
Back to Education Allowance to increase by €33 per week from €160 to €193 for jobseekers aged under 26 (Not until Sept 2017)
New €500 a year Cost of Education Allowance per annum for parents that are in receipt of Back to Education Allowance.
Income disregard for parents getting One Parent Family Payment and Jobseeker’s Transition to be increased to €110 from €90 per week – from January. (These two combined measures represent a weekly increase of up to €15 for those earning over €90 per week.)
Welfare Christmas Bonus : Increased to 85% this Christmas 2016. Christmas Bonus 2016 Figures Here
Child Benefit – No Change
Fuel Allowance : No Change
Prescription charges for medical card holders. The maximum an over-70 year old will have to pay in a month will fall from €25 to €20.
Medical cards – entitlement to a medical card will be extended to all children in receipt of the Domiciliary Care Allowance . (Approximately 10,000 children )