December 6th 2011 – Day Two of Budget 2012 – Taxation
These are the main points of the second day of Budget 2012
This article will be updated as the details are announced.
Income Tax – No Increases , No Changes to Tax Bands or Tax Credits
Universal Social Charge – From January 1st the exemption level on the charge will rise from €4,004 to €10,036. No USC to be charged on people with total incomes below 10036.
Details of USC changes here
Carbon Tax – Increased tonight to €20 per tonne on Petrol and Diesel. (Increase of 1.5c per litre from midnight tonight ) No increase on heating oil until May 2012. No extra carbon tax on solid fuel.
Car Tax Increases – more details – upto 54% Increases !
Mortgage Interest Relief – An increased rate of mortgage interest relief to 30% for First Time Buyers who took out mortgage between 2004 and 2008.
Extend 25% Mortgage Interest Relief to first-time buyers for a final 12 months up until end of 2012. (It was due to be cut in Jan 2012)
VAT Increase from 21% to 23% and guarantee no further hikes in this rate during the lifetime of this government.
Household Charge confirmed at €100 in 2012 – more details of Household Charge here
Duty on Cigarettes – adding 25c per pack of 20 from tonight. No increases on Alcohol.
CAPITAL ACQUISITIONS TAX Increasing from 25% to 30%
CAPITAL GAINS TAX Increasing from 25% to 30% after today
DIRT Increasing from 27% to 30%
CAPITAL GAINS TAX – Property purchased from midnight tonight and end of 2013 -held for at least 7 years – is exempt from Capital Gains
STAMP DUTY for commercial property transfers to be reduced from current rate of 6% to a flat rate of 2% from midnight tonight. This lower rate applies to all non-residential property, including farmland as well as commercial and industrial buildings
PRSI : Remove the remaining 50% employer PRSI relief on employee pensions
Further Broaden base of PRSI to cover rental, investment and other forms of income from 2013
Does the 30% relief on mortgage interest apply for the first seven years? How long should the relief for a house bought in November 2006 last assuming there is no further changes in the future?
I’d like to know the answer to that too. Is it still applied on a sliding scale as time progresses? Or is it just set to 30%?
Pat – see this post – it may answer your question ? https://www.moneyguideireland.com/mortgage-interest-relief-trs-budget-2012-changes.html
it looks like it lasts till 2017 (from 2012) – it’s not backdated.