Summary of Budget 2012 Taxation Changes

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

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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