The Budget was announced on Tuesday 13th November and the headline news was it was a budget with ‘something for everyone’. Michael Noonan proudly announced the only tax going up was the 50 cent increase in a pack of cigarettes.
Income will be increasing in 2016 as promised and the main tax reasons for that are as follows :
- USC changes with the bands increasing and the rate decreasing.
- Increase in carers credit for those married with children and one spouse on low income.
- New tax credit for the self-employed called the earned income
- With PRSI, there is a new tapered system for those earning between €352.02 and €424 weekly which is being introduced to effectively reduce the PRSI charge for the lower income earners.
- Employers PRSI is now being charged at the lower rate of 8.5% on weekly wages from €376.00.
Inheritance tax from Oct 2015 will have the son/daughter tax free exemption increased from €225,000 to €280,000 which is in response to the increase in capital values in the last few years of assets.
From 1 January, a reduced capital gains tax rate of 20pc will apply to the sale of all or part of a business with an overall limit of €1m in chargeable gains.
Here is a summary of the tax measures introduced.
For a detailed view of Budget 2016, click here.
For tax advice on how this budget effect you contact us at
071 91 69647 or email at info@mcdowellaccountants.ie