Monday 18 December 2017

Analysis: Ten tax takeaways from Budget 2018

Sugar tax Photo: PA
Sugar tax Photo: PA

Clare Fitzgerald and Shane Roe

Budget 2018 won't have a significant impact on net income.

There have been very few income tax changes and the effect of the changes announced will be minor.

Tax manager Shane Roe and Associate Director Clare Fitzgerald, both from Grant Thornton, bring us the Budget 2018 tax highlights.

1) Lower rate tax band increased by €750 -  worth €12.50 per week in net income

2)  USC rates adjusted - worth up to €14.87 per month in net income

3) Earned income tax credit for the self employed increased by €200

4) Home carer credit for one income families increased by €100  

5) Excise duty on a packet of 20 cigarettes increased by 50 cents from midnight tonight

6) New tax sugar on sugar sweetened drinks. 30 cent per litre if sugar content exceeds 8 rams per 100ml, 20 cent per litre if sugar content is between 5 and 8 grams per 100 ml

7) VAT rate on sun bed services increased from 13.5pc to 23pc

8) CGT exemption period reduced from 7 years to 4 years to encourage investors to bring property to market

9) New income tax deduction for pre letting expenses to encourage property owners to make residential properties available to rent

10) VAT rate on 9pc for tourism and similar services to retained

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