Tax 2008

Income Tax

Tax Rates Single Single Parent Married Couple (One Income) Married Couple (Two Incomes)
20% First €35,400 First €39,400 First €44,000 First €70,800 *
42% Balance Balance Balance Balance

*This increase will be the lower of €26,400 or the income of the spouse with the lower income - this income is not transferable between spouses.

Tax Credits

 

1. Personal Credits: Single / Married:
1,830 / 3,660
Widowed Person, no children: 2,430
Widowed with Dependent Children: 4,000
Single Parent family: 1,830
2. Home Carer's Credit - Max:   900
3. PAYE Credit:   1,830
4. Age Tax Credit: Single / Married (65 years plus)   325/650
5. Blind Tax Credit: Single Spouse / Both:   1,830/3,660
6. Incapacitated Person (employing a carer) (max)   50,000
7. Incapacitated Child   3,660
8. Household Service Charges   400
  New Tax Exemption for childminder (minding up to 3 children in own home) max 15,000

 

Income Exemption Limits

Age under 65 Years: Single / Married: 5,210/10,420
Age over 65 Years: Single / Married: 20,000/40,000

The above limits are increased by €575 for each of the first two dependent children and by €830 for the third and subsequent children.

Benefit-In-Kind

Company Cars

Benefit in Kind threshold increased to €250.

Preferential Loans

Residence Related: 5.5%
Other: 13%

Mortgage Interest

Maximum Allowance at standard rate Non-First Time Buyers First Time Buyers (first 7 years)
Single Person €3,000 €10,000
Married Couple/Widow €6,000 €20,000

Note: Mortgage Interest restored for residential property investors.

Corporation Tax 12.5%

Value Added Tax

Standard Rate: 21%
Reduced Rate: 13.5%

Capital Gains Tax

Standard Rate: 20%
Development Land residential 20%
Development Land non-residential 42%
Annual Exemption per person: €1,270

Capital Acquisitions Tax

Tax Rate (applies to gifts and inheritances) 20%

Threshold before Tax Payable

Relationship to Donor/Testator Threshold
1 Son/Daughter €521,208
2 Parent/Brother/Sister/Nephew/Niece/Grandchild €52,121
3 Any other person €26,060
Notes:
1 Private residence (3 years prior residence qualification) Exempt
2 Business/agricultural Asset Relief 10% of value
3 Small Gift Allowance €3,000

Stamp Duty

Residential Property First Time Owner Occupier (new/Second Hand) Other Purchaser / Investor
Price Rate Rate
Up to €125,000 Exempt Exempt
€125,001 - €100,000,000 Exempt Exempt per 1 above, then 7% on excess
Over €100,000,000 Exempt Rates for 1 and 2 above apply then 9% on excess of €1M

Non Residential Property

Price Rate
Up to €10,000 Exempt
€10,001 - €20,000 1%
€20,001 - €30,000 2%
€30,001 - €40,000 3%
€40,001 - €70,000 4%
€70,001 - €80,000 5%
€80,001 - €100,000 6%
€100,001 - €120,000 7%
€120,001 - €150,000 8%
Over €150,000 9%

Capital Duty of 0.5% has been abolished

Where a parent transfers a site to a child for his private residence:
Where site value is equal to or less than €500,000

Patrick S. Cahill Solicitors

Property - Disputes - Business

Patrick S Cahill Solicitors
Heritage House,
Dundrum Office Park,
Dundrum,
Dublin 14,
Ireland

Tel: +353-1-2980707
Fax: +353-1-2980808
Email: legal@pscahill.com