Budget 2019 Top Highlights

Budget 2019 Top Highlights

October 9, 2018

Budget 2019 Highlights


Budget 2019 was announced on Tuesday 09 October 2018 by Minister for Finance Paschal Donohoe.

Our team were providing live updates on Twitter and Facebook.

Here are their Top Highlights from Budget 2019.

Top Highlights from Budget 2019

1. CFC Regime

Ireland to introduce a Controlled Foreign Company Regime.

2. 9% VAT rate

The reduced rate of 9% VAT for the hospitality sector is to be increased to 13.5% for all areas apart from newspapers and sporting facilities.

3. USC

The 4.75% rate of USC will decrease by 0.25% to 4.5%. This affects people on incomes between €19,300 – €70,000.

4. Increase in 40% tax band

The 40% tax band rate will now start at €35,300.

5. Parental Leave

Increase of 2 weeks paid parental leave to every parent of a child under 1 year, eventually increasing to seven weeks.

6. Inheritance Tax

The threshold for Group A (parent to child) is to increase by €10,000 to €320,000

7. Social Welfare

Increase of social welfare by €5 per week from March 2019 and a Christmas bonus payment of 100% for 2018.

8. Employer PRSI

Higher rate threshold to increase from €376 to €386. Minimum wage to increase to €9.80.

9. Home Carer’s Credit

Home Carer’s Credit to increase by €300 to €1,500 per annum.

10. Landlords

100% mortgage interest relief for landlord’s in respect of residential lettings to be fast-tracked to be introduced on the 01 of January 2019. There is expected to be a grant scheme for those who wish to convert their homes in to smaller units which can then be rented out.

11. Key Employee Engagement Programme

There will be enhancements to the KEEP programme to retain skilled workers. Share options may now be granted up to 100% of salary and there will be a higher overall ceiling of options up to €300,000.

12. Exit Tax

Ireland is to introduce, from midnight on 09 October 2018, an exit tax of 12.5% to apply to any unrealised gains arising on the migration of residency of a company from Ireland or the transfer of assets out of the Irish CGT net.

13. Farming

Farmer’s income averaging will be extended to farms with off-farm trading income. The Young Trained Farmer Stamp Duty Relief which was due to expire at the end of this year will be extended for a further 3 years. The existing stock relief measures are extended for a further 3 years. A Future Growth Loan Scheme for SMEs and the agriculture and food sector is being launched providing up to €300m.

14. Start-Up Relief

The 3 year tax relief for start-up companies has been extended for certain start-up companies until the end of 2021.

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Watch our Budget Highlights Video on YouTube

Our Budget Highlights document will be available to download tomorrow.

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