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.
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.
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.
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.
View our highlights video:
Our Budget Highlights document will be available to download tomorrow.