- Top rate of tax unchanged at 41%
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- Standard rate of tax remains at 20%
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- 2010 tax rates and bands:
- Single and widowed:
- €36,400 at 20%
- Balance at 41%
- Single/widowed qualifying for One Parent Family tax credit:
- €40,400 at 20%
- Balance at 41%
- Married couple with one income:
- €45,400 at 20%
- Balance at 41%
- Married couple with two incomes:
- €72,800 at 20% (€45,400 1st income, €27,400 2nd income)
- Balance at 41%
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- Exemption Limits:
- Single/Widowed 65 years of age or over - €20,000
- Married couple 65 years of age or over - €40,000
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| Medical Expenses |
- Health expenses relief will be granted at the standard rate for all expenses incurred from 1 January 2010
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| Income Levy |
- No liability if income < €15,208
- 2% applied to first €75,036
- 4% applied to the next €99,944
- 6% applied to amounts in excess of this
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| Effective Rate for High Earners |
- Effective rate to increase from 20% to 30%
- Entry-point for earners reduced to €125,000 with full restriction applying to €400,000 earners
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| Parking Levy |
- €200 charge on Employees for the use of car parking spaces in designated urban areas – onus on Employer
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| €200,000 Domicile Levy |
- Levy will apply to domiciled individuals who have worldwide incomes > €1m and Irish property > €5m
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| New anti-avoidance measures to disallow “arranged” loss to secure a “tax advantage” |
| Mortgage Interest Relief |
- Relief extended to 2017
- 75% of interest available for offset against rental income
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| Capital Acquisitions Tax |
- Class thresholds effective from 8 April 2009, and a tax rate increase to 25%
- Class A: Parent to child - €414,799
- Class B: Related persons - €41,481
- Class C: Non-related persons - €20,740
- Alignment of payment dates to Income Tax
- Secondary liability removed
- Surcharge on late filing between 5 and 10%
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Alternative Investment Funds
The sub-prime crisis that has led to a lack of confidence in the financial industry and the ceasing of inter-bank transfers between financial institutions have given rise to a crisis in the property market and has also spread to other areas of investment.
However, in recent years alternative investment funds have been launched that the credit crunch has not significantly impacted upon. We suggest you give consideration to the following areas for investments:
- Insight Currency
- European Residential Property
- Energy
- Water
- Commodities
- Emerging markets
Investments in these funds can be made directly or we can advise you on a fund that will offer you a selection of these options.
