- Top rate of tax remains at 41%
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- Standard rate of tax remains at 20%
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- 2011 tax rates and bands have been reduced:
- Single and widowed:
- €32,800 at 20%
- Balance at 41%
- Single/widowed qualifying for One Parent Family tax credit:
- €36,800 at 20%
- Balance at 41%
- Married couple with one income:
- €41,800 at 20%
- Balance at 41%
- Married couple with two incomes:
- €64,600 at 20% (€41,800 1st income, €23,800 2nd income)
- Balance at 41%
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- Exemption Limits:
- Single/Widowed 65 years of age or over – €18,000
- Married couple 65 years of age or over – €36,000
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| Bankers Bonus |
- A 45% charge on performance-related bonuses in excess of €20,000, received by employess of financial institutions covered by the Bank Guarantee Scheme
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| Universal Social Charge |
- No liability if income < €4,004
- 2% applied to first €10,036
- 4% applied between and above and €16,016
- 7% applied to amounts over €16,017
- 10% over €100,000 – self-employed
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| Relief for Energy-Efficiency Works |
- Expenditure to improve the heating and efficiency of private homes will qualify for relief under new provisions. Relief is allowed @ 20%, subject to relevant limits and determined by marital status
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| Third Level Fees |
- The tax relief has been reduced to disallow the first €2,000 on full-time courses and €1,000 for part-time courses
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| Rent Relief |
- Further reductions in the value of rental credit:
- Single under 55 – €1,600
- Over 55 – €3,200
- Widowed/Married under 55 – €3,200
- Widowed/Married over 55 – €6,400
- The relief will be phased out by 2018
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| Termination Payments |
- A new Lifetime limit of €200,000 for termination payments has been introduced
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| Childcare |
- If the gross annual income from the provisions of childcare services does not exceed €15,000 in 2011, the income is tax exempt. Care must be provided in the carer’s home and no more than 3 children at any one time
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| Capital Acquisitions Tax |
- Class thresholds effective from 8 December 2010:
- Class A: Parent to child – €332,084
- Class B: Related persons – €33,208
- Class C: Non-related persons – €16,604
- 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.
