- Top rate of tax remains at 41%
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- Standard rate of tax remains at 20%
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- 2009 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%
- 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 expenses incurred from 1 January 2009…
- …with the exception of nursing home expenses, which will be standard rated from 1 January 2010
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| Income Levy |
- No liability if income <€18,304
- 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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| Parking Levy |
- €200 charge on Employees for the use of car parking spaces in designated urban areas
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| Pensions |
- The Personal Retirement contribution threshold has been reduced to €150,000 from 1 January 2009
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| Income Levy (1 May 2009) |
- New rates are 4% & 5%, up from 2% & 2.5% respectively. The higher rate applies on income in excess of €75,036
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| Mortgage Interest Relief (1 May 2009) |
- Relief available on the first seven years only of a mortgage secured on the family home
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| Capital Gains Tax |
- New rate of 25% will apply to disposals from 8 April 2009
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| Capital Acquisitions Tax |
- Revision of Class thresholds effective from 8 April 2009, and a tax rate increase to 25%
- Class A: Parent to child - €434,000
- Class B: Related persons - €43,400
- Class C: Non-related persons - €21,700
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| Investment Properties |
- Interest relief restriction to 75% of interest amount
- The 20% rate applying to trading profits from development residential lands is abolished, and profits are taxed at individual tax rates - effective 2009
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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.
