Budget Summary 2015

Messages on October 14th, 2014 No Comments

Budget 2015 – a summary

Corporation Tax Reform

The Minister has confirmed that the 12.5% Corporation Tax rate will not change.

 Pensions Levy

The Minister went on to confirm that the 0.6% p.a. Pension Levy introduced to fund the Jobs Initiative in 2011 will be abolished from the 31st of December 2014. He went on to confirm that the additional levy on pension funds at 0.15% p.a. will also expire at the end of 2015. This means that the levy will be 0.15% for 2015 and will not apply thereafter.

DIRT Tax and Insurance Levy

To support first time buyers saving for their first home, the Minister introduced a refund for Deposit Interest Retention Tax or DIRT on savings used to purchase their home. This refund will apply from Budget night and will run until the end of 2017 in respect of savings up to a maximum of 20% of the purchase price.

As a result, first time buyers will be able to save for their first home and retain 100% of the interest that they earn on their savings. Specific savings products are likely to be introduced to support this new initiative. With regards to Savings generally, unfortunately the Minister did not make any changes to 41% DIRT and Exit Taxes on Life Assurance Policies and Investment Funds and the Insurance Levy remains unaltered.

Pensions – changes

There was only one real issue confirmed for pensions, as follows:

Pension Levy

The four year pension levy announced as part of the Jobs initiative will not be extended beyond the original end date of 2014 and the new Pensions levy of 0.15% that was introduced from 2014 will only apply for 2 years for 2014 and 2015.

In effect this means that the Pensions Fund Levy of 0.15% will apply for 2015 and then cease to apply from 2016 thereafter.

Life & Taxation – No changes

Savings: DIRT and Exit Taxes on Life Assurance Policies and Investment Funds

In Budget 2015, unfortunately the Minister did not make any changes to Deposit Interest Retention Tax and Exit Taxes on Life Assurance Policies and Investment Funds and the Insurance Levy remains unaltered.

Savings: Corporate Deposits

The current corporate exit tax rate remains at 25%.

Capital Acquisitions Tax (CAT)

The CAT rate will remain at 33%.

The Group Thresholds will remain unchanged. For example, Group A Threshold (gifted to or inherited by son/daughter) will remain at €225,000.

Capital Gains Tax (CGT)

The CGT rate will remain at 33%

Contact Your Local Independent Financial Adviser

Lucas Financial Consulting Ltd is based near Carrickmacross Co Monaghan. As we straddle four counties – Louth, Monaghan, Cavan and Meath we are ideally placed to become your new Local Independent Financial Adviser.

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