Property Market Changes:
1. First Time Buyers - Mortgage Interest Relief will be increased to 25% (from 20%) in the first two years, and to 22.5% in the third, fourth and fifth years.
2. Second Time Buyers - Mortgage Interest Relief will be reduced from 20% to 15%.
3. First Time Buyers will be offered increased mortgage funding from the Housing Finance Association.
4. The Government will simplify the Affordable Housing Scheme.
5. Commercial Property stamp Duty will be reduced from 9% to 6%.
6. €200 will be charged on all non principal private residences per annum i.e. for landlords on their rental
properties and on holiday homes.
Other Budget Changes:
7. 1% income levy will be charged on all income up to €100,100 per annum.
8. 2% income levy will be charged on all income in excess of that amount.
9. The standard rate tax band will be increased by €1000.
10. VAT standard rate will increase from 21% to 21.5%
11. Petrol will increase by 8 cents per litre.
12. Cigarettes will increase by 50 cents (per pack of 20)
13. Wine will increase by 50 cents per standard bottle.
14. €200 levy will be charged to employees in urban areas with car parking spaces provided by their employers.
15. Dirt tax on deposit accounts increases to 23% (from 20%) and to 26% (from 23%) on certain other savings, including investment bonds.
16. Third Level Student Registration Fees will increase from about €900 to €1500.
17. Child Benefits for 18 year olds living at home, will be phased out over two years, and children over five and a half will no longer be eligible for the €1100 a year childcare supplement.
18. Health Care
- increase in A&E fees to €100 (from €66).
- Medical Card for over 70's will be means tested.
- Tax relief on medical expenses will only be claimable at the standard rate of tax
- Fees for private and semi private rooms in hospitals will go up by 20%, resulting in an increase in the cost of health insurance.
19. €10 departure tax on flights over 300km and €2 on shorter flights (including domestic flights)
20. The rate of capital gains tax will increase to 22% (from 20%)
The bad news is that practically everybody will have less money in their pocket every month.
Thanks to independent mortgage brokers, Mortgages Direct, who helped put this guide together.
Mortgages Direct have 2 ways to help you put some money back in your pocket
1. Consolidate your mortgage and debts.
Not everyone will be in a position to refinance their debts, but if you have some equity in your home, it's worth getting a quote to see how much you can save.
To see if you can save money, fill in a few details or call 1890 44 66 44.
2. Have you taken the 3 minute review of your mortgage protection insurance yet?
While not everybody will be able to refinance their debts, every mortgage holder in Ireland should at least review their mortgage protection insurance, to see if they can save money on it.
Because Mortgages Direct have a price match guarantee (which means that they can match the best price from 8 of the leading insurance companies in Ireland) there's a great chance that you could pay a lot less for the exact same (or even better) cover.
Get a no obligation quote or call Eamonn on 01 216 3303.
Disclaimer:
While we have carefully reviewed the Budget details, you should confirm the information with a tax professional before acting on information contained here.
