We’re very grateful to Sean Kavanagh, CPA, with Sean Kavanagh & Co, accountants,
firstname.lastname@example.org, for preparing the following list for us.
- The self-employed tax credit increases from €550 to €950 per annum. We’re still not on a part with employees who receive €1650 per year, but we’re getting there.
- Small reductions in the rates of Universal Social Charge, in cash terms it means that a person earning Gross €40,000 per annum will see a €200 reduction in USC.
- Rental Income: 80% of mortgage interest on your rental investment property will be deductible against rental income, this increased from 75% in 2016.
- The tax exemption for renting a room in your house increases to €14,000 from €12,000 per annum.
- The home renovation incentive is extended to the end of 2018.
- Help to buy incentive: Relief is given in the form of a rebate of an amount equal to income tax paid for previous four years, the maximum allowable will be 5% of the value of the new home up to €400,000. Maximum rebate allowed is €20,000. The relief is available to firs time buyers and self-builders. Relief will be providied at deposit stage or at the first drawdown of a self-build mortage. The mortgage must be taken out for a minimum 80% of the purchase price, or in the case of a self-build, 80% of the valuation approved by the mortgage provider. There’s a lot of complication with this one, we’d recommend having a chat with a mortgage broker.
- Farmers experiencing difficult trading losses can opt out of income averaging.
- Start your own business relief – tax incentive for the long term unemployed starting their own business is extended for another 2 years.
- The enhanced capital allowances for energy efficient equipment is extended to sole traders as well as companies.
- CGT: 10% CGT rate will apply if you sell your business in 2017 – subject to certain rules.
- Gift/inheritance Tax: The tax free threshold are increased in 2017, the main change was the threshold from parent to child. This increases from €280K to €310K.
- Dental and Optical benefits plus the invalidity pension will be available for self-employed persons from 2017 onwards. This is not to be underestimated. Self-employed people and their children never received dental or optical benefits before. Go and get your teeth cleaned!
We hope this helps. If there is anything we’ve not included that relates to your specific industry, let us know and we’ll share it out on our Facebook page and Twitter.