As expected, Brexit loomed large in today’s Irish Budget for 2020. With the Government aiming to mitigate the effects of a potential no-deal Brexit, there was very little for the tax payer to celebrate. We have attached a bitesize summary of the main talking points of today’s speech. If you would like further information how today Budget announcement might impact you please do not hesitate to contact us at Sean Cavanagh & Co.
- Package of €1.2billion excluding EU funding, to respond to the challenges of Brexit.
- In the event of a no-deal Brexit the following measures will be introduced:-
- €650m allocated to support Agriculture, Enterprise and Tourism sectors
- €85m allocated to support beef farmers
- €14m allocated to fishing industry and €6m for livestock and mushroom industry
- €5m allocated to food and drinks processing industry
- €45m to assist people to transition to new work
- Dividend Withholding Tax to increase from 20% to 25% from 1st January 2020
- €100 increase in home carers credit raising the total value of the credit to €1,600
- €150 increase in earned income credit raising the total value of the credit to €1,500
- Inheritance tax threshold for parents to their child will increase from €320k to €335k
- 2% increase in funding to the Department of Business, Enterprise and Innovation bringing funding to nearly €1b “to continue to support business into the future”.
- Increase of €6 per tonne on fuels. Will apply to auto fuels immediately and other fuels from May 2020 (after winter heating season).
- New nitrogen oxide emissions based charge to apply to all cars registering for the first time from 1st January 2020.
- Zero rate Benefit in Kind for electric vehicles extended to 2022 and VRT relief for hybrid vehicles extended to 2020.
- 100% Christmas Bonus to all social welfare recipients for 2019
- Rate of commercial stamp duty has increased from 6% to 7.5% immediately
- Help to buy scheme for first time buyers – due to end in 2019 – will be extended for two years to 2021.
- Extra €80m allocated to Housing Assistance Payment scheme
- €1.1b allocated to deliver 11k new social homes in 2020 with a further 12k units in 2021.
- €690m increase in funding for the Department of Employment Affairs and Social Protection
- Living alone allowance increase of €5
- Qualified child payments increase of €3 for over 12’s and €2 for under 12’s.
- Health spending is €17.4b – an increase of €1b compared to prior year
- Free dental care for children under 6 and free GP care for children under 8
- Prescription charges to fall by 50% and drug payment scheme threshold reduced by €10 per month
- Additional €25m to address waiting lists on the HSE
- Cigarettes excise to increase by 50 cents