Budget 2020 Update

The Main Points

  • No change in income tax and USC rates and bands for 2020. However, two tax credits are increased:
  • Earned income tax credit for the self-employed and proprietary directors increased by €150 to €1,500 for 2020.
  • The Home Carer tax credit increases by €100 to €1,600 for 2020.
  • No State Pension increases for 2020 but two allowances are increased from March 2020:
  • The Living Alone allowance by €5 pw to €14 pw
  • The Qualified Child by €3 pw for under 12s and by €2 pw for the over 12s to €36 pw and €40 pw respectively.
  • CAT Class A Threshold increased by €15,000 to €335,000 from 9th October 2019.
  • No changes announced in private pension tax reliefs or taxation of benefits.
  • Employer’s Class A PRSI rate increases to 11.05% in 2020 (for those with earnings over €386 pw).
  • The annual limit for tax relief on investing in Employment and Investment Incentive (EII) is increased from €150,000 to €250,000 from 8th October 2019 and to €500,000 for those who invest for at least 10 years.
  • The Help to Buy tax rebate scheme extended to end of 2021.
  • Stamp Duty rate on purchase of commercial property increased to 7.5% from 8th October 2019.
  • Dividend Withholding Tax (DWT) increases from 20% to 25% from 1st January 2021.
  • Other taxation and pension changes not announced in the Budget could be introduced later in the Finance Bill 2019