Budget Update 2010

Income Tax

There were no changes to basic rates and cut-off points.  The main changes were

  1. Mortgage Interest Relief
  2. High Earners restrictions
  3. Non-Residents

Mortgage Interest Relief

Qualifying loans taken out before 1st July 2011 will get relief for 7 years

There will be transitional measures for loans taken out between 1st July 2011 and 31st 12 2013.

Those whose entitlement to relief would expire in or after 2010 will continue to get the relief till the end of 2017.

The relief expires at the end of 2017.

High Earners Specified Reliefs

This affects taxpayers who had availed of what are called specified reliefs e.g. Section 23. They are taxed on an adjusted income calculation which reduces the value of these reliefs. Previously, the entry point to this restriction was €250,000. It is now decreased to €125,000. The full restriction kicks in at €400,000. The aim is to raise these taxpayers effective tax rate to 30%.

This can be a complex area and tax advice should be sought


Non-resident individuals who

  1. Retain Irish domicile and
  2. Have Irish assets exceeding €5 million and
  3. Worldwide income over €1 million

will pay an annual levy of €200,000.

Carbon Tax

A new tax on fossil fuels has been introduced based on the carbon content. The tax is

Fuel €/1,000 Litres
Petrol 34.38
Auto Diesel 39.98


 Excise duty on Alcohol

This was reduced with effect from midnight on 9th December 2009. Wholesalers who had built up stocks will be hit as there is no reclaim mechanism.

Corporation Tax

The exemption from Corporation Tax for the first three years trading by a start-up company has been extended to start-ups in 2010.

Value Added Tax

The standard rate of VAT has been changed back from 21.5% to 21%. This is effective from 1st January 2010.

 Capital Gains Tax

There were no changes in Capital Gains Tax.

Capital Acquisitions Tax

There were no changes

For any queries or help on your tax affairs, we at Conlon O Sullivan & Co, Registered Tax Consultants can offer you a proactive and expert service.  Please contact us to arrange a consultation.

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