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Budget 2013 - The Main Points - Property tax
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic8.jpgProperty tax: As expected, the Local Property Tax (LPT) will be levied at a graduated scale from 0.18 per cent to 0.25 per cent depending on the value of the property. Properties worth €1 million will be liable to 0.18 per cent on first million and 0.25 thereafter. The average householder will pay €300-€500 a year, according to most estimates. All in all, it’s expected to net the exchequer some €250 million in 2013 after it is introduced in July, and €500 million in a full year. Property tax exemption up to 2016 for new or previously unoccupied homes. Property tax exemption also applies to all first time buyers between 2013 and 2016. An established, internationally recognised model for property investment – Real Estate Investment Trust (REIT) - is to be introduced. REITs are listed companies, used to hold rental property, which provide a return for investors similar to that of direct investment in property.
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Budget 2013 - The Main Points - Children's allowance
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic17.jpgChildren's allowance: Child benefit was a major talking point in the lead up to last year’s budget but the debate seem more muted this time round. Minister Howlin announced a €10 cut per child in the allowance. It will yield the exchequer about €140 million per annum. Maternity benefit to be treated as taxable income. The Back to School Clothing and Footwear Allowance will reduce by €50.
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Budget 2013 - The Main Points - USC
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic23.jpgUniversal Social Charge: Minister Noonan has just announced a three-point increase in universal social charge (USC) for those over 70 with incomes of €60,000 or more. This will bring the USC rate from 4 per cent to the 7 per cent that applies to the under 70s. This was well flagged in advance.
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Budget 2013 - The Main Points - Education
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic13.jpgEducation: A €250 rise in third-level student contributions has been announced for 2013, 2014 and 2015.
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Budget 2013 - The Main Points - Social Welfare
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic18.jpgSocial Welfare: The Government will not be reducing any primary social welfare rate in this Budget. In addition, there will be no change to the weekly fuel allowance. However, the duration of Jobseeker’s Benefit will be reduced by three months, from 12 to nine, saving the Exchequer €33 million next year
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Budget 2013 - The Main Points - PRSI
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic11.jpgPRSI: One of the big savings, signalled in advance, will be the reconfigured PRSI regime. Minister Noonan says PSRI contributions are "progressive and redistributive" and favour lower-income groups. The €127 exemption on all those earning €352 a week is to be abolished. That will cost each taxpayer some €261 per annum and will yield more than €300 million to the exchequer in a full year.
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Budget 2013 - The Main Points - Excise
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic4.jpgAlcohol: No increase on excise duty on diesel and petrol but 10 cent on beer and spirits and a whopping €1 on a bottle of wine.
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Budget 2013 - The Main Points - Tobacco
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic1.jpgTobacco: A 10 cent increase for a packet of cigarettes and rolled tobacco will go up by 50 cent per 25g.
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Budget 2013 - The Main Points - Politicians
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic24.jpgPoliticians: Changes to TDs' expenses are on the way. There will be a 10 per cent cut in the general allowance. Minister Howlin says all unvouched expenses for politicians will be abolished. A popular move with the electorate, no doubt.
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Budget 2013 - The Main Points - Pension
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic19.jpgPensions: Minister Noonan has opted to introduce a new cap of €60,000 on the amount of annual tax relief available for pension contributions. It is expected to generate savings of €200 million. Private pensions, most notably bankers’ pensions, has been one of the single biggest headaches for the Government since the crash. A supertax on fat cat pensions would have been a popular move. However, the Government’s legal advice was that a specific group could not be singled out.
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Budget 2013 - The Main Points - Capital taxes
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic231.jpgDIRT will increase from 30 per cent to 33 per cent. Capital Acquisitions Tax and Capital Gains will be increased from 30 per cent to 33 per cent.
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Budget 2013 - The Main Points - Health budget
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic5.jpgHealth budget: Prescription charges for medical card holders up from €0.50 to €1.50 per item. Respite care grant down cut to €1,375.
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Budget 2013 - The Main Points - Tourism
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic12.jpgTourism: The 9 per cent VAT rate to remain for 2013. Aviation Sector An accelerated capital allowance scheme, over seven years in relation to construction of certain aviation-specific facilities, will operate for a period of 5 years from commencement of the scheme. Restrictions will be imposed on the sideways setting of unused capital allowances against other income and there will be no exemption from the current treatment of the termination of carry forward of certain losses, which apply to capital allowances remaining unused after the end of the tax life of the building, where the investor is in receipt of rental income from the facilities or is not an active partner or active trader.
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Budget 2013 - The Main Points - VRT
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic10.jpgVehicle Tax: The rates of both VRT and motor tax across all categories will increase with effect from the 1st of January 2013. In order to incentivise a more year round motor market, Mr Noonan said he will introduce a dual registration period. Therefore in 2013 vehicles registered from the 1st of January will carry a year tag of 131 and 132 for the second half of the year.
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Budget 2013 - The Main Points - Fuel
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic16.jpgFuel: No increase on excise duty on diesel or petrol. A relief from excise duty on auto-diesel for licensed road hauliers will be introduced from 1 July 2013. Mr Noonan also said he would extend carbon tax to solid fuels on a phased basis over two years commencing after this winter period. A rate of €10 per tonne will apply with effect from the 1st of May 2013 and this rate will increase to €20 per tonne on the 1st of May 2014.
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Budget 2013 - The Main Points - Free travel
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic21.jpgFree travel: No change
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Budget 2013 - The Main Points - VAT
http://www.irishtimes.com/blogs/gallery/files/2012/12/generic9.jpgVAT: Increase in VAT Cash Accounting Threshold: The annual VAT cash receipts basis threshold for small and medium enterprises is being increased from €1 million to €1.25 million with effect from 1 May 2013. This change will assist such businesses in the critical area of cash-flow and reduce administration. Reduction in the Farmer’s Flat-Rate Addition from 5.2 per cent to 4.8 per cent: The farmer’s flat-rate addition will be reduced from 5.2 per cent to 4.8 per cent with effect from 1 January 2013. The flat-rate scheme compensates unregistered farmers for VAT incurred on their farming inputs. The flat-rate addition is reviewed annually in accordance with the EU VAT Directive. The new 4.8 per cent rate continues to achieve full compensation for farmers.
