Minister for Finance Michael Noonan published the Finance Bill today. Here are some of the new measures announced.
Mortgage interest relief
An increase to 30 per cent in relief for first time buyers who took out their first mortgage in the period 2004-2008
Mortgage interest relief will be available at 25 per cent for first-time buyers who purchase in 2012 and at 15 per cent for non-first-time buyers who purchase in 2012.
Universal Social Charge
Exemption threshold increased from €4,004 to €10,036 for Universal Social Charge.
Special Assignee Relief Programme
A new programme that gives tax incentives aimed at luring senior multinational executives to Ireland. An exemption from income tax on 30 per cent of a salary between €75,000 and €500,000 will be provided for employees assigned to a role in the State for a minimum of 1 year and maximum of 5 years
Foreign Earnings Deduction
This will assist companies seeking to expand into emerging markets in Brazil, Russia, India, China and South Africa. The maximum amount of income that can be deducted under the scheme will be €35,000 per annum. The deduction will operate for three years.
Deposit Interest Retention Tax
The Dirt rate has increased by 3 percentage points to 30 per cent and the rate for certain longer term savings products has also been increased by 3 percentage points to 33 per cent. The increased rate applies to interest paid or credited on or after January 1st 2012.
Retirement relief
This will be changed with an upper limit of €3 million on relief for business and farming assets disposed of within the family.
Approved Retirement Fund (ARF)
The annual imputed distribution which applies to the value of assets in an ARF each year is being increased from 5 per cent to 6 per cent in respect of ARFs with asset values in excess of €2 million