Budget 2009 Perspective

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Budget 2009 Breakfast briefing presentation

Budget 2009 Breakfast briefing presentation

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  • 1. Budget “Nothing to fear, but fear itself!” 2009 Breakfast Briefing Riverside Park Hotel, 15/10/2008 1
  • 2. Budget 2009 Breakfast Briefing OVERVIEW Economic Overview Impact for Individuals Impact on Business Other Budget Changes Company Law Developments Tax Policy & Practice Year End Tax Planning 2
  • 3. Budget 2009 Breakfast Briefing Economic Overview Where next for the economy? 3
  • 4. Budget 2009 Breakfast Briefing What goes up,..... 4
  • 5. Budget 2009 Breakfast Briefing The credit crunch 5
  • 6. Budget 2009 Breakfast Briefing Exchange Rate Movements 6
  • 7. Budget 2009 Breakfast Briefing Consumer confidence 7
  • 8. Budget 2009 Breakfast Briefing Positives 8
  • 9. Budget 2009 Breakfast Briefing Budget 2009 – Impact for Individual Taxpayers 9
  • 10. Budget 2009 Breakfast Briefing Main Changes – Levy on All Income – Restriction of Pension Contribution Limit – Tax on Savings – Mortgage Interest Relief 10
  • 11. Budget 2009 Breakfast Briefing Income Tax Levy Rate Income Levy % Income up to €100,000 1% Balance €100,100 2% Payable by everyone • What can you do to reduce your exposure: • Reduce salary and maximise expenses • Avail of e-working allowances (pay for your staff broadband at home instead of a pay rise)
  • 12. Budget 2009 Breakfast Briefing Main Tax Band Existing Proposed Increase Standard Rate Tax Bands € € € Single/Widowed Personal 35,400 36,400 1,000 Married, One Income 44,400 45,400 1,000 Married , Two Incomes 70,800 72,800 2,000 One Parent/Widowed Parent 39,400 40.400 1,000 PRSI Ceiling 50,700 52,000 1,300 No increase in tax credits 12
  • 13. Budget 2009 Breakfast Briefing Restriction of Pension Contribution Limit Existing Proposed Decrease Contribution Limit €275,239 €150,000 €125,239 Effect % Relief Reduction in Tax Effect Limit @ 41% Under 30 15% 18,786 7,890 30 to 39 20% 25,048 10,520 40-49 25% 31,310 13,150 50 to 54 30% 37,572 15,780 50 to 59 35% 43,834 18,410 60 and over 40% 50,096 21,040 13
  • 14. Budget 2009 Breakfast Briefing Restriction of Pension Contribution Limit Impact on preliminary tax liability 31/10/2009 will be last year higher limit can be availed Other pension changes No indexation of the Standard and Personal Fund Thresholds' 14
  • 15. Budget 2009 Breakfast Briefing Tax on Savings Existing Proposed Increase Deposit Interest Retention Tax 20% 23% 3% Life Assurance policies and 23% 26% 3% investments funds Effective from 01/01/2009 15
  • 16. Budget 2009 Breakfast Briefing Personal Taxation Mortgage Interest Relief increased and the period over which ‘enhanced first time buyer’ relief may be claimed is the first seven years of the mortgage Existing Proposed Maximum Benefit Single Married Year s 1 and 2 20% 25% €500 €1,000 Years 3 to 5 20% 22.5% €250 €500 Non first time buyers 20% 15% €500 €1,000 16
  • 17. Budget 2009 Breakfast Briefing Personal Taxation Married Couple , Two Incomes earning €60k, Two Children 17
  • 18. Budget 2009 Breakfast Briefing Budget 2009 – Impact for Business 18
  • 19. Budget 2009 Breakfast Briefing Main Changes Increase in VAT rate Increase in CGT rate 3 year exemption from Corporation & Capital gains tax for start up business Capital allowance for some green technologies Stamp Duty reduction on commercial buildings 19
  • 20. Budget 2009 Breakfast Briefing Change in VAT Rates Existing Proposed Increase Standard Rate VAT 21% 21.5% 0.5% Reduced Rate 13.5% 13.5% No Change Flat Rate Farmers 5.2% 5.2% No Change Changes take effect from 01 December 2008 20
  • 21. Budget 2009 Breakfast Briefing Capital Gains Tax Existing Proposed Increase Capital Gains Tax 20% 22% 2% Changes take effect from 15th October 2008 21
  • 22. Budget 2009 Breakfast Briefing Corporation Tax 22
  • 23. Budget 2009 Breakfast Briefing Corporation Tax 23
  • 24. Budget 2009 Breakfast Briefing Capital Allowances Scheme for certain energy- efficient equipment 24
  • 25. Budget 2009 Breakfast Briefing Stamp Duty on Commercial Buildings Aggregate Consideration Rate of Duty Up to €10,000 Exempt €10,001 to €20,000 1% €20,001 to €30,000 2% €30,001 to €40,000 3% €40,001 to €70,000 4% €70,001 to €80,000 5% Over €80,000 6% The reduction to 6% will provide attractive to foreign investments funds 25
  • 26. Budget 2009 Breakfast Briefing Other Budget Changes 26
  • 27. Budget 2009 Breakfast Briefing Move to electronic transactions Existing Proposed Increase Stamp Duty on Cheques €0.30 €0.50 €0.20 ATM Cards €5 €2.50 €2.50 Debit Cards €5 €2.50 €2.50 Combined ATM/Debit Cards €10 €5.00 €5.00 27
  • 28. Budget 2009 Breakfast Briefing Move to electronic transactions 28
  • 29. Budget 2009 Breakfast Briefing 29
  • 30. Budget 2009 Breakfast Briefing Other Budget Changes 30
  • 31. Budget 2009 Breakfast Briefing Other Budget Changes 31
  • 32. Budget 2009 Breakfast Briefing Other Topical Issues 32
  • 33. Budget 2009 Breakfast Briefing VAT treatment of forfeited deposits Relevant to hotels and other business which receive deposits as part of their normal business Where the deposit is forfeited and retained it is treated as a cancelation charge and exempt from VAT The VAT paid on the deposit can be reclaimed VAT can be reclaimed for prior years subject to the four year rule. 33
  • 34. Budget 2009 Breakfast Briefing VAT Reverse Charge for Principal Contractors and Sub-contractors 34
  • 35. Budget 2009 Breakfast Briefing More Information www.perspective.ie/whatsnew.html www.perspective.ie/budget.html www.budget.gov.ie 35
  • 36. Budget 2009 Breakfast Briefing Unit B4a, Enniscorthy Bus. Prk Old Dublin Road, Enniscorthy Co. Wexford. michael@perspective.ie www.perspective.ie 053 9242842 36