The 2012 budget outlines key tax changes including the increase of the Universal Social Charge exemption and the continuation of the 12.5% corporation tax rate. Personal tax rates remain unchanged while indirect taxes such as VAT and carbon taxes see increases; capital taxes experience adjustments including a rise in CGT rates and a reduction in CAT thresholds. Other highlights include a reduced employer rebate for statutory redundancy and updates to property reliefs and pension regulations.

1. Budget 2012 Highlights And Tax Reliefs and Opportunities

2. Budget – Tax Highlights Tax Incentives and Opportunities Introduction

3. Taxation Personal Taxes Corporation Tax Indirect Taxes Stamp Duty Capital Taxes Other changes

4. Budget Highlights Personal Taxes No change in rate bands or tax credits. Universal Social Charge (USC) exemption increased from €4,004 to €10,036 from 1 January 2012. Extension of PRSI to cover rental, investment and other income of PAYE workers from 2013. Property Based Reliefs Accelerated Capital Allowances – 1 January 2015 Investors with annual gross income of over €100,000 will be subject to a 5% surcharge

5. Budget Highlights Corporate Tax 12.5% Corporation tax to remain Start-Up Exemption extended to 2014

6. Budget Highlights Indirect Taxes Standard VAT rate - 21% to 23% Carbon taxes increased Household charge of €100 p.a. Stamp Duty Commercial Property Rate - 6% to 2% No change to residential rates

7. Budget Highlights Capital Taxes CGT and CAT rates - 25% to 30% CAT threshold reduced from €332,084 to €250,000 on gifts/inheritances from parent to child. CGT exemption on any gains made from property acquired before 31 December 2013 and held for 7 years. Changes to Retirement Relief

8. Budget Highlights Other Points Statutory Redundancy - employer rebate Reduced from 60% to 15%. No changes to pension relief or losses forward Increase in DIRT from 27% to 30% Special Assignee Relief Programme Foreign Earnings Deduction R & D credits

9. Find Out More Visit us Online: http://www.mcinerneysaunders.ie Read More About Our Annual Networking Event & Budget 2012: http://www.mcinerneysaunders.ie/blog/budget-2012-event/