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Budget Briefing 2019 - What can we expect?

Wednesday, 03 October 2018

Budget 2019 will be announced on Tuesday, 9 October 2018.

It is expected to offer modest changes in the personal income tax regime by increasing the standard rate band as well as reducing the rates of USC. For companies and businesses, we anticipate the introduction of tax measures to stimulate further growth as well as protecting the Irish economy from the challenges presented by Brexit and changing global tax and trade policies.

It has been well-flagged by the Minister for Finance and Public Expenditure and Reform that there is limited scope for major tax cuts in Budget 2019.

Some measures and commitments that may be announced next week include:

Corporation TaxPersonal Taxes
  • Continuing strong commitment to the 12.5% corporation tax rate.
  • Small adjustments to income tax bands and USC rates to benefit the 'squeezed-middle'.
Capital TaxesStamp Duty
  • Rumoured frequently over the last number of budgets, a possible reduction in the 33% rate of Capital Gains Tax.
  • Adjustments to the tax-free thresholds for Capital Acquisitions Tax (gifts/inheritances).
  • Potential increase on residential property transactions involving multiple units by institutional investors to match it with the current rate of 6% on commercial property transactions.

Indirect TaxesEntrepreneur Taxes
  • Possible changes to the 9% VAT rate for tourism and hospitality sector which could see the 9% rate abolished.
  • Increases in excise duty on cigarettes and diesel, as well as increases in carbon tax.
  • Possible increase in the Earned Income Tax Credit for self-employed individuals to bring it in line with the PAYE tax credit.
  • Potential increase in the €1million threshold for entrepreneurial relief to align it more closely with the UK equivalent.

The Minister is also expected to use Budget 2019 to announce details of new tax measures to be introduced over the coming years to comply with the EU Anti-Tax Avoidance Directive, including the introduction of Controlled Foreign Company rules effective from 1 January 2019.

How ByrneWallace can help

Our Tax Team  will keep you informed of developments on Budget day. Check out our website next week for our Budget Briefing to find out how Budget 2019 will impact you, your family and your business.

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Anthony Smyth asmyth@byrnewallace.com + 353 1 691 5281 view profile
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