• Farrell & Farrell

ROI BUDGET 2021 ANNOUNCEMENT

A brief summary of the ROI Budget 2021 measures announced by the Finance Minister yesterday, 13 Oct 2020:-

PERSONAL TAX

  • No changes to IT rates

  • Increase in Earned Income Credit from €1,500 to €1,650

  • Increase in Dependant Relative Credit from €70 to €245

  • Increase in 2% band to €20,687 only wef 1 Jan 2021

  • Working from home – tax deductions for employees for unreimbursed utilities expenses (L&H, Broadband)

BUSINESS TAX

  • Corporation tax rate remains at 12.5%

  • Debt Warehousing to include repayments of TWSS owed by employers, 2019 Balance of IT & 2020 Preliminary tax liabilities for adversely affected self-assessed taxpayers – deferral of debts 12 months interest free, with 3% charged thereafter

  • Reduction in VAT rate to 9% for Tourism & Hospitality sectors wef 1 Nov 2020 until Dec 2021

  • Increase in Farmers Flat Rate Addition from 5.4% to 5.6% wef 1 Jan 2021

  • New COVID Restrictions Support Scheme (CRSS) to provide advance trading expense credit in the form of a cash payment: 10% of 2019 average weekly turnover up to €1m & 5% thereafter up to a max €5k per week for eligible businesses forced to close temporarily and those with significantly reduced levels of trade due to COVID restrictions (level 3 or higher)

  • Employer’s PRSI weekly income threshold increase from €394 to €398 for higher rate employer’s PRSI wef 1 Jan 2021

  • Knowledge Development Box is being extended until Dec 2022

  • A new tax credit for the Digital gaming sector wef 1 Jan 2022

PROPERTY TAX

  • Help to Buy scheme additional measures extended until end of 2021

  • Stamp Duty (“SD”) Refund Scheme on residential development of acquired non-residential land extended until end of Dec 2022 [30 mths timescale]

  • SD relief for the transfer of agricultural land to family members at 1% is extended to Dec 2023

  • Farm consolidation relief attracting 1% SD extended to Dec 2022

  • A commercial rates waiver for the final QTR of 2020

OTHER

  • No changes to CGT rates.

  • Entrepreneurs’ relief CGT 10% rate – a slight change to the ownership requirements to at least 5% for any continuous period of 3 yrs wef Jan 2021

  • No changes to CAT rates or thresholds.

  • Excise duty - Increase of 50c on pack of 20 cigarettes and pro-rata increase on other tobacco products from midnight Budget Day

  • A new VRT regime to be introduced from Jan 2021

  • The rate of Carbon tax will increase by €7.50 to €33.50 p/tonne from midnight Budget Day for auto-fuels only and 1 May 2021 for other fuels


2 views

Recent Posts

See All

Extension of Pay & File Deadline

Due to the ongoing issues in relation to the COVID-19 crisis, Irish Revenue have announced that there will be a further four week extension to the Pay & File Deadline for Self-Assessment Income tax an

Irish Budget 2021

The Minister for Finance, Paschal Donohoe and The Minister for Public Expenditure and Reform, Michael McGrath will present the Irish Budget for tax year 2021 on Tuesday, 13th October 2020.

35 Main Street
Hilltown
Newry
County Down
BT34 5UJ

Tel:      028 4063 0876

Fax:     028 4063 2648

Email:  info@farrellca.com

  • Facebook - Black Circle
  • Twitter - Black Circle
  • LinkedIn - Black Circle

Farrell & Farrell CA Limited (trading as Farrell & Farrell) is registered in NI with registration number NI 639336. Registered with The Chartered Institute of Taxation as a firm of Chartered Tax Advisers. Registered to carry on audit work and regulated for a range of investment business activities by Chartered Accountants Ireland (CAI). Details about our audit registration can be viewed at www.auditregister.org.uk under reference number 3044856.