By Michael Byrne FCA, partner with DBASS Chartered Accountants
The finishing touches are being put to the Finance Bill before it moves through the Seanad on the 21st of March. It is unlikely that any further changes will be made to the Bill at this stage.
President Michael D. Higgins will consider the content of the Bill, before signing it into law on the 6th of April 2012. DBASS Chartered Accountants have designed an infographic to outline the main changes in Finance Act 2012.
Universal Social Charge (USC)
The exemption threshold increases from €4,004 to €10,036.
330,000 people no longer liable for USC.
Roughly equivalent to the population of Sligo, Meath and Laois combined.
Special Assignee Relief Programme (SARP)
An exemption from income tax on 30% of salary between €75,000 and €500,000 for employees assigned to Ireland for 1-3 years. It is hoped for every one highly skilled employee brought in, thirty Irish people may be hired for their team.
Mortgage Interest Relief
25% mortgage interest relief for first-time buyers in 2012.
15% for non-first time buyers in 2012.
Retirement Fund Assets Tax
The tax rate on approved retirement fund assets on the death of an owner to a child over 21 is increased from 20% to 30%.
Carbon tax for petrol + car diesel rose from €15 to €20 last December.
Start-up Corporation Tax Relief
Extended for all 2012, 2013 and 2014 start-ups.
Capital Gains Tax
Any Irish or European property acquired between 7/12/11 to 31/12/13 will benefit from a Capital Gains Tax relief. If you hold such a property for more than seven years, the gains attributed to the seven years will not be liable for CGT.
Relevant Contracts Tax (RCT)
Add “alteration or repair” in any building or structure to relevant contract definition.
Information Revenue Commissioners require:
- Start and end-date of project
- Name and tax reference number of subcontractor
- Whether contract is a labour only contract