Minister for Finance, Michael Noonan, and Minister for Public Expenditure & Reform, Brendan Howlin delivered their 4th Budget, in which they laid out a number of measures aimed at securing “a new economy for Ireland”.
Here is a summary of some key points for the life & pensions industry.
- The much talked about Pension fund levy will be 0.15% in 2015 and will
expire at the end of 2015.
- Exit tax rates – the rate of exit tax that applies on life assurance
policies and investment funds is being maintained at 41% for 2015. (where the
life policy is owned by a company the exit tax is 25%)
- Deposit Interest Retention Tax (DIRT) – the rate of DIRT is being
maintained at 41% for 2015.
- Capital Acquisitions Tax (CAT) – the current rate of 33% is being
maintained. The current group tax free thresholds remain unchanged.
- Capital Gains Tax (CGT) – the current rate of 33% is being maintained.
Other Key Measures Announced in Budget 2015.
- An increase in the Standard rate band of income tax by €1,000 from
€32,800 to €33,800 for single individuals and from €41,800 to €42,800 for
married one earner couples.
- A reduction of 1% of the higher rate of tax from 41% to 40%.
- Changes in the USC rate were announced
- incomes of €12,012 or less are exempt/
- €0 to €12,012 @1.5%/
- €12,013 to €17,576 @ 3.5%/
- €17,577 to €70,044 @ 7.0%/
- €70,045 to €100,000 @8%/
- The rate of corporation tax remains at 12.50%.
- Child benefit will be increased by €5 per month in 2015.
- Tax relief at 20% will be provided on water charges up to a maximum of
€500 per year.