Budget 2018 - What we know so far

Budget 2018 – What we know so far

September 19, 2017

Budget 2018 is due to be announced on Tuesday October 10th 2017 by new Finance Minister Paschal Donohoe.


What can we expect to be announced in Budget 2018?


USC reductions – There may be a reworking or amalgamating of the USC and pay-related social insurance (PRSI) which might mean more people paying PRSI but less paying USC. USC for over 70’s will either be extended past its current end date of 2017 or allowed to end.

Income Tax – At present, PAYE workers’ pay the higher rate of 40% when their earnings reach €33,800. An increase to €34,800 is possible and would cost €178m.  Alternatively, the 20% income tax rate itself could be reduced to 19% and would cost an estimate of €580m.

Inheritance Tax – It is believed that an increase from €310,000 to €350,000 may take place in this budget. Gift Tax, currently €3,000 per annum tax free, may be changed, with some predicting an increase €3,750 and others a reduction to €2,500.

Landlords – Current restriction to 75% to the amount allowed as an expense for loan interest could be increased to 85%, with the intent of restoring 100% deductibility within the next few years.

State Pension – Possible increase of €5 which would bring the contributory pension up to €240 a week.

Mortgage Interest Relief – Expect to be extended beyond the current 2017 end date.

DIRT – Possible 2% Cut from 39%

Corporation Tax – No change expected from the current rate of 12.5%

Property Tax – It has remained the same since its introduction in 2013 but The IMF have suggested it could be increased.

Medical Cards – Health Minister Simon Harris hinted at a broaden of the eligibility for medical cards or GP visit cards

Sugar Tax – to be introduced Taoiseach Leo Varadkar has indicated with a charge on fizzy drinks top of the list.

newspaper templates - theme rewards