BUDGET 2023 SUMMARY

Key Points from the Budget 2023 Speech:

• The standard rate income tax band for a single person for 2023 will be increased by €3,200 to €40,000, with corresponding increases for married couples, and the main tax credits by €75.
• A new €500 tax credit is being introduced from 2022 for those paying rent for their principal private residence who are not receiving any other State housing support.
• The Help to Buy scheme for first time buyers extended to end of 2024 at current rates and terms.
• A Vacant Home Tax is being introduced at 3 times the Local Property Tax.
• The 2% USC band will be increased in 2023 from €9,283 to €10,908 with the 4.5% band reduced from €48,749 to €47,124.
• No change in pension tax relief, the €115k NRE limit, or the €2m Standard Fund Threshold limit
• No change in the insurance levies
• No change in DIRT or life assurance exit tax rates
• No change in CGT or CAT rates. The CAT Thresholds remains as before.
• No change in PRSI rates, apart from a minor change related to the increase in the minimum wage.
• State Pension & Social Welfare rates for 2023:
• An increase of €12 pw in the maximum personal rate
• An increase of €2pw for the qualified child increase.
• There will be a double weekly payment of social welfare benefits in October in addition to the normal Christmas double payment in early December 2021.

However, it is possible that other taxation changes not announced in the Budget and not outlined above could be introduced in the Finance Bill 2022 when it is published around the end of October.

source: Brokers Ireland