Budget 2009
The good news is….
€ Stamp Duty on commercial properties has been reduced. Now if you buy a commercial premises for over €80,000, you will pay stamp duty at a rate of 6% as opposed to the previous 9%.
€ The rate of Mortgage interest relief will be increased from 1 January 2009. If you are a first time buyer, the rate will increase from 20% to 25% in the first and second year, and 22.5% in years 3, 4 and 5. Even if you have bought your first house in the past four years, you will still benefit from these changes.
€ Stamp Duty Relief for young trained farmers was supposed to terminate on 31 December 2008 however it has been extended for a further four years.
And now for the bad news…..
€ The rate of Mortgage interest relief for non-first time buyers will be decreased from 20% to 15% from 1 January 2009.
€ A new income levy has been introduced, being charged at a rate of 1% on gross income up to €100,100 and 2% on income over and above this. After the budget speech, the Minister for Finance announced that a further 3% charge was to be levied on incomes over €250,000
€ Capital Gains Tax has been increased from 20% to 22% with effect from 14th October 2008
€ The rate of VAT has increased from 21% to 21.5% with effect from 1 December 2008.
€ An annual levy of €200 is payable on each dwelling apart from your principal residence, thus affecting any holiday home or rental property. This will not have immediate effect and we expect that we will be notified when the Minister for the Environment signs the implementing legislation.
€ If you work in a main urban centre and your employer provides you with a car park space, you will be liable to pay a levy of €200 per year.
€ The maximum amount you can contribute to your pension before tax has been reduced from €275,239 to €150,000 per year.