Budget 2022 The Main Points
The 2022 Budget details were announced in the Dail by the Minister for Finance on the 12th of October. Here we highlight the main points of interest.
- Income tax bands increased by €1,500 and main tax credits by €50.
- The 2% USC band increased from €8,675 to €9,283.
- Employees working at home will be able to claim tax relief on 30% of vouched home electricity, heating and broadband expenses for days spent working from home.
- 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.
- From 1 January 2022 the weekly income threshold for the higher rate of employer’s PRSI will increase from €398 to €410
- State Pension & Social Welfare rates:
o An increase of €5pw in most benefits and pensions
o An increase of €2pw for the qualified child increase for under 12’s and €3pw for children aged 12 and over.
o The Christmas bonus will be paid in early December 2021 at 100% of the weekly amount, i.e. a double weekly payment.
- The Help to Buy Scheme will be extended to end of 2022, providing a tax refund of up to
€30,000 in certain circumstances, but its operation will be fully reviewed during 2022.
- The Employment Investment Incentive (EII) scheme is extended to the end of 2024.
However the range of investment funds through which EII investors can invest will be widened in 2022 (currently only a Designated Investment Fund), which could potentially include life company unit funds.
However it is possible that other taxation changes not announced in the Budget could be introduced in the Finance Bill 2021 when it is published in about 10 days.
For a more in-depth up date from Brokers Ireland Budget Update please click the following link (available by clicking here)
Should you wish to discuss any of the points in detail, please do not hesitate to contact a member of the team today on 01 4972544 or alternatively email firstname.lastname@example.org