2017
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BUDGET OVERVIEW
Minister for Finance, Michael Noonan, T.D. and Minister
for Public Expenditure & Reform, Paschal Donohoe, T.D.
today delivered their Budget speeches, in which they
have laid out a number of measures aimed at “repairing
the damage done to our economy in the past and to
ensure that we can look forward to a new Ireland with
an equitable tax system that provides sustainable funding
for efficient and effective world class public services”.
Some of the key measures announced in Budget 2017
were incentives for first time buyers, social welfare
payments increased by €5 per week and each of the three
lowest rates of the Universal Social Charge are to be
reduced by half a percent.
Additional spending announced for health, education and
Justice with recruitment of extra teachers and Garda.
In addressing the housing crisis, €1.2bn in funding
announced with 47,000 new social housing units by 2021.
Excise duty on pack of 20 cigarettes to go up by 50
cents while alcohol, petrol and diesel excise duty remain
unchanged.
28 South Mall, Cork City
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[email protected]
www.michaelenright.ie
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HEALTH
GARDAI
• €497 million extra in spending bringing it to €14.6
billion.
• €28 million additional spending, total package
€68 million.
• Medical card coverage will be extended to all
children in receipt of domicilary care.
• 800 new Gardai to be hired and trained in 2017.
• NTPF (National Treatment Purchase Fund) additional €15 million to reduce waiting lists.
LANSDOWNE ROAD AGREEMENT
EDUCATION
• €9.5 billion on education, increase of €458 million.
• 2,500 extra teachers, 900 of whom are resource
teachers.
• Third level funding increased by €36.5 million.
SOCIAL WELFARE
• State pension, disability and jobseekers allowance
will rise by €5 per week from March.
• Christmas Bonus - 85% of weekly payment will
be paid out this year.
• €25 cap on prescription charges for over 70s,
reduced to €20 from March 2017.
• €290 million towards partial pay restoration
which was agreed.
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INCOME TAX, RATE BANDS & PRSI
CAPITAL ACQUISITIONS TAX
• No reduction in the higher rate of income tax
of 40%.
• Category A will increase by €30,000 to €310,000.
• Categories B and C increased by 8%.
• No increase in the standard rate tax band of
income €33,800 for single individuals and €41,800
for married one income earners.
• No change to PRSI rates.
INFRASTRUCTURE
• €319 million on regional and local roads.
ARTS & SPORTS
• A significant portion of the Centenary budget will
remain in the Arts budget.
• A new round of the Sports Capital Programme in
2017, details to be announced.
• €44 million for flood relief schemes.
• €15 million allocated to progress the procurement
of the National Broadband Plan to provide highspeed broadband to areas of rural Ireland.
THE SUGAR TAX
• Introduced April 2018, exact details to be
confirmed.
CLIMATE CHANGE
• Electric vehicles - extending relief for vehicle
registration.
• Hybrid vehicles – extending VRT for two years.
• Relief for companies that use biofuels.
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FARMING
FIRST TIME BUYERS
• Department of Agriculture budget will be
increased by €119 million next year.
• Rebate of Income Tax paid over preceding 4 years.
• Farmers facing a poor year will be able to step
out of income averaging, available immediately.
• VAT flat rate addition rises from 5.2% to 5.4%
from 1st January 2017.
• Restructuring relief extended to end of 2019.
• Low cost loans at an interest rate below 3%.
• Payments on raised bog scheme exempt from
CGT.
• Income tax credit €1,270 for fisherman.
PRIVATE HOUSING
• Home Renovation Incentive Scheme extended to
end of 2018.
• Rent a Room Scheme increased to €14,000 per
annum.
• Mortgage interest relief extended until 2020.
• Full interest deductibility for landlords from 75%
to 80% and will rise to 100%.
• Max of 5% rebate up to €20,000, purchase price
up to €400,000.
• Effective from 1st July 2017 to the end of 2019.
• Pro rata rates for lower priced houses.
• Applies to new builds only.
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EXCISE & VAT
SMES & SELF EMPLOYED
• 9% VAT rate for the tourism sector to remain.
• Earned Income Tax Credit increased by €400 to
€950 per annum.
• A packet of 20 cigarettes will increase by 50 cents.
• There are no changes to alcohol excises.
• There are no changes to motor tax, petrol, diesel
or VAT.
DIRT
• 2% deduction per annum – from 41% to 33%
by 2020.
• Capital Gains Tax - reduced to 10% when selling a
company, limited to €1 million.
CHILDCARE
• Early years funding increase of 35% to €465 million.
• €35 million to support the provision of universal
and targeted services.
• Single Affordable Childcare Scheme commencing
1st September 2017 providing a universal subsidy
to families who use childcare for children under 3.
• Means-tested subsidies for children aged between
6 months and 15 years.
SOCIAL HOUSING
• Local Infrastructure Housing Activation Fund €50 million.
• Housing Assistance Payments Scheme €105 million.
• Emergency Housing - €100 million.
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TAX CREDITS
FOR YEAR 2017
PERSONAL
INCOME TAX
RATES
2017 2016
SINGLE PERSON
MARRIED PERSON
Single
1,650
1,650
2017
2017 (two incomes)
Married
3,300
3,300
20% of first €33,800
20% of first €67,600*
Widowed Person
2,190
2,190
40% balance
40% balance
One Parent Family
1,650
1,650
Single Person/Child Carer
1,650
1,650
WIDOWED PARENT
BEREAVEMENT
2017 2016
In Year of Assessment
3,300
3,300
Incapacitated Child
3,300
3,300
Dependent Relative
70
70
BLIND PERSON
2017 2016
Single/Married
1,650
1,650
Both Blind
3,300
3,300
AGE CREDIT
2017 2016
*transferable between spouses up
to max of €24,800 for one spouse
Single Parents
(One Income)
20% first €33,800
20% of the first 42,800
40% Balance
40% Balance
INCOME EXEMPTION
LIMITS
SINGLE/WIDOWED
2017 2016
65 years or over
18,000
18,000
Single/Widowed
245
245
MARRIED COUPLES
2017 2016
Married
490
490
65 years or over
36,000
36,000
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UNIVERSAL SOCIAL CHARGE
EMPLOYEE & SELF-EMPLOYED
2017
2016
0% if earnings <€13,000 per annum
0% if earnings <€13,000 per annum
0.5% on €0 to €12,012 per annum
1% on €0 to €12,012 per annum
2.5% on €12,013 to €18,772 per annum
3% on €12,013 to €18,667 per annum
5% on income between €18,773 to €70,044
5.5% on income between €18,668 to €70,044
8% on income between €70,045 to €100,000
8% on income between €70,045 to €100,000
11% for self-employed over €100,000
11% for self-employed over €100,000
PRSI
EMPLOYER
2017
2016
Contribution for Class A
EMPLOYEE
PRSI
PRSI
10.50%
10.50%
TRAINING
10.50%
10.50%
TOTAL
10.50%
10.50%
SELF EMPLOYED/
DIRECTORS
CONTRIBUTION
PRSI
2017
2016
4% on all
income
4% on all
income
2017
2016
4% on all
income
4% on all
income
Please note that this Budget Briefing is merely a general guide and should not be used as a substitute for professional
financial advice.
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