A summary of the key points from Budget 2018 are as follows:
The 2.5% USC rate will be reduced to 2.0%.
The 5.0% USC rate will be reduced to 4.75%.
The ceiling on the reduced 2.0% rate will increase from €18,772 to €19,372. This will ensure that full time workers on the increased national minimum wage of €9.55 do not pay the upper rate of USC.
The entry point for the USC will remain unchanged at €13,000.
Therefore, the revised rates and bands for the USC are as follows:
From €0 to €12,012 at 0.5%
From €12,013 to €19,372 at 2.0%
From €19,373 to €70,044 at 4.75%
From €70,045 to €100,000 at 8%
Electric cars to have zero per cent rate of benefit in kind for one year alongside the existing VRT relief up to a maximum of €5,000 and the SEAI grant of up to €5,000 already in place. There will be a comprehensive review of BIK on motor vehicles in time for the next budget.
The vacant site levy will be increased from 3% to 7% in 2019. This means that any owner of a vacant site on the register who does not develop their land in 2018 will pay the 3% levy in 2019 and then become liable to the increased rate of 7% from 1 January 2019. If the land owner continues to hoard land in 2019, they will pay 7% in 2020, resulting in an effective vacant site levy of 10% over the two years.
Value Added Tax (VAT)
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