19/10/2020 0 Comments
The Main Points
No change in Income Tax Rates and Bands for 2021. However, Two Tax Credits are increased :
- Earned income tax credit for the self-employed and proprietary directors increased by €150 to €1650 for 2021.
- The Dependant relative tax credit increases by €145 to €245 for 2021.
- The 2% USC band will be increased in 2021 from €8,472 to €8,675.
- No change announced in DIRT rate at 33%, Exit tax rate of 41% or in the 1% Life Assurance premium levy.
- No State Pension Increases for 2021 but, the Living Alone Allowance increases by €5pw to €19.00 pw.
- The Christmas Bonus of 100% of the weekly rate of State Pension will be paid in early December 2020.
- The State Pension Age will remain at 66 for those reaching 66 in 2021.
- No Change in CAT rates or threshold amounts.
- No change in CGT rate.
- No Changes in private pension tax reliefs, limits or taxation of benefits.
- No change in PRSI rates, employer or employee.
- Help to Buy Scheme extended to end of 2021.
- Other taxation and pension changes not announced in the budget could be introduced later in the Finance Bill 2020.
USC RATES & BANDS
First €12,012 0.5% First €12,012 0.5%
First €8,472 2.0% Next €8,675 2.0%
Next €50,170 4.5% Next €50,170 4.5%
Balance 8% Balance 8.0%