n outline of a is g in w o ll The fo announced in s a s e g n a h c s the ry consciou ve m a I . 18 0 Budget 2 es may have g n a h c e s e h that T u or your o y n o t c a p an im family. or any queries If you have e changes s e h t g in d r a g concerns re ontact me. c o t e e r f l e please fe
John McGuinness TD ADVICE CLINICS Every Saturday: Constituency Office, O’Loughlin Rd
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BUDGET
2018
Constituency Office, O’Loughlin Road, Kilkenny T www.johnmcguinness.ie W (056) 77 70672 Ð john@johnmcguinness.ie M N P
Cllr. Andrew McGuinness L 086 870 5811 Ð cllrandrewmcguinness@gmail.com
John McGuinness TD
WEEKLY CLINIC Every Wednesday: Constituency Office, O’Loughlin Rd
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Cllr. Andrew McGuinness
• €5 increase on all weekly social protection payments with proportionate increases for people on reduced payments and for qualified adults. – March 2018 • Weekly fuel allowance will be paid for 27 weeks in 2018 up from 26 weeks. • Working Family Payment (formerly Family Income supplement) to increase by €10 for families of 1,2 or 3. – March 2018 • Increase disregard for lone parents receiving One Parent Family Payment or Jobseekers Transition Payment by €20 to €130 per week. • Maternity Benefit to be extended to support premature babies born on or after October 1st 2017. • National Minimum Wage increase from €9.25 per hour to €9.55 per hour. – January 2018 • Prescription charges for medical card holders under 70 from €2.50 to €2.00 per item with a monthly cap from €25 to €20. • Drugs Payment Scheme threshold down from €144 to €134 per month. • New Telephone Support Allowance of €2.50 per week for those in receipt of both the Living Alone Allowance and the Fuel Allowance – June 2018 • Excise duty on a pack of 20 cigarettes increase by 50 cents, pro rata increase on other tobacco products. • Christmas Bonus of 85% will be paid in 2017.
Income Tax • An increase of €750 in the income tax standard rate band for all earners, from €33,800 to €34,550 for single individuals and from €42,800 to €43,550 for married one earner couples. • An increase in the Home Carer Tax Credit from €1,100 to €1,200. • An increase in the Earned Income Credit from €950 to €1,150.
USC RATES & BANDS from 1 January 2018: Incomes of €13,000 are exempt. Otherwise: • €0-€12,012 @ 0.5% • €12,012-€19,372 @ 2% • €19,372-€70,044 @ 4.75% • €70,044+ @ 8% • Self-employed income over €100,000: 3% surcharge The USC relief for medical card holders is being extended for a further two years (revenue neutral as already in tax base). Medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will now pay a maximum USC rate of 2%.
GARDAÍ
Recruitment of 800 Gardaí in 2018 along with 500 civillians.
Working Family Payment (formerly Family Income supplement)
Family Size 2017 Income Limit 2018 Income Limit 1 child €511 €521 2 children €612 €622 3 children €713 €723 4 children €834 €834 5 children €960 €960 6 children €1,076 €1,076 7 children €1,212 €1,212 8 children or more €1,308 €1,308 The level of WFP payment will continue to be based on 60% of the shortfall between net weekly family income and the applicable weekly family threshold.
SUNBEDS: The VAT rate on
sunbed services will be increased from the reduced rate of 13.5% to the standard rate of 23%.
Special Needs Assistants: 1000 can be recruited in time for September 2018.
0612 JMCG Budget 18 171017 8XDL.indd 1-2
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Solar Panels The leasing of agricultural land for solar panels is to be classified as qualifying agricultural activity for the purposes of specific Capital Acquisitions Tax and Capital Gains Tax reliefs. This initiative, which is subject to the panels covering no more than 50 per cent of the total farm holding, should support diversification, expand the generation of renewable energy and help tackle climate change.
CHARITIES Introduction of a scheme to compensate charities for the VAT they incur on their inputs. It will be introduced in 2019 in respect of VAT expenses incurred in 2018. Charities will be entitled to a proportion of VAT based on the level of non-public funding they receive.
Mortgage Interest Relief Tapered extension of mortgage interest relief for remaining recipients – owner occupiers who took out qualifying mortgages between 2004 and 2012. 75% of the existing 2017 relief will be continued into 2018, 50% into 2019 and 25% into 2020. The relief will cease entirely from 2021.
VACANT SITES The current 3 per cent levy rate that applies in the first year will be increased to 7 per cent in the second and subsequent years. What this means in practical terms is that any owner of a vacant site on the register who does not develop their land in 2018 will pay the 3 per cent levy in 2019 and then become liable to the increased rate of 7 per cent from 1 January 2019. If they continue to hoard their land in 2019, they will pay 7 per cent in 2020, resulting in an effective vacant site levy of 10 per cent over the two years. The 7 year period owners must retain qualifying assets to enjoy full relief from Capital Gains Tax will be reduced to 4 years.
PRE-LETTING EXPENSES – RENTED RESIDENTIAL PROPERTY To encourage owners of vacant residential property to bring that property into the rental market, a new deduction is being introduced for pre-letting expenses of a revenue nature incurred on a property that has been vacant for a period of 12 months or more. A cap on allowable expenses of €5,000 per property will apply, and the relief will be subject to clawback if the property is withdrawn from the rental market within 4 years. The relief will be available for qualifying expenses incurred up to the end of 2021
JMCG Budget 18 171017 8XDL.indd 3-4
Benefit in Kind on Electric Vehicles A 0% benefit-in-kind (BIK) rate is being introduced for electric vehicles for a period of 1 year. This will allow for a comprehensive review of benefit in kind on vehicles which will inform decisions for the next Budget. Electricity used in the workplace for charging vehicles will also be exempt from benefit in kind.
Brexit Loan Scheme A loan scheme of up to €300m will be available at a competitive rate to SMEs, including food businesses given their unique exposure to the UK market, to help them with their short-term working capital needs. This will be done in conjunction with the Department for Business, Enterprise & Innovation and the Department for Agriculture, Food and the Marine.
HOUSING & DEVELOPMENT • Rollout of HAP Place Finder Service across the country. • €750 million of the Ireland Strategic Investment Fund will be made available for commercial investment in housing finance. These funds will be accessible to a new vehicle to be known as Home Building Finance Ireland or H.B.F.I. for short. HBFI will increase the availability of debt funding on market terms to commercially viable residential development projects whose land owners want to build homes. • The stamp duty on commercial property transactions has been increased from 2% to 6 % effective immediately. In relation to commercial land purchased for the development of housing a stamp duty refund scheme will be introduced because of the housing supply challenge. The refund will be subject to certain conditions, including a requirement that developers will have to commence the relevant development within 30 months of the land purchase. Details will be set out in the Finance Bill.
Maximum Weekly Rates1
Social Insurance Payments
Personal Rate
2017
2018
Qualified Child Increase
Increase for a Qualified Adult
2017
2018
2017/2018
State Pension (Contributory) - Under Age 80 €238.30 €243.30 €158.802 €162.10* - Aged 80 and over €248.30 €253.30 €213.503 €218.00** Widow’s/Widower’s/Surviving Civil Partner’s (Contributory) Pension/Deserted Wife’s Benefit - Under Age 66 €198.50 €203.50 - Aged 66 and under Age 80 €238.30 €243.30 - Aged 80 and over €248.30 €253.30 Invalidity Pension €198.50 €203.50 €141.70 €145.30 Telephone Support Allowance €2.50 per week with effect from June 2018 Carer’s Benefit/Constant Attendance Allowance €210.00 €215.00 Disablement Benefit €224.00 €229.00 Jobseeker’s/Illness/Health & Safety/Injury Benefit €193.00 €198.00 €128.10 €131.40 Maternity/Adoptive Benefit/Paternity €235.00 €240.00 Death Benefit - Under Age 66 €223.50 €228.50 - Aged 66 and under Age 80 €242.70 €247.70 - Aged 80 and over €252.70 €257.70
Social Assistance Payments
2017
2018
2017
2018
€31.80 €31.80
€31.80 €31.80 €31.80 €31.80
€31.80 €31.80 €31.80 2017/2018
State Pension (Non-Contributory) - Aged 66 and under Age 80 €227.00 €232.00 €150.00 €53.30 - Aged 80 and over €237.00 €242.00 Telephone Support Allowance €2.50 per week with effect from June 2018 Carer’s Allowance - Under Age 66 €209.00 €214.00 - Aged 66 and over €247.00 €252.00 Disability Allowance/Blind Pension €193.00 €198.00 €128.10 €131.40 Widow’s/Widower’s/Surviving Civil Partner’s (Non-Contributory) Pension €193.00 €198.00 One-Parent Family Payment €193.00 €198.00 Pre-Retirement/Deserted Wife’s Allowance €193.00 €198.00 €128.10 €131.40 Jobseeker’s Allowance - Aged 26 or over €193.00 €198.00 €128.10 €131.40 - Aged 25 €147.80 €152.80 €128.10 €131.40 - Aged 18 -24 €102.70 €107.70 €102.70 €107.70 Supplementary Welfare Allowance - Aged 26 or over €191.00 €196.00 €128.10 €131.40 - Aged 25 €147.80 €152.80 €128.10 €131.40 - Aged 18 -24 €102.70 €107.70 €102.70 €107.70 Farm Assist €193.00 €198.00 €128.10 €131.40 1 Commencement date of rate increases is week beginning 26 March 2018 2 For those under age 66 years 3 For those over 80 years or over
€31.80 €31.80
€31.80 €31.80 €31.80 €31.80 €31.80 €31.80 €31.80 €31.80 €31.80
€31.80
Sugar Tax
Farming
A tax on sugar sweetened beverages is to be introduced on 1 April 2018. The tax will apply to sugar sweetened drinks with a sugar content between 5 grams and 8 grams per 100ml at a rate of 20c per litre. A second rate will apply for drinks with a sugar content of 8 grams or above at 30c per litre.
• To facilitate the intergenerational shift in farm ownership and management, the consanguinity stamp duty relief at 1 per cent for inter-family farm transfers remains for a further three years. • The exemption for young trained farmers from stamp duty on agricultural land transactions continues.
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