Budget 2009 Breakfast briefing presentation

1. Budget “Nothing to fear, but fear itself!”
2009
Breakfast Briefing
Riverside Park Hotel, 15/10/2008
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2. Budget 2009 Breakfast Briefing
OVERVIEW
Economic Overview
Impact for Individuals
Impact on Business
Other Budget Changes
Company Law Developments
Tax Policy & Practice
Year End Tax Planning
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3. Budget 2009 Breakfast Briefing
Economic Overview
Where next for the economy?
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4. Budget 2009 Breakfast Briefing
What
goes
up,.....
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5. Budget 2009 Breakfast Briefing
The credit crunch
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6. Budget 2009 Breakfast Briefing
Exchange Rate Movements
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7. Budget 2009 Breakfast Briefing
Consumer confidence
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8. Budget 2009 Breakfast Briefing
Positives
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9. Budget 2009 Breakfast Briefing
Budget 2009 – Impact for
Individual Taxpayers
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10. Budget 2009 Breakfast Briefing
Main Changes
– Levy on All Income
– Restriction of Pension Contribution Limit
– Tax on Savings
– Mortgage Interest Relief
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11. Budget 2009 Breakfast Briefing
Income Tax Levy
Rate
Income Levy %
Income up to €100,000 1%
Balance €100,100 2%
Payable by everyone
• What can you do to reduce your exposure:
• Reduce salary and maximise expenses
• Avail of e-working allowances (pay for your staff
broadband at home instead of a pay rise)

12. Budget 2009 Breakfast Briefing
Main Tax Band
Existing Proposed Increase
Standard Rate Tax Bands € € €
Single/Widowed Personal 35,400 36,400 1,000
Married, One Income 44,400 45,400 1,000
Married , Two Incomes 70,800 72,800 2,000
One Parent/Widowed Parent 39,400 40.400 1,000
PRSI Ceiling 50,700 52,000 1,300
No increase in tax credits
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13. Budget 2009 Breakfast Briefing
Restriction of Pension Contribution Limit
Existing Proposed Decrease
Contribution Limit €275,239 €150,000 €125,239
Effect % Relief Reduction in Tax Effect
Limit @ 41%
Under 30 15% 18,786 7,890
30 to 39 20% 25,048 10,520
40-49 25% 31,310 13,150
50 to 54 30% 37,572 15,780
50 to 59 35% 43,834 18,410
60 and over 40% 50,096 21,040
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14. Budget 2009 Breakfast Briefing
Restriction of Pension Contribution Limit
Impact on preliminary tax liability
31/10/2009 will be last year higher limit can be availed
Other pension changes
No indexation of the Standard and Personal Fund
Thresholds'
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15. Budget 2009 Breakfast Briefing
Tax on Savings
Existing Proposed Increase
Deposit Interest Retention Tax 20% 23% 3%
Life Assurance policies and 23% 26% 3%
investments funds
Effective from 01/01/2009
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16. Budget 2009 Breakfast Briefing
Personal Taxation
Mortgage Interest Relief increased and the period over which ‘enhanced
first time buyer’ relief may be claimed is the first seven years of the
mortgage
Existing Proposed Maximum Benefit
Single Married
Year s 1 and 2 20% 25% €500 €1,000
Years 3 to 5 20% 22.5% €250 €500
Non first time buyers 20% 15% €500 €1,000
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17. Budget 2009 Breakfast Briefing
Personal Taxation
Married Couple , Two Incomes earning €60k, Two Children
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18. Budget 2009 Breakfast Briefing
Budget 2009 – Impact for Business
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19. Budget 2009 Breakfast Briefing
Main Changes
Increase in VAT rate
Increase in CGT rate
3 year exemption from Corporation & Capital gains tax
for start up business
Capital allowance for some green technologies
Stamp Duty reduction on commercial buildings
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20. Budget 2009 Breakfast Briefing
Change in VAT Rates
Existing Proposed Increase
Standard Rate VAT 21% 21.5% 0.5%
Reduced Rate 13.5% 13.5% No Change
Flat Rate Farmers 5.2% 5.2% No Change
Changes take effect from 01 December 2008
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21. Budget 2009 Breakfast Briefing
Capital Gains Tax
Existing Proposed Increase
Capital Gains Tax 20% 22% 2%
Changes take effect from 15th October 2008
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22. Budget 2009 Breakfast Briefing
Corporation Tax
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23. Budget 2009 Breakfast Briefing
Corporation Tax
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24. Budget 2009 Breakfast Briefing
Capital Allowances Scheme for certain energy-
efficient equipment
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25. Budget 2009 Breakfast Briefing
Stamp Duty on Commercial Buildings
Aggregate Consideration Rate of Duty
Up to €10,000 Exempt
€10,001 to €20,000 1%
€20,001 to €30,000 2%
€30,001 to €40,000 3%
€40,001 to €70,000 4%
€70,001 to €80,000 5%
Over €80,000 6%
The reduction to 6% will provide attractive to foreign investments
funds
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26. Budget 2009 Breakfast Briefing
Other Budget Changes
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27. Budget 2009 Breakfast Briefing
Move to electronic transactions
Existing Proposed Increase
Stamp Duty on Cheques €0.30 €0.50 €0.20
ATM Cards €5 €2.50 €2.50
Debit Cards €5 €2.50 €2.50
Combined ATM/Debit Cards €10 €5.00 €5.00
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28. Budget 2009 Breakfast Briefing
Move to electronic transactions
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29. Budget 2009 Breakfast Briefing
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30. Budget 2009 Breakfast Briefing
Other Budget Changes
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31. Budget 2009 Breakfast Briefing
Other Budget Changes
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32. Budget 2009 Breakfast Briefing
Other Topical Issues
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33. Budget 2009 Breakfast Briefing
VAT treatment of forfeited deposits
Relevant to hotels and other business which receive
deposits as part of their normal business
Where the deposit is forfeited and retained it is treated
as a cancelation charge and exempt from VAT
The VAT paid on the deposit can be reclaimed
VAT can be reclaimed for prior years subject to the four
year rule.
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34. Budget 2009 Breakfast Briefing
VAT Reverse Charge for Principal
Contractors and Sub-contractors
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35. Budget 2009 Breakfast Briefing
More Information
www.perspective.ie/whatsnew.html
www.perspective.ie/budget.html
www.budget.gov.ie
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36. Budget 2009 Breakfast Briefing
Unit B4a, Enniscorthy Bus. Prk
Old Dublin Road, Enniscorthy
Co. Wexford.
michael@perspective.ie
www.perspective.ie
053 9242842
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