Budget 2021 Announcement

• A new Covid Restrictions Support Scheme (CRSS) will be launched which aims to support businesses which have either been (i) prohibited from operating; or (ii) only been able to trade at significantly reduced levels. The scheme will run from today to 31 March 2021. The scheme will provide a weekly payment of up to €5,000 in the form of an advanced credit for tax deductible trading expenses. Further details on the scheme will be provided in the Finance Bill.

• The debt warehousing scheme will be expanded to include the balance of 2019 Income Tax and 2020 preliminary tax for adversely affected self-assessed taxpayers to allow such taxpayers to defer payment for a period of a year with no interest applying.

• Temporary reduction of the VAT rate for the Tourism and Hospitality sector from 13.5% to 9%.

• Commitment to the extension of the Employment Wage Subsidy Scheme (or adoption of a similar scheme) until the end of 2021.

• No change in the CGT rate.

• Minor improvements to the CGT Entrepreneurs relief - the ordinary shareholding requirement is to be amended so that an individual who has owned at least 5% of the shares for a continuous period of any three years qualifies for this relief. Previously, a person had to own at least 5 % for a continuous period of 3 years in the 5 years immediately prior to the disposal.

• No change in the Income Tax rates, but a slight adjustment to the USC bands to help those on the minimum wage.

• Self-employed Income tax credit (Earned Income Credit) to be increased to match the PAYE credit at €1,650.

If you would like to discuss any of the above measures in more detail, please contact a member of our team.