Minister for Finance, Paschal Donohoe, today announced a €17.75bn budget package for 2021. We have highlighted below some of the key measures outlined in today's budget speech.
- 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.
Please note: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.