Tax Facts – Budget 2020

Income Tax 2020

Year 2020
Tax Credits
Standard Rate

20%

Marginal Rate

40%

Standard Rate Band
Single/Widowed – No dependant children

€35,300

Single/Widowed – With dependant children

€39,300

Married or in a Civil Partnership – one income

€44,300

Married or in a Civil Partnership- two incomes*Increase is lower of €26,300 and income of lower earning spouse.

€44,300

+

€26,300*

Tax Credits
Single Person

€1,650

Married

€3,300

Widowed(no dependant children)

€2,190

Additional Credit for one Parent Family Widowed & Other

€1,650

PAYE

€1,650

Blind Allowance

€1,650

Dependant Relative

€70

Age Allowance -65 & over

€245

Home Carer’s Allowance

€1600

Exemption Limits
Aged 65 + Single/Widowed

€18,000

Aged 65 + Married

€36,000

Universal Social Charge

Income Bands 2020

2020

Employed

Self employed

First €12,012

0.5%

0.5%

Next €7,862

2%

2%

Next €50,170  4.50%*  4.50%*

Balance(>€100,000 8%

11%

*Individuals who have income from self-employment that exceeds €100,000 in a tax year are subject to a 3% surcharge. A USC rate of 11% therefore applies to any income in excess of €100,000 . USC does not apply where total income does not exceed €13,000 or income that is already subject to DIRT.*rate reduced to 2% if over 70 and income is above €12,012 but below €60,000

Capital Gains Tax

2020

Rate 33%

Annual Exemption for Individuals €1,270
Retirement Relief €500,000(limit)
Tax Year Expenditure Incurred

Disposal in year ending

31/12/2003 or later tax years

1988/89

1.553

1989/90

1.503

1990/91

1.442

1991/92

1.406

1992/93

1.356

1993/94

1.331

1994/95

1.309

1995/96

1.277

1996/97

1.251

1997/98

1.232

1998/99

1.212

1999/00

1.193

2000/01

1.144

2001

1.087

2002

1.049

Indexation only applies for periods of ownership up to 31/12/2002.

Corporation Tax Rates

2020

Trading Income

12.5%

Non-Trading Income

25%

Capital Acquisitions Tax

2020*

Threshold Relationship
€335,000 Child, or, minor child of a deceased child.
€32,500 Brother, sister, child of a brother or sister, lineal ancestor or descendant.
€16,250 Other
Tax Rate 33%
*Applies with effect from 09/10/2019. All benefits received since 5/12/1991 taken into a/c for threshold.
Annual Gift Exemption €3,000

Tax on Investment Products

2020

DIRT
33% Interest credited at least annually
33% Interest NOT credited at lest annually
EXIT TAX
41% Collective Investments
41% Corporate Investors
60% Personal Portfolio/Wrappers

 

Important Tax Dates

2020

Income Tax

Mid November 2020

 – Return Filing date and Payment of Balance of Income Tax for 2019.

– Preliminary Income Tax due for 2020

– Deadline for Online Returns

Capital Gains Tax
??/12/2020

-Payment of CGT on disposals made in the period 1st January 2020 to 30th November 2020

??/01/2020

– Payment of CGT on disposals made in December 2020

 

Disclaimer: Eamon Porter trading as Aspire Wealth Management accepts no responsibility for any of the information contained herein. The information listed above was correct at the time of preparation (October 2019), and is based on the Budget 2020 Statement – October 2019.

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