Budget 2007

europerson · 06-12-2006 9:55pm #1

Well, it's out!

Top rate of income tax cut to 41%.
Doubling of mortgage interest relief for first-time buyers.
Non-contributary and contributary old-age pensions up to €200 and €209.30 respectively.
50c extra on 20 cigarettes.
Health levy threshold up to €480 per week.
Minimum income required for tax to be applied increased to €8.65.
Personal/Couple's tax credit increased to €760/€520.
Employee tax credit increased to €760.
Standard income tax band widened by €2,000 per year to €34,000 for single people and €43,000 for married one-earner couples.
Alcohol duties unchanged.
Stamp duty on property unchanged.

Comments?

Cork · 06-12-2006 10:46pm

Increases for the unemployment allowance and old age pension are welcome. Increases in the tax credits are also welcome.

Changing Stamp Duty would have only boosted house prices - so not changing this was proper.

Any increase in rent relief?

nesf · 06-12-2006 11:25pm

Cork wrote:

Any increase in rent relief?

From RTE's info on the speech:

Budget Speech wrote:

In addition, I propose to increase the rent relief for those living in private rented accommodation by more than the rate of inflation to assist those facing increased rental costs.

gurramok · 07-12-2006 12:15am

Cork wrote:

Increases for the unemployment allowance and old age pension are welcome. Increases in the tax credits are also welcome.

Yeh, just over €8 a month extra for 80% of the workforce is lovela

peepingtom · 07-12-2006 9:29am

can anyone tell me how the mortgage relief will work please? Mortgage relief is set to double for 1st time buyers. Does this mean future first time buyers, current first time buyers, or both?

Thanks
Matt

eth0_ · 07-12-2006 9:42am

I find it very hard to believe that 80% of the workforce are on the lower tax band!

quazzy · 07-12-2006 10:40am

peepingtom wrote:

can anyone tell me how the mortgage relief will work please? Mortgage relief is set to double for 1st time buyers. Does this mean future first time buyers, current first time buyers, or both?

Thanks
Matt

Both future and Current First Time Buyers will avail of this relief.

In general, for a single person, the relief is about €65-70 per month.
But now this will double to €140 ish per month

So, basically, after you pay your monthly mortgage payment, you should get some money back within a few days to your bank account.

Hope this helps.

Q

Victor McDade · 07-12-2006 10:53am

Im just glad i dont smoke :eek:

peepingtom · 07-12-2006 10:55am

thanks for clearing that up quazzy ... cheers

gurramok · 07-12-2006 2:55pm

quazzy wrote:

Both future and Current First Time Buyers will avail of this relief.

In general, for a single person, the relief is about €65-70 per month.
But now this will double to €140 ish per month

So, basically, after you pay your monthly mortgage payment, you should get some money back within a few days to your bank account.

Hope this helps.

Q

Well, there is some confusion about that.

The experts on AAM reckon the relief is only given of the amount of interest you pay in a given year rather than given the full whack no matter what.

Like if you pay €10k a yr in interest, its 20% of that €10k you get rather than the €16k, hard to find definite info yet on which scenario it is.

The_Minister · 11-12-2006 12:49am

It was a balenced budget all in all. Nothing that will butcher and skin the Celtic Tiger.

quazzy · 11-12-2006 10:55am

peepingtom wrote:

thanks for clearing that up quazzy ... cheers

Happy to help.

I just hope my assumption is correct.

I only basing this on my own mortgage and a few of my family / friends in the same boat.

nesf · 11-12-2006 11:33am

quazzy wrote:

Happy to help.

I just hope my assumption is correct.

I only basing this on my own mortgage and a few of my family / friends in the same boat.

I think that you are right. Both from experience and remembering reading it somewhere. I'm not 100% though...