Part two of Budget 2012 – as it happens

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Finance Minister Michael Noonan is currently delivering part two of Budget 2012 to the Dail.
SNAP – MORTGAGE INTEREST RELIEF
Increase rate of mortgage interest relief to 30 percent for First Time Buyers who took out a mortgage between 2004 and 2008.
SNAP – CAPITAL GAINS TAX
Any property purchased from midnight tonight and the end of 2013 and held for at least seven years will be relieved from Capital Gains Tax.
SNAP – STAMP DUTY
Stamp duty for commercial property transfers to be reduced from current top rate of 6 percent to a flat rate of 2 percent FROM MIDNIGHT TONIGHT
(All non-residential property, including farmland as well as commercial and industrial buildings)
SNAP – MORTGAGE INTEREST RELIEF 2
First Time Buyers who purchase a home in 2012 will get mortgage interest relief at 25% (rather than 15% signalled by previous government)
NON first time buyers will benefit from relief at 15% (rather than 10% signalled)
SNAP – PROPERTY RELATED RELIEFS
A property relief surcharge of 5 % will be imposed on investors with an annual gross income over 100,000 euro.
SNAP – UNIVERSAL SOCIAL CHARGE
From January 1 the exemption level on the charge will rise from 4,004 euro to 10,036 euro.
SO TAXPAYERS can earn just over 10,000 euro before paying the USC
Minister says benefit to 330,000 people.
SNAP – VAT
Rise in rate from 21% to 23% and guarantee no further hikes in this rate during the lifetime of this Government
Minister says with differential between here and Northern Ireland of just 3% (compared to 6.5% in 2009),  he does NOT expect increase in cross border shopping.
SNAP – CAPITAL ACQUISITIONS TAX
Increase the current rate of CAT from 25% to 30%
SNAP – CAPITAL GAINS TAX
Increase Capital Gains Tax from 25% to 30% after today
SNAP – DIRT
Increasing DIRT from 27% to 30%
SNAP – PRSI
Remove the remaining 50 percent employer PRSI relief on employee pensions
Further Broaden base of PRSI to cover rental, investment and other forms of income from 2013.
SNAP – DOMICILE LEVY
Abolishing the citizenship condition for payment of the Domicile Levy so as to ensure that “tax exiles” cannot avoid it by renouncing their citizenship.
SNAP – CARBON TAX
Increase the Carbon tax on fossil fuels from the current 15 euro per tonne to 20 euro per tonne.
WILL BE APPLIED TO PETROL AND DIESEL FROM MIDNIGHT TONIGHT
Increase on other fuels (home heating oil etc) will not come into effect until next May.
WILL NOT APPLY to sild fuel so no increase for peat and coal.
SNAP – PENSIONS
Although Troika programme commits to a move to a standard rate relief on pension contributions, no changes at this time.
SNAP – HOUSEHOLD CHARGE
100 euro household charge as announced by the Environment Minister.
Confirms waiver for those on mortgage interest supplement and for those in certain ghost estates.
Confirms provision will be made for the charge to be paid in instalments.
SNAP – MOTOR TAX
Motor Tax Increases  to generate 47 million of income.
(Details of amounts / rates will follow shortly as in back of book)
SNAP – ABSENTEEISM
Removing the existing tax ememption for the first 36 days of illness benefit and occupational injury benefit so that this incentive to absenteeism is removed.
SNAP – CIGARETTES
Pack of cigarettes to increase by 25 cent from midnight tonight
Will be applied to other tobacco on pro rate basis.
SNAP – ALCOHOL
VAT increase will apply to alcohol – but no other excise increase on alcohol.
Promises legislation to stop low cost selling of alcohol in supermarkets and off licences.
SNAP – BETTING DUTY
Will introduce legislaton to extend the betting duty to remote betting.
SNAP – CARBON TAX CHANGES
Petrol up by 1.4 cent a litre
Diesel up by 1.6 cent a litre
SNAP – MOTOR TAX – NEW RATES
Band A from 104 to 160(+56)
Band B from 156 to 225 (+69)
Band C from 302 to 330 (+28)
Band D from 447 to 481 (+34)
 

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