In our final newsletter of 2017 we take this opportunity to highlight some recent tax updates following on from Budget 2018 and remind you of some tax deadlines in early 2018.
UPDATES
Capital Gains Tax
The Capital Gains Tax, 7 year exemption, in respect of land and buildings purchased between 2011 and 2014 has now been reduced to 4 years. If you have purchased land or buildings during this period you can now sell them without paying Capital Gains Tax, once you have owned the land or buildings for at least 4 years.
Stamp Duty
Stamp Duty on shares derived from Land and Buildings has been increased to 6% from mid-December 2017. E.g. If a company is sold for €1million and its only asset is property – pre mid-December stamp duty payable would have been 1%, now a rate of 6% applies
Employer PRSI
Under Classes A & H, employers pay a combined PRSI charge and contribution to the National Training Fund Levy (NTFL). Currently the NTFL contribution for both Class A and Class H employers is 0.7% and the employer PRSI charge is 7.8%. With effect from 1 January 2018, the NTFL contribution for both Classes A and H will increase by 0.1% from 0.7% to 0.8%. There is no increase in the Employer PRSI charge. This increase will affect the rates payable by employers with employees subject to PRSI Classes A and H as follows:
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Class A Employer Rate
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Weekly Income Band
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Old Employer Rate
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New Employer Rate
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€38 to €376
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8.5%
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8.6%
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In excess of €376
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10.75%
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10.85%
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Class H (Public Sector) Employer Rate
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Weekly Income Band
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Old Employer Rate
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New Employer Rate
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All income
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10.05%
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10.15%
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REMINDERS
Small Benefits/Vouchers
Employees can be given a small benefit of up to €500 in value, tax free, each year. This benefit must not be in cash. Tax free vouchers or benefits can only be used to purchase goods or services. They cannot be redeemed for cash. If more than one benefit is given in a year, only the first one qualifies for the tax free status.
Capital Gains Tax (CGT)
If you have disposed of an asset in December 2017 which has realised a gain you must pay Capital Gains Tax on this gain by 31 January 2018. We will be issuing a reminder to clients for this and other tax deadlines via SMS in the New Year.
Local Property Tax (LPT)
The latest date for paying your LPT liability in full by cash, cheque, postal order, credit or debit card is 10 January 2018.
If you are electing to pay your LPT by direct debit instalments these payments will commence on 15 January 2018
If you are paying LPT by annual direct debit or single debit authority this payment will be taken on 21 March 2018
Payment of LPT by way of deduction from source through salary, pension, government payments etc. will commence from 1 January 2018
