Part two of Budget 2012 – as it happens

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)