Forgive our automated morning greeting, we are coming to you this evening as the leaks, kites, promises and haggling end.
Budget 2027 was published this afternoon to a decidedly muted response.
For all the money committed in various areas, and the income tax packed swelled considerably in the final hours, Conor Pope describes this as “Schrödinger’s budget – simultaneously generous and mean”.
As Conor writes, for all the money spent, pretty much no one will be better off in 2027, once the relentless rate of inflation is factored in.
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If there are winners, they are likely to be working couples in a household where both earn more than €50,000 a year. The combined benefits for such a double-income household will be €1,500 annually.
The budget fired money around in various directions to try to address the cost of living crisis and react to the demand of a whole range of sectors, but you would search hard to find a central theme, writes Cliff Taylor. Perhaps it is responding to events and that is in part understandable, given the big increases in energy prices and their impact on inflation. But budgets are about priorities and when the package emerges from fractious last-minute negotiations between the two big parties of Government, some of these can be fudged or lost.
The Government’s decision to reduce the standard rate of capital gains tax (CGT) – a central plank of the business measures outlined in the budget – will cost the exchequer an estimated €186 million in a full year, making it the single most expensive measure announced outside the personal income tax package, writes Ian Curran.
[ Budget 2027 main pointsOpens in new window ]
So what of the measures? Fiona Reddan, in her examination of what the measures mean for different demographics, reports that the big change is the standard rate band shifting by €2,500 to €46,500 from January.
This it means that someone earning at least €46,500 will now save €500 a year, thanks to paying more of their income at the lower rate of 20 per cent.
Workers will also save thanks to the €125 increase to personal, employee and earned income credits, which will go up to €2,125.
No change was made to tax rates, which means our top marginal rate is now 52.35 per cent for PAYE workers.
We (finally) got more details on the oft flagged personal investment accounts with savers able to invest €12,000 a year tax-free into the Governments’ new personal investment accounts.
People will be able to receive greater amounts in gifts or inheritance without paying tax under changes announced in the budget but there has been no wider reform.
Smokers face another price hike (€1 for a packet of 20), while a 20 cent per ml increase was applied to in vaping products, but excise duties on alcohol are untouched.
The decision to increase most Vehicle Registration Tax (VRT) rates by 1 per cent will affect prices for nine of the 10 bestselling models in the Irish new car market. Cars with CO2 emissions over 80g/km will see a 1 per cent increase in VRT from January 1st next year, impacting tax bands three to 20.
- On Wednesday morning, Dominic Coyle from The Irish Times and experts from PwC will be on hand to answer your questions from 7am. You can submit your questions here:
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