Income Tax

MAIN PERSONAL TAX CREDITS   2008 EURO 2009 EURO Personal Tax Credit     Single Person 1,830 1,830 Married Couple/Single Parent 3,660 3,660 Employee PAYE Credit (1) 1,830 1,830 Widow(er) without dependent child 2,430 2,430 One Parent Family (widowed person) 1,830 1,830 Incapacitated Child 3,660 3,660 Widowed Parent Bereaved in 2008 2007 2006 2005 2004 2003 4,000 3,500 3,000 2,500 2,000 - 4,000 3,500 3,000 2,500 2,000 - (1) Not available to proprietary Directors and the self employed       Age Credit     Single/Widowed Person 325 325 Married 650 650       Blind Persons Credit     Married (both spouses blind) 3,660 3,660 Single or married (one spouse blind) 1,830 1,830       Other credits     Home Carer's Credit (max) 900 900 Incapacitated Child (max) 3,660 3,660 Dependent Relative (max) 80 80 Trade Union Subs (max) 70 70 Service Charges (max) 80 80       Home Loans - Standard Rate     First-Time Buyer - Years 1&2 - 25%     Single Max 2,000 2,500 Married Max 4,000 5,000 Widow(er) Max 4,000 5,000       First-Time Buyer - Years 3 - 5 - 22.5%     Single Max 2,000 2,250 Married Max 4,000 4,500 Widow(er) Max 4,000 4,500       First-Time Buyer - Years 6 & 7 - 20%     Single Max 2,000 2,000 Married Max 4,000 4,000 Widow(er) Max 4,000 4,000       Non-First Time Buyer     Single Max 600 450 Married Max 1,200 900 Widow(er) Max 1,200 900       Rent Relief     Under 55 - Single 400 400 Under 55 - Married/Widow(er) 800 800 Over 55 - Single 800 800 Over 55 - Married/Widow(er) 1,600 1,600 INCOME TAX RATES Single & Widowed Persons: No Dependent Children 2008 EURO 2009 EURO 20% on first 35,400 36,400 Balance 41% 41%       Single & Widowed Persons: Dependent Children     20% on first 39,400 40,400 Balance 41% 41%       Married Couples: One Income     20% on first 44,400 45,400 Balance 41% 41%       Married Couples: Two Incomes*     20% on first 70,800 72,800 Balance 41% 41%       * Excess over Euro 45,400 non transferable between spouses           Tax Allowance     Cost of employing carer for incapacitated individual allowed at marginal rate of tax 50,000 50,000 Rent-a-Room Relief (private residence) 10,000 10,000 Film Investment 25,400 25,400 BES Scheme (max relief) 150,000 150,000 INCOME LEVY This Income Levy is payable on gross income from all sources before any tax reliefs, capital allowances, losses or pension contributions. The 2009 annual rates and thresholds of the income levy are as follows: 1.67%: Income up to €75,036 per annum 3%: Income between €75,037 and €100,100 per annum 3.33%: Income between €100,101 and €174,980 per annum 4.67%: Income between €174,981 and €250,120 per annum 5%: Income in excess of €250,120 per annum Rates and thresholds: 1 January 2009 to 30 April 2009   2008 EURO 2009 EURO Income under €100,100 Nil 1%* Income €100,100 to €250,120 Nil 2% Income over €250,120 Nil 3% * No charge for welfare payments and under 65's if income is less than €18,304; no charge for over 65's if income is less than €20,000 (single) or €40,000 (married) Rates and thresholds: From 1 May 2009   2008 EURO 2009 EURO Income under €100,100 Nil 1%* Income €100,100 to €250,120 Nil 2% Income over €250,120 Nil 3% Exempt Categories - the levy does not apply: Where an individual’s income for a year does not exceed €15,028 per annum. For individuals aged 65 or over where their annual income does not exceed €20,000 per annum For Full Medical card holders To Social Welfare payments MORTGAGE INTEREST - TAX RELIEF 2008: First-time buyers and non-first time buyers – mortgage interest relief is due at the standard rate of tax 20% subject to the upper limits in the following chart. 2009: From 1 January 2009, First-time buyers - the rate of mortgage interest relief is increased from 20% to 25% in years 1 and 2 and to 22.5% in years 3, 4 and 5. The relief remains unchanged at 20% for years 6 and 7 of the mortgage. First time buyers relief ends after year 7. Non-first time buyers - the rate of mortgage relief is reduced from 20% to 15%. With effect from 1 May 2009 the number of tax years in respect of which mortgage interest relief may be claimed is 7 years for first time and non-first time buyers. Relief available for loan interest on secured and unsecured loans for the tax years 2008 and 2009 Personal Circumstances 2008 EURO All Others Single Max 10,000 3,000 Married/Widowed 20,000 6,000 EXEMPTION LIMITS Single/Widowed 2008 EURO 2009 EURO Under 65 years of age 5,210 5,210 65 or over 20,000 20,000 Married     Under 65 years of age 10,420 10,420 65 or over 40,000 40,000 Marginal Relief will continue to apply where income does not greatly exceed the relevant exemption limit. The above exemption limits are increased by €575 for each of the first two dependent children and by € 830 for the third and subsequent children.

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