The restriction relating to farmers with off-farm self-employed income is being removed. Income averaging allows eligible farmers to calculate their taxable income as the average of their income in the current year and the previous 4 years, over a 5 year cycle.
Stock relief for farmers is being extended for 3 years until the end of 2021. This includes 3 measures:
– the general 25% stock relief on income tax
– the 50% stock relief for registered Farm Partnerships
– the 100% stock relief for certain Young Trained Farmers.
Stamp Duty relief
Stamp duty relief for Young Trained Farmers is being extended for a further 3 years until 31/12/2021.
Earned Income Tax Credit
For self-employed tax payers, including farmers, who do not receive the PAYE Tax Credit (€1,650), the Earned Income Tax Credit of €1,150 is being increased by €200 to €1,350 from 2019.
The Standard Rate Cut Off Point – the point at which income attracts the higher rate of income tax – will rise in 2019 by €750. The cut-off point for a single earner will be €35,300, for a married couple (single income)will be €44,300.
Universal Social charge
The rates of USC are being amended as follows:
The 2% rate band is increased at the upper end by €502 to €19,874.
The 4.75% rate is to reduce to 4.5%
Tax credits & reliefs
The Home Carer Credit is to increase by €300 to €1,500.
Vehicle Registration Tax
A 1% VRT surcharge is being brought in for diesel passenger vehicles registered from 1/1/2019.
The VRT relief for conventional hybrids and plug-in electric hybrids is being extended until the end of 2019.
Capital Acquisitions Tax
The Group A tax free threshold, which applies primarily to gifts and inheritances from parents to children, is being increased from €310,000 to €320,000. This applies to gifts or inheritances received on or after 10th October 2018.
From 1/1/2019 the weekly income threshold for the higher rate of employers’ PRSI will increase from €376 to €386.
VAT rate applying to tourism activities will increase from 9% to 13.5% from 1/1/2019