Basic Tax Information

• Personal Tax Credits
• Income Levy - 2009
• Rent-a-Room Relief
• Childcare Services
• Rent Relief for Private Rented Accommodation
• Tax Relief for Loan Interest (Secured and Unsecured)
• Medical Insurance Premiums
• Revenue Job Assist
• Tax Relief on Service Charges
• Home Carer’s Tax Credit
• Trade Union Subscriptions
• Health/Medical Expenses Relief
• Tuition Fees
• PRSI & Health Contributions - Employers/Employees
• Current Rates of Stamp Duty
• Social Welfare 2009

Personal Tax Credits

The following chart gives details of the main personal tax credits for the tax years 2008 and 2009

Details of personal tax credits for 2008/2009
Personal Circumstances	Tax Year 2008	Tax Year 2009
Single Person	€1,830	€1,830
Married Person	€3,660	€3,660
Widowed Person qualifying for One Parent Family Tax Credit	€1,830	€1,830
Widowed Person without dependent children	€2,430	€2,430
Widowed Person in year of bereavement	€3,660	€3,660
One-Parent Family, Widowed, Deserted, Separated or Unmarried (with qualifying dependent children, see note 1)	€1,830	€1,830
Widowed Parent Bereaved in 2008	---	€4,000
Widowed Parent Bereaved in 2007	€4,000	€3,500
Widowed Parent Bereaved in 2006	€3,500	€3,000
Widowed Parent Bereaved in 2005	€3,000	€2,500
Widowed Parent Bereaved in 2004	€2,500	€2,000
Widowed Parent Bereaved in 2003	€2,000	---
Home Carer (max.)	€900	€900
PAYE Tax Credit	€1,830	€1,830
Age Tax Credit if Single/Widowed	€325	€325
Age Tax Credit if Married	€650	€650
Incapacitated Child (See note 1)	€3,660	€3,660
Dependent Relative (See note 1)	€80	€80
Blind Tax Credit - Single	€1,830	€1,830
Blind Tax Credit - One Spouse Blind	€1,830	€1,830
Blind Tax Credit - Both Spouses Blind	€3,660	€3,660
Blind Tax Credit- Additional Allowance for Guide Dog	€825*	€825
Incapacitated Person - Allowance for Employing a Carer	€50,000*max	€50,000*max

* Relief in respect of a Guide Dog (2008 only) and for Employing a Carer (2008 and 2009) are allowable at the individual's highest rate of tax, i.e. 20% or 41%.

Note 1

Child or relatives income limits regarding tax credits
The Child's/Relative's income limits	Tax Year 2008	Tax Year 2009
One Parent Family Tax Credit	0	0
Incapacitated Child Tax Credit	0	0
Dependent Relative Tax Credit	€13,473*	€13,837*

* In the case of Dependent Relative Tax Credit, if the relative's income exceeds the relevant limit no tax credit is due.

Exemption Limits

Exemption limits for single/widowed, married and additional for dependent children in 2008 and 2009
Personal Circumstances	Tax Year 2008	Tax Year 2009
Single/ Widowed 65 years of age or over	€20,000	€20,000
Married 65 years of age or over	€40,000	€40,000
Single/Widowed/Married 65 years of age or over Additional for 1st and 2nd dependent child	€575	€575
Single/Widowed/Married 65 years of age or over Additional for each subsequent dependent child	€830	€830
Marginal Relief Tax Rate	40%*	40%*

*For 2008 and 2009 the Marginal Relief Tax Rate only applies to persons 65 years of age or over.

Tax Rates and Tax Bands

Tax rates and bands applicable to your personal circumstance in tax year 2008 and tax year 2009
Personal Circumstances	Tax Year 2008	Tax Year 2009
Single / Widowed without dependent children	€35,400 @ 20%, Balance @ 41%	€36,400 @ 20%, Balance @ 41%
Single / Widowed qualifying for One Parent Family Tax Credit	€39,400 @ 20%, Balance @ 41%	€40,400 @ 20%, Balance @ 41%
Married Couple - one spouse with income	€44,400 @ 20%, Balance @ 41%	€45,400 @ 20%, Balance @ 41%
Married Couple - both spouses with income	€44,400 @ 20% (with an increase of €26,400 max), Balance @ 41%	€45,400 @ 20% (with an increase of €27,400 max), Balance @ 41%

Note: The increase in the standard rate tax band is restricted to the lower of €26,400 in 2008, €27,400 in 2009 or the amount of the income of the spouse with the lower income. The increase is not transferable between spouses.

Income Levy - 2009

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

Applicable: 1 January 2009 to 30 April 2009
Income Levy Thresholds	Rate
Income up to €100,100 per annum	1%
Income between €100,101 to €250,120 per annum	2%
Income in excess of €250,120 per annum	3%

Rates and thresholds: from 1 May 2009

Applicable: 1 May 2009
Income Levy Thresholds	Rate
Income up to €75,036 per annum	2%
Income from between €75,037 to €174,980 per annum	4%
Income above in excess of €174,980 per annum	6%

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

Rent-a-Room Relief

Where a room (or rooms) in a person’s sole or main residence is (are) let as residential accommodation, gross annual rental income of up to €10,000 in 2008 and 2009 is exempt from tax. Relief in respect of mortgage interest relief is not affected. The relevant Capital Gains Tax/Stamp Duty provisions are also not affected.

Childcare Services

Childcare Services relief is a scheme of tax relief for income arising from the provision of certain childcare services. When the gross annual income from the provision of childcare services does not exceed €15,000 in 2008 or 2009 the income is exempt from tax. The childcare service must be provided in the carer's home, not the children's home and no more than 3 children may be cared for at any time.

Rent Relief for Private Rented Accommodation

Relief is due at the standard rate of tax (20%) in the tax years 2008 and 2009 subject to the following upper limits:
Personal Circumstances	Tax Year 2008	Tax Year 2009
Single Under 55 max.	€2,000	€2,000
Single Over 55 max.	€4,000	€4,000
Widowed/ Married under 55 max.	€4,000	€4,000
Widowed/ Married over 55 max.	€8,000	€8,000

Tax Relief for Loan Interest (Secured and Unsecured)

Tax Relief at Source (TRS) on Secured loans

Tax relief for home mortgage interest (secured loans) is not given through the tax system but is instead granted at source (TRS). Mortgage repayments are reduced by the amount of the tax credit due. For example, if the interest element of your mortgage repayment per month is say €500, your mortgage lender will reduce your monthly mortgage payment by €100 per month. This reduction is the same as giving tax relief at the standard rate of tax (20%).

Any future adjustments in your tax relief will be made automatically by your mortgage lender. It is not necessary to claim relief on your annual tax return or to contact your local Revenue office.
If, however, you are making mortgage repayments and not receiving Tax Relief at Source, you should contact TRS Section, Collector-General’s Division at LoCall 1890 46 36 26 who will arrange for the relief to come into effect.

Unsecured Home Loans

Relief for interest payments made on unsecured Home Loans used for qualifying purposes, i.e. repair or improvement of your sole or main residence can be claimed by review at the end of the tax year.
If, however, you are paying interest on a qualifying private residence mortgage in excess of the ceiling for relief, listed below, and you are receiving Tax Relief at Source on this interest then there will be no additional relief due in respect of a qualifying unsecured home loan.

Amount of Relief Available

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	First Time Buyers	All Others
Single	€10,000	€3,000
Married/Widowed	€20,000	€6,000

Note: Amounts shown in the above table are the ceiling amounts for the years 2008 and 2009

Medical Insurance Premiums

Tax Relief at Source (TRS)
Tax relief for medical insurance premiums paid to authorised insurers is granted at source (TRS). Subscribers will pay a reduced premium (80% of the gross amount) to the authorised medical insurer. This reduction is the same as giving tax relief at the standard rate of tax (20%).
Employees whose medical insurance premiums are paid on their behalf, by their employer, as a Benefit-in-Kind, will not have been allowed tax relief at source. To claim the relief due it will be necessary to notify your local Revenue Office by phone, email or in person with the relevant details or by completing your annual tax return.

Revenue Job Assist

Additional tax relief at the individual’s highest rate of tax, i.e. 20% or 41% in 2008 and 2009, is available for people who have been unemployed for one year or more and who take up a qualifying job. Relief in the first year of employment is €3,810 plus €1,270 for each child, reducing to two-thirds of that amount in Year 2 and one-third in Year 3. This relief is also available for persons who have been in receipt of either Disability Allowance, Blind Person’s Pension or Invalidity Pension for 12 months or more, Illness Benefit for 3 years or more or released after 12 months or more in prison.

Tax Relief on Service Charges

Income tax relief is available for individuals who pay local authority and other service charges. Relief is given for service charges paid in full and on time in the previous calendar year

Home Carer’s Tax Credit

A tax credit at the standard rate of tax (20%) in the tax years 2008 and 2009 is available for married couples where:

• One spouse (the 'home carer') works in the home caring for one or more dependent persons, i.e. a child for whom they are entitled to Social Welfare child benefit, a person aged 65 or over, or a person who is permanently incapacitated by reason of mental or physical infirmity and the qualifying person normally resides with the couple for the year.
• The home carer’s income is not in excess of €5,080. A reduced tax credit applies where the income is between €5,080 and €6,880 in 2008 or 2009.

The tax credit is not available to married couples that are taxed as single persons. Neither is the tax credit available to married couples with combined incomes over €44,400 in the tax year 2008 and €45,400 in the tax year 2009 and who claim the increased standard rate tax band for dual income couples

Trade Union Subscriptions

An annual flat rate allowance of €350 at the standard rate of tax 20% (tax credit €70) is available for Trade Union subscriptions paid in 2008 and 2009. The full allowance is available annually regardless of the actual amount of the subscription paid.

Health/Medical Expenses Relief

You may claim tax relief on a Form MED 1, at your highest rate of tax, i.e. 20% / 41% in 2008 and at the standard rate of tax (20%), from 1 January 2009 (with the exception of nursing home expenses) for certain medical expenses incurred by you, on your own behalf or on behalf of another person. Most medical expenses, with some exceptions e.g. routine dental and ophthalmic care, qualify for relief.
You cannot claim relief for any expenditure which has been or will be reimbursed, e.g. by Hibernian Aviva Health, Quinn-healthcare, VHI, a Health Authority, or where a

Tuition Fees

Tax relief at the standard rate of tax (20%) in the tax years 2008 and 2009 is available for certain tuition fees. The maximum limit on such qualifying fees for the academic years 2008/2009 and 2009/2010 is €5,000.

PRSI & Health Contributions - Employers/Employees

Class A (Normal rate at which contributions are made)

Tax Year 2008
Employee’s Income chargeable as below:	Total	Employer’s rate
Earnings up to €50,700 to PRSI @ 4% plus a Health Contribution of 2%	6%	10.75%
Earnings from €50,700 to €100,100 to a Health Contribution of 2%	2%	10.75%
Earnings over €100,100 (€1,925 per week, €3,850 per fortnight & €8,342 per month) to a Health Contribution of 2.5%	2.5%	10.75%

Tax Year 2009 (applicable from 1 January 2009 to 30 April 2009)
Employee’s Income chargeable as below:	Total	Employer’s rate
Earnings up to €52,000 to PRSI @ 4% plus a Health Contribution of 2%	6%	10.75%
Earnings from €52,000 to €100,100 to a Health Contribution of 2%	2%	10.75%
Earnings over €100,100 (€1,925 per week, €3,850 per fortnight & €8,342 per month) to a Health Contribution of 2.5%	2.5%	10.75%

Tax Year 2009 (applicable from 1 May 2009 to 31 December 2009)
Employee’s Income chargeable as below:	Total	Employer’s rate
Earnings up to €75,036 to PRSI @ 4% plus a Health Contribution of 4%	8%	10.75%
Earnings over €75,036 (€1,443 per week, €2,886 per fortnight & €6,253 per month) to a Health Contribution of 5%	5%	10.75%

Employees are exempt from PRSI on the first €127 per week or €26 per week for employees on a modified PRSI rate. Employees earning €352 or less per week in 2008 or 2009 are exempt from PRSI and Health Contribution. However, where earnings exceed €352 per week in 2008 or 2009, the employee’s PRSI Free Allowance remains at €127 per week or €26 per week for employees on a modified PRSI rate. Employees earning €500 or less per week in 2008 or 2009 are exempt from Health Contribution.
Note: Recipients of a Social Welfare Widow’s or Widower’s Pension, Deserted Wife’s Benefit/Allowance or One-Parent Family Payment are exempt from paying the Health Contribution. Holders of a 'Full' Medical Card and people aged 70 and over are also exempt from this contribution.

PRSI & Health Contributions - Self-Employed

Class S (Self-Employed)

Tax Year 2008
Self Employed Income chargeable as below:	Total
3% PRSI and 2% Health Contribution on all income up to €100,100	5%
3% PRSI and 2.5% Health Contribution on all income over €100,100	5.5%

Tax Year 2009
Self Employed Income chargeable as below:	Total
3% PRSI and 3.333% Health Contribution on all income up to €75,036	6.333%
3% PRSI and 4% Health Contribution on all income from €75,036 to €100,100	7%
3% PRSI and 4.167% Health Contribution on all income over €100,100	7.167%

Self-employed persons are exempt from Health Contribution where the annual income is €26,000 or less in 2008 or 2009. The minimum annual PRSI contribution is €253.
Note: Recipients of a Social Welfare Widow’s or Widower’s Pension, Deserted Wife’s Benefit/Allowance or One-Parent Family Payment are exempt from paying the Health Contribution. Holders of a 'Full' Medical Card and people aged 70 and over are also exempt from this contribution.
Any PRSI and Health Contribution queries should be directed to Department of Social and Family Affairs, Information Service at (01) 7043000 or at www.welfare.ie

Legal Disclaimer

This leaflet is issued for information purposes and is not intended to provide a legal interpretation of the legislation involved. This leaflet is intended to describe the subject in general terms. As such, it does not attempt to cover every issue which may arise in relation to the subject. It does not purport to be a legal interpretation of the statutory provisions and consequently, responsibility cannot be accepted for any liability incurred or loss suffered as a result of relying on any matter published herein

Current Rates of Stamp Duty

Rates of Duty for Residential Property

The rates of duty applicable for residential property (whether new or second-hand) are as follows:

Table 1: Rates of duty for deeds executed on or after 5 November 2007
Aggregate Consideration exceeds €127,000*	Rate for instruments executed on or after 5 November 2007
First €125,000	Nil
Next €875,000	7%
Excess over €1,000,000	9%

* Transactions, where the consideration (or the aggregate consideration) does not exceed €127,000, are exempt from stamp duty.

Stamp Duty on Non-Residential Property

Non-Residential Property is any property other than residential property, stocks or marketable securities or policies of insurance. It includes (but is not limited to) sites, offices, factories, other business premises, shops, public houses, land and goodwill attaching to a business.
The top rate of stamp duty for non-residential property has been reduced from 9% to 6% in respect of instruments executed on or after 15 October 2008.
The revised rate structure, which will also apply to the premium payable under a lease of non-residential property, is set out in the second table below.

For instruments executed before 15 October 2008
Aggregate Consideration	Rate of Duty
Up to €10,000	Exempt
€10,001 to €20,000	1%
€20,001 to €30,000	2%
€30,001 to €40,000	3%
€40,001 to €70,000	4%
€70,001 to €80,000	5%
€80,001 to €100,000	6%
€100,001 to €120,000	7%
€120,001 to €150,000	8%
Over €150,000	9%

For instruments executed after 15 October 2008
Aggregate Consideration	Rate of Duty
Up to €10,000	Exempt
€10,001 to €20,000	1%
€20,001 to €30,000	2%
€30,001 to €40,000	3%
€40,001 to €70,000	4%
€70,001 to €80,000	5%
Over €80,000	6%

Aggregation continues to apply in determining the stamp duty liability where a transaction forms part of a larger transaction or of a series of transactions involving non-residential property. Accordingly, where the chargeable consideration is less than €80,000, the instrument should contain the normal certificate** reciting the appropriate threshold. However, where the top rate of 6% is payable there is no requirement to include a certificate in the instrument.

** It is hereby certified that the consideration (other than rent) for the sale/lease is wholly attributable to property which is not residential property and that the transaction effected by this instrument does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration (other than rent) which is attributable to property which is not residential property exceeds €10,000/€20,000/€30,000/€40,000/€70,000/€80,000

Social Welfare 2009

Retirment / Old Age Contributory Pension - Personal Rate		€230.30
Retirment / Old Age Contributory Pension -Personal Rate + Adult dependant over 66		€436.60
Widow/ Widowers Contributory Pension (under 66)		€209.80
Invalidaty Pension - Personal Rate		€209.80
Invalidaty Pension -Personal Rate + Adult dependant under 66		€359.50
Disability / Unemployment Benefit - Personal Rate		€204.30
Disability / Unemployment Benefit - Personal Rate + Adult dependant		€339.90
Increase for each Dependant Child
Old Age Retirement, Invalidity Pension		€26.00
Disability & Unemployement Benefit		€26.00
Widow / Widower's Pension		€26.00
Child Beneift (Children's Allowance)
First and Second Child	€166 per month per child
Third and subsequent	€203 per month per child