Morrissey McCrann & Co.
Chartered certified accountants
and registered auditors.
Contacts
Morrissey McCrann & Co, 1 O’Curry Street, Limerick, Ireland. V94 HC80
A new Fisher tax credit was intorduced for the years 2017 to 2021 inclusive. The tax credit is calculated at 20% of an individual’s fishing income, subject to a maximum taxt credit of €1,270.
To qualify for the tax credit, the individual must spend a cumulative total of 8 hours per day for at least 80 days a year fishing at sea on a registered fishing vessel.
The tax credit is not available to fish farmers. Also, if a fisher claims this credit, then they cannot also avail of the Seafarer allowance in the same tax year
| Personal Circumstances | 2019 € | 2020 € |
| Single or Widowed or Surviving Civil Partner, without qualifying child | €35,300 @ 20% Balance @ 40% | €35,300 @ 20% Balance @ 40% |
| Single or Widowed or Surviving Civil Partner, qualifying for Single Person Child Carer Credit | €39,300 @ 20% Balance @ 40% | €39,300 @ 20% Balance @ 40% |
| Married or in a Civil Partnership, one Spouse or Civil Partner with Income | €44,300 @ 20% Balance @ 40% | €44,300 @ 20% Balance @ 40% |
| Married or in a Civil Partnership, both Spouses or Civil Partners with Income | €44,300 @ 20% with increase of €26,300 max. Balance @ 40% | €44,300 @ 20% with increase of €26,300 max. Balance @ 40% |
| Note: The increase in the rate band is capped at €26,300 or the amount of the income of the lower earner. this increase cannot be transferred between spouses or civil partners | ||
| Personal Tax Credit Test | 2019 € | 2020 € |
| Single Person | €1,650 | €1,650 |
| Married or in a Civil Partnership | €3,300 | €3,300 |
| PAYE Tax Credit | €1,650 | €1,650 |
| Earned Income Tax Credit Max | €1350 | €1500 |
| Widowed Person or Surviving Civil Partner (without qualifying child) | €2,190 | €2,190 |
| Single Person Child Carer Tax Credit | €1,650 | €1,650 |
| Incapacitated Child Credit Max | €3,300 | €3,300 |
| Blind Tax Credit | ||
| Single Person | €1,650 | €1,650 |
| Married or in a Civil Partnership – One Spouse or Civil Partner Blind | €1,650 | €1,650 |
| Married or in a Civil Partnership – Both Spouses or Civil Partners Blind | €3,300 | €3,300 |
| Widowed Parent Bereaved in 2020 | €3,300 | €3,300 |
| Widowed Parent Bereaved in 2019 | €3,600 | €3,600 |
| Widowed Parent Bereaved in 2018 | €3,150 | €3,150 |
| Widowed Parent Bereaved in 2017 | €2,700 | €2,700 |
| Widowed Parent Bereaved in 2016 | €2,250 | €2,250 |
| Widowed Parent Bereaved in 2015 | €1,800 | €1,800 |
| Age Tax Credit | ||
| Single or Widowed or Surviving Civil Partner | €245 | €245 |
| Married or in a Civil Partnership | €490 | €490 |
| Dependent Relative | €70 | €70 |
| Home Carer Tax Credit | €1,500 | €1,600 |
| Marginal Rate Reliefs | ||
| Relief (Allowed at the taxpayer’s top rate of tax) | 2019€ MAX | 2020€ MAX |
| Employing a carer | 75,000 | 75,000 |
| Mortgages taken out after 31 December 2012 do not qualify for mortgage interest relief. Mortgage interest relief is administered via Tax Relief at Source (TRS). This means that your mortgage lender gives you the benefit of tax relief on the amount of mortgage interest paid. The lender does this by reducing your mortgage repayment by the amount of tax relief you are entitled to in each tax year. Any amendments to this tax relief – for example, if there is a change in interest rates – are made automatically by your lender. |
| You do not have to be earning a taxable income to qualify for mortgage interest relief. |
| Normally, you do not claim mortgage interest relief in an annual tax return because it is given directly to you by your mortgage lender. Tax relief can still be claimed from your Revenue office for interest paid on non-secured loans used for qualifying purposes. |
| Interest paid on qualifying home loans taken out after 1 January 2004 and on or before 31 December 2012 will (subject to the exception below) qualify for tax relief up to the end of 2020 at the following general rates and thresholds. |
| First-Time Buyers– The tax relief on interest paid on qualifying home loans is 25% for years 1 and 2; 22.5% for years 3, 4 & 5 and 20% for years 6 and 7. The maximum interest on which tax relief is payable to the end of 2018 is: €15,000 for individuals who are married, in a civil partnership or widowed or surviving civil partner and €7,500 for individuals who are unmarried and not in a civil partnership. After year 7, the rates and thresholds for relief are as for non-first time buyers. |
| Non-first time buyers – The tax relief on interest paid on qualifying home loans is 15%. The maximum interest on which tax relief is payable to the end of 2018: €4,500 for individuals who are married, in a civil partnership or widowed or surviving civil partner and €2,250 for individuals who are unmarried and not in a civil partnership. |
| Exception – However, notwithstanding the rates of tax relief mentioned above, for individuals who purchased their first principal private residence on or after 1 January 2004 and on or before 31 December 2008, the rate of tax relief on the interest paid on the loan to purchase that property will, for the tax years 2012 to 2020, be 30%. |
| Mortgage interest relief was due to be abolished entirely after 31 December 2017. It is now being extended for remaining recipients (owner-occupiers who took out qualifying mortgages between 2004 and 2012) on a tapered basis. 75% of the existing 2017 relief will be continued into 2018, 50% into 2019 and 25% into 2020. The relief will cease entirely from 2021. |
Living City Incentive (LCI)
The scheme applies to certain “special regeneration areas” in Dublin, Cork, Limerick, Galway, Waterford and Kilkenny.The relief applies to both residential and commercial refurbishment and conversion work. These works must be incurred in a 5 year period from 5 May 2015 for Owner-Occupier Residential Relief and Commercial Relief, and from January 1 2017 for Rented Residential Relief. The Living City Initiative is being extended until 31 December 2022.
Rental Income
From 1 January 2017, you can deduct 80% of the interest paid on your mortgage on a rental property. From January 2018, you will be able to deduct 85% of the interest paid on your mortgage on a rental property. From January 2019, you can deduct 100% of the interest paid on your mortgage on a rental property. For earlier years, the figure is 75% of the interest paid.
Rent tax credit ended on 31 December 2017. To claim this credit for the previous four years (2014 – 2017), you must have been renting on 7 December 2010. | ||||
| The exemption limits for persons aged 65 years and over remain unchanged: Personal Circumstances | 2019 € | 2020 € |
| Single or Widowed or a Surviving Civil Partner, 65 years of age & over | 18,000 | 18,000 |
| Married or in a Civil Partnership, 65 years of age & over | 36,000 | 36,000 |
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Chartered certified accountants
and registered auditors.
Morrissey McCrann & Co, 1 O’Curry Street, Limerick, Ireland. V94 HC80