2021 Budget Update

Tue Oct 13 2020

Details of the 2021 Budget details were announced today (13th October 2020) in Dail Eireann by the Minister for Finance, Paschal Donohoe. To help Brokers understand some of the likely implications for clients, the summary below outlines the main changes within the 2021 Budget.
Key points from the Budget 2021 speech:
  • No change in income tax rates or bands
  • Two income tax credits have been increased:
    • The earned income tax credit provided to the self employed and proprietary directors increases by €150 in 2021 to €1,650
    • The dependent relative tax credit of €70 increases by €175 in 2021 to €245
  • Employees working at home may be able to claim some expenses for income tax purposes
  • No change in pension tax relief, the €115k NRE limit, or the €2m Standard Fund Threshold limit
  • No change in the 1% life assurance premium levy
  • No change in DIRT or life assurance exit tax rates
  • No change in CGT or CAT rates. The CAT Thresholds remains as before
  • No change in PRSI rates
  • State Pension
  • The State Pension Age remains at 66 for those reaching that age in 2021
  • No increase in the State Pension, but the living alone allowance is increased by €5pw to €19 pw
  • The Christmas bonus will be paid in early December 2020 at 100% of the weekly amount
  • The child supplement to certain Social Welfare benefits, such as Jobseekers and Illness, will be increased in 2021 by €5pw for children over 12 and by €2pw for a child under 12
  • The enhanced Help to Buy Scheme will be extended to end of 2021, providing a tax refund of up to €30,000 in certain circumstances


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