By Una Beecher
With effect from 1 January 2014 the One Family Parent Tax Credit will be replaced by the Single Person Child Carer Credit. This credit will only be available to the principal carer.
Tax Relief at Source (TRS) for medical insurance relief will be restricted to the first €1,000 per adult and the first €500 per child insured.
Top slicing relief will no longer be available for ex-gratia payments from 1 January 2014.
DIRT rate will increase from 33% to 41% from 1 January 2014.
Tax relief for interest on a loan to acquire an interest in a partnership will no longer be available for new loans taken out from 15 October 2013. Relief in respect of loans taken out before this date will be withdrawn on a phased basis over four years.
Relief is still available for pension contributions at the marginal rate.
The Standard Fund Threshold will be reduced from €2.3m to €2m from 1 January 2014.
0.6% levy on pension fund assets will increase to 0.75% for the year 2014. This levy will reduce to 0.15% for the year 2015.
No change to the corporation tax rate of 12.5%.
R&D Tax Credit
The first €300k of expenditure (previously €200k) will qualify without reference to the 2003 base year.
The limits on the amount of expenditure on R&D outsourced to third parties which can qualify for the relief is to be increased from 10% to 15%.
The reduced VAT rate of 9% for tourism related services is being retained.
The threshold for the cash receipts basis is to be increased from €1.25m to €2m with effect from 1 May 2014.
Increase in farmer's flat rate addition from 4.8% to 5% from 1 January 2014.
Capital Gains Tax