October’s Budget highlighted a number of areas that may have gone unnoticed by some of our readers.
- Landlords will be to claim relief on 80% (2016 75%) of the interest paid on a mortgage for an investment property in 2017. This will rise to 100% by 2021.
- DIRT will reduce by 2% each year between now and 2020 and will be 39% next year. However, if you have a Life Assurance Investment, the exit tax will remain at 41%.
- You can now earn an extra €2,000 under the Rent-a-Room scheme which will be a welcome development for property owners, who rely on this tax free income to supplement their day-to-day needs. This may also result in encouraging more property owners to rent rooms in their homes.
- The Inheritance Tax Threshold from Parent to Child has increased by €30,000 to €310,000 for 2017. This is a welcome move in the right direction but is a long way off the pre-boom Threshold of €500,000 which needs to be restored as soon as possible.