Dáil Éireann Debate, Wednesday - 12 December 2012
49. Deputy Pearse Doherty asked the Minister for Finance the additional revenue expected to be raised in 2013 and in 2014 for all those tax measures on wealth contained in budget 2013 and if he will detail each of these measures with their individual projected yields for 2013 and 2014; and if he will make a statement on the matter. [55792/12]
View answerThere are no specific tax measures relating to wealth. However I assume the Deputy is referring to Budget 2013 measures that impact on assets and investment income rather than earned income. Details of such measures are set out below.
Local Property Tax
The local property tax on residential properties will come into effect as of 1 July 2013. There will be a system of market value taxable bands for properties valued up to €1m. The tax rate will be 0.18% up to €1m. The tax liability is calculated by applying the tax rate to the mid-point of the band. For residential properties valued over €1m banding will not be applicable. The rate will be 0.18% of actual market value for the first €1m with a rate of 0.25% applying to any excess value over €1m. A half-year of LPT will be payable in 2013 with a full year payable in subsequent years. The revenue expected to be raised in 2013 is €250m. The revenue expected to be raised in 2014 is €500m. However the Household charge will be abolished in 2013 and the Non Principal Private Residence charge (NPPR) will be abolished in 2014. Arrears of both will continue to be collected.
Deposit Interest Retention Tax and Exit Taxes on Life Assurance Policies and Investment Funds
The rate of retention tax that applies to deposit interest, together with the rates of exit tax that apply to life assurance policies and investment funds, are being increased by 3 percentage points and will now be 33% for payments made annually or more frequently and 36% for payments made less frequently than annually. The increased rates will apply to payments, including deemed payments, made on or after 1 January 2013. The revenue expected to be raised from the increase to DIRT is €47m for 2013 and is €60m for 2014. The revenue expected to be raised from the increase on exit taxes is €3m for 2013 and €4m for 2014.
Capital Gains Tax
The current rate of 30% is being increased to 33%. This increase applies in respect of disposals made after 5 December 2012. The yield is estimated at €47m in 2013 and €48m in 2014.
Capital Acquisitions Tax
The current rate of 30% is being increased to 33%. This increase applies in respect of gifts or inheritances taken after 5 December 2012. The measure is expected to yield €18m in 2013 and €27m in 2014. The current group tax free thresholds are being reduced by 10%. This reduction applies in respect of gifts or inheritances taken after 5 December 2012. This is expected to yield €10m in 2013 and €15m in 2014.
