The below are the key changes that are likely to be of interest to our clients.
An increase in tax credits and standard rate cut-off points will reduce the overall annual tax liability for most.
Tax credit increases and standard cut-off increases
Pre-letting expenses of vacant residential
The deduction for pre-letting expenses of a revenue
nature incurred on a property that has been vacant
for a period of 12 months or more has been
extended by three years.
The expenditure must be
incurred within the 12-month period before it is let
as a rented residential premises.
A cap on allowable expenses of €5,000 per property
will apply, and the relief will be subject to clawback
if the property is withdrawn from the rental market
within four years. The relief will be available for
qualifying expenses incurred up to the end of 2024.
Deduction in respect of certain expenses of
The current tax arrangements for working from
home will be enhanced and formalised from 2022
onwards. An Income Tax deduction amounting to
30% of the cost of vouched expenses for electricity,
heating and internet services for those days spent
working from home can be claimed by remote
Taxation of international flight crew
Currently, all individuals who are employed aboard
an aircraft which operates in international traffic are
subject to Income Tax in Ireland where the
aircraft is operated by an enterprise which is
managed in the State. The Finance Act will amend
this position to exclude non-resident flight crew,
subject to certain conditions.
Contact us if you have any queries on how Budget 2022 impacts you.