With the December 5th Budget 2013 looming it is time to start thinkingabout tax planning in advance of this date. Here are a few ideas:
1. PensionContributions: at present taxrelief is available at your marginal rate on contributions to personal pension schemes subject to an income cap of €115,000 and rates ranging from 15% to 40% of earnings depending on age. With the strong possibility of a reduction in the tax relief (either by lowering the cap or the percentages) after budget day 2013 , you may consider advancing the payment of any contribution to before 5th December – in particular pension contributions on which you would currently get tax relief at 41% .
2. Capital GainsTax: an increase in the rateof capital gains tax is expected. In the event that you are considering selling a chargeable asset, consider accelerating disposal to before 5th December.
3. CapitalAcquisitions Tax – there may be increase in the rate of Capital Acquisition Taxwhich is currently 30% and it has been suggested that this my increase to between 35% - 40% . In addition, there may be a significant lowering of the amount a beneficiary can receive free of capital acquisitions tax. If you are considering making gifts, for example to children, it may be tax advantageous to do so before budget 2013 is announced.
Contact Imelda Prendergast - OSK Contracting and OSK Small Business Support for further information. OSK will publish budget highlights a and budget summary video on Thursday December 6th - email OSK if you wish to receive OSK 2013 Budget highlights.
A video message from Tadgh O'Sullivan, Director.
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