Individuals
Finance Act 2009
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The Act introduces legislation which gives effect to the measures introduced in April’s Budget which results in substantial tax increases and a broadening of the tax base achieved predominantly by an increase in the income levy, restriction of interest relief in certain circumstances and termination of certain capital allowance schemes. The Act does not introduce any significant additional measures which will impact on the income tax position of individuals. It does, however, clarify a number of issues arising from the measures introduced in the Budget which is to be welcomed. Overall, the increases announced in the Finance Act 2009 together with the increases announced in Finance (No. 2) Act 2008, many of which only became effective from the beginning of the current tax year, represent a significant increase in effective tax rates for individuals, with greater proportionate increases for those in the middle and higher income categories. In broad terms the top rates of tax (including income levy, PRSI & health levy) applicable to individuals can be summarised as follows:
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