FAQ

Ernst and Young tax experts answer frequently asked Budget questions on this page.

Q. I have a holiday home in Spain - will I be subject to the new €200 charge on non-principal private residences?

A. As this payment is to be made to local authorities, overseas properties will be outside the net of this charge.

Q. I am on the minimum wage and am currently outside the tax net. Will I be subject to the new income levy?

A. Yes, the income levy is on gross income (i.e. before deductions for capital allowances or pension contributions). However, the levy will not apply to social welfare payments, contributory and non-contributory pensions. You will be subject to a 1% levy.

Q. I bought my first house last year. Will I qualify for the new higher 25% rate of mortgage relief?

A. Yes, any first time buyers who have bought a house in the last four years will qualify for the new higher rates - 25% in years one and two and 22.5% in years three, four and five.

Q. I am paying tax at the 41% rate. What about my medical expenses for 2008, what rate can I get relief on this?

A. For medical expenses incurred in 2008, you can claim tax relief at your marginal rate, in your case 41%. For medical expenses incurred in 2009, tax relief will be claimed at 20%. Nursing home expenses will continue to be granted at the marginal rate until 1 January 2010.