The major tax measures, which will take effect on January 1 2005, are as follows:

Personal Taxation Measures

• Full year €682 million personal tax package.
• Personal credits increased by €60 single/€120 married to €1,580 single/€3,160 married.
• Employee (PAYE) tax credit increased by €230 to €1,270 per annum.
• Standard Rate Bands increased by up to 5% to:
  • €29,400 Single
  • €38,400 Married One Income
  • €58,800 Married Two Incomes, and
  • €33,400 Lone Parent/Widowed Parent
    

• Age exemption limits (single/married) increased from €15,500/€31,000 to €16,500/
  €33,000.
• Health Levy Threshold increased from €356 per week to €400 per week.
  

Other Income Tax

• Comprehensive review of all tax reliefs and exemptions.
• Extension of special tax exemption for unemployment benefit for systematic short-term workers for a further two years to 31 December 2006.
• For those aged under 55, the maximum level of rent paid for private rented accommodation, on which tax relief at the standard rate can be claimed, increased by €230 single/€460 married and widowed to €1,500/€3,000 per annum. For those aged 55 and over the respective amounts are being increased to €3,000/€6,000.
• Increase in maximum amount of qualifying fees allowable under tax relief scheme for 3rd level fees from €3,175 per annum to €5,000 starting with the academic year 2005/2006.
• Increase in small Benefits-in-Kind (BIK) exemption threshold from €100 to €250.
  

Stamp Duty

• Major relieving measures in the stamp duty charge for first-time buyers who are owner-occupiers of second-hand residential property.
• Stamp Duty relief from the double charge arising from switching financial cards such as credit, charge, ATM and laser cards.
• Halving of rate of companies capital duty – a duty charged on the issuing of share capital
  – from 1.0% to 0.5%.
  

Indirect Taxation

• No increase in Excise Duties on alcohol, petrol diesel or tobacco.
• Extension of scheme providing purchasers of “hybrid” vehicles with a 50% refund on VRT for a further two years until December 31 2006.
• Reduction of 50% of the standard rate of Alcohol Products Tax applying to beers produced in microbreweries from 1 January 2005.
• As an environmental measure, an excise differential for sulphur free petrol along the lines of that introduced for sulphur free diesel in Budget 2002 will be introduced during 2005.