Beware the taxman’s swoop

13 January 2013

Households are facing the sixth austerity budget since the economy collapsed in 2008, with the government planning to announce €3.5 billion of tax hikes and spending cuts on December 5.

A new property tax based on the market value of your home will account for €400m-€500m of the planned tax increases of €1.25 billion.

Tax relief on pension contributions is likely to be reduced, especially for high earners.

Joan Burton, the minister for social protection, proposed reducing an existing cap on the relief last week, so that nobody could retire on more than €60,000 a year.

She favours keeping top-rate relief, though, for those whose pensions will be less.