Action to take before the Budget to avoid tax increases

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cork

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Taxing a car from Jan'13

If you motor tax is out on the end on December'12 - tax you vehicle from 1st December to close of business on budget day to avoid any possible tax increases.
 
Hi cork

Good thinking! I have renamed the thread in case there are other ideas.


Realise Capital Gains

The rate of CGT may be increased in the budget. If you are planning to sell shares anyway, it would probably be better to sell them before the budget.

Is it possible that they might interfere with losses forward? Would it be worth realising gains and using them against realised losses? The transaction costs probably don't justify this but, again, if you are planning such a transaction in the near future, do so before the budget.
 
Deposit Interest Upfront.

Now that Nationwide uk have reduced interest rate on easy access to 2.50%

I'm thinking of opening an KBC Interest up front account, rate 3.20% to avoid any increase in dirt tax.

Are there any pitfalls to look out for in doing this.
 
pudds said:
Now that Nationwide uk have reduced interest rate on easy access to 2.50%

I'm thinking of opening an KBC Interest up front account, rate 3.20% to avoid any increase in dirt tax.

Are there any pitfalls to look out for in doing this.
Click to expand...

I think in this case, its the DIRT rate applicable when the interest is paid, so looks ok.
 
cork said:
Taxing a car from Jan'13

If you motor tax is out on the end on December'12 - tax you vehicle from 1st December to close of business on budget day to avoid any possible tax increases.
Click to expand...


It's not possible if you have already paid the motor tax until the end of December already.
 
You will get notification in early December to renew during December, and you should renew immediately. I doubt if they will pursue you for any increase in the budget.
 
pudds said:
Now that Nationwide uk have reduced interest rate on easy access to 2.50%

I'm thinking of opening an KBC Interest up front account, rate 3.20% to avoid any increase in dirt tax.

Are there any pitfalls to look out for in doing this.
Click to expand...

How much might you save?

deposit|€100k
Interest rate|3%
Interest paid half yearly|€1,500
Increase in Dirt by 5%|€75

It is probably not worth taking any action unless

  • you have a very large sum on deposit and
  • interest is paid yearly
I would imagine that interest is paid monthly on most large deposits.



If you have a substantial amount of interest due, you should probably close your bank account before the budget and the interest will be paid to you then. You can open it again the following day. (Assuming there are no penalties for early encashment)
 
Brendan Burgess said:
You will get notification in early December to renew during December, and you should renew immediately. I doubt if they will pursue you for any increase in the budget.
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Those letters are held back so budget increases can be applied.
 
Apologies I misunderstood. I was told that you can renew online using last year pin as its the same one you get every year (have not tried it myself), so yes that might work. Once car tax doesn't decrease :D.
 
The pin changes at each renewal and only be used once.

The new pin won't issue until after the budget.

Tax discs for January 2013 cannot be issued until the notice is issued from Shannon.
 
I have never seen the situation where any of the Motor Tax increases took effect from Jan of the following year since the Budgets started to be announced in December. The Motor tax increases have generally taken effect not earlier than 1st March. I do not see this be any different on this occasion.
 
Last year - increses from Jan'12 were introduced the day after the budget.
 
Have read this and am confused, If I go to my motor tax office before the budget, in December with a car whose tax is expiring Dec 31 2012 can I or can I not tax the car at todays rates..??
 
No. You have to wait for the renewal document in the post which will not be sent until after the budget.
 
Decided to check with local motor tax office, my car tax expires end of December, I'm now just back from successfully taxing my car until Dec 2013 beating the expected Budget motor tax increases, this is definitely worth doing and is a real cash saving .
I don't know how long you have but this afternoon and tomorrow pre budget may allow you time to organise, grab it while you can if your tax expires Dec 12.
 
I've just paid car tax today for my car - tax is up in Jan 13. If you use the PIN retrevial on MotorTax.ie you will get another PIN vai email. Sent email at 9am this morning and got a mail a few minutes later. Paid online so now just to wait for the disc in the post.
 
cork said:
Taxing a car from Jan'13

If you motor tax is out on the end on December'12 - tax you vehicle from 1st December to close of business on budget day to avoid any possible tax increases.
Click to expand...

My motor tax expiring 31st December, how do I physically renew it early? I havent received a renewal notice!!!!!
 
bazermc said:
My motor tax expiring 31st December, how do I physically renew it early? I havent received a renewal notice!!!!!
Click to expand...

Go online and request a PIN by email. Log in and renew for 2013 at 2012 rates.

My wife renewed annual motor tax for 2013 at 00.01 am Saturday December 1st 2012.
 
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