limits announced in Budget

Itchy said:
First year cost €5.5m and full year cost €11.5m. Hardly a subsidy to the rich!
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In the first year I can see only the loss of DIRT as the cost. So in 2027 that 5.5m represents €16.5m of deposit interest moving to the Simonsaver. Let's say €1bn of deposits. Let's say average saving is €500 per month for 3 months. That's about 700,000 new accounts. Does that sound reasonable?
 
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Duddaa said:
Will the 12k per year be based on when you put money in, the calendar year, tax year or 1st July?
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Doesn't the €1K p.m. limit make this moot?

Or did I mishear this...? Ok, looks like I did and there's only the €12K p.a. limit on contributions?
 
Brendan Burgess said:
1 July start date is a bit disappointing
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Well, you could take the view that they may be afraid of potentially frothy markets. This could be a Harris legacy issue. Better that you "allow" 10 months for a potential market correction than have savers sums potentially suffer a deficit from the get-go. You can't, of course , time markets.....but it doesn't stop people trying.
 
It'd be good to have the option for a joint account - I know the announcement pointed to one account per person, but I know my wife won't have any interest in setting up or maintaining one of these accounts, so it'll fall to me. If a married couple wanted to have one joint account with double the thresholds, that should be available.
 
Is the 1% wealth tax applicable to the entire investment once it goes over 50k, or just the amount above it?
 
Duke of Marmalade said:
In the first year I can see only the loss of DIRT as the cost. So in 2027 that 5.5m represents €16.5m of deposit interest moving to the Simonsaver. Let's say €1bn of deposits. Let's say average saving is €500 per month for 3 months. That's about 700,000 new accounts. Does that sound reasnable?
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Seems a bit high in terms of accounts for year one. They might be assuming the money would if invested otherwise would be paying fund (or CGT) tax. Maybe 100,000 open accounts with an average of 6000 per person per year, working on a 6% annual profit rather than much lower deposit income.
 
The “one account per person” structure probably has several administrative advantages:
Each investor has a clear individual tax record.
The €50,000 threshold cannot be transferred between spouses.
Providers can identify the beneficial owner of investments more easily.
It prevents complications on divorce, death or separation.
It follows the principle that the tax benefit belongs to the individual rather than the household.
 
Are children going to be included?

A family of two adults and two children would have a tax-free limit of E200k, which isn't bad. Would be very good for providing for third-level education.
 
Setforlife said:
Hard to know why they would need so much time to setup an account that can’t have any tax calculations for at least 3- 4 full years after setup.

Oversell though pleasantly surprised the higher tax free threshold is more important that the lower than expected yearly limit. Great for ongoing savings.

Doesn’t appear at all suited to the initially stated claim of getting the billions off deposit but I guess look on the bright side.
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I guarantee you somebody will hit the taxable threshold in the first year. they need to be ready for this.

Fair play to whomever hits the taxable threshold though. they should nearly be exempt
 
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