The Small Firms Association is calling for a reduction in capital gains tax and for the Government to impose no extra costs on small businesses in Budget 2019.
The SFA’s Budget 2019 submission has been launched and in it has made a number of recommendations. The submission proposes that Budget 2019 does not impose additional costs on small businesses, should reduce the headline rate of Capital Gains Tax (CGT) to 20 per cent for all and increase the Earned Income Tax Credit to €1,650 so as to equal the PAYE tax credit.
The submission also calls for more measures to boost the viability of residential property construction and for the lifetime limit for CGT Entrepreneur Relief to be increased to €15 million. The lifetime limit on the gains that you can claim relief on currently stands at €1m. This relief allows businesses to pay just 10 per cent on gains as oppose to the normal rate of 33 per cent.
Launching the Small Firms Association’s Budget 2019 submission, Sven Spollen-Behrens, SFA Director, said: “Budget 2019 must focus on the small businesses in Ireland and support this important sector to fulfil its potential. In doing so, the Government would reduce the risk on our economy from over reliance on foreign direct investment while seizing an important opportunity to future proof our economic model.
“The SFA is calling for a whole-of-government national Small Business Strategy, with a roadmap towards significant policy goals: increased productivity, export diversification et cetera. Immediate changes in Budget 2019 would support the achievement of these goals.”
Ireland’s current rate of Capital Gains Tax is one of the highest in the developed world. “Supporting small businesses would mitigate some of Ireland’s current vulnerabilities and create a true entrepreneurial culture with benefits for entrepreneurs, employees and communities,” Spollen-Behrens concluded.