BRENDAN and Jill are a couple in their fifties. Brendan is a director of his own company and is pleased the inheritance tax on passing the business to his children has been reduced.
He is disappointed that this year he will receive only £8,000 relief on his planned £10,000 Section 35 film investment, as opposed to full relief last year. He may make a Business Expansion Scheme investment as the scheme has been extended for three years. He also gets tax relief on a loan of £15,000 which he invested in his company.
He has two sons, both in third level education and regrets the ending of tax relief on covenants to children. The couple have a £50,000 mortgage on their £165,000 house, which last year was valued at £150,000 so they are facing an increase in their residential property tax despite the automatic increase in the threshold.
Brendan's gross income, including BIK on his £25,000 company car is £65,800. His net cash income after the budget is £36,570 compared to £38,314 last year, a fall of £1,744. The reduction is mainly due to the ending of relief on covenants and the smaller Section 35 relief. His PRSI payments have risen from £2,439 a year to £2,450.