Sunday Independent (Ireland) - Business & Appointments - - FRONT PAGE -

You’re an un­mar­ried cou­ple who are liv­ing to­gether. You both work for the same em­ployer. You both earn €40,000 each — or €80,000 in to­tal. You are pay­ing €1,600 a month in rent and so are ea­ger to get on the prop­erty lad­der.

You will take home €62,846 af­ter tax next year — €402 less than in 2006, ac­cord­ing to Ali­son Mchugh, di­rec­tor of pri­vate clients with Deloitte. “This cou­ple’s fall in in­come is mainly due to the avail­abil­ity of the rent tax credit in 2006,” said Mchugh. “The rent credit will be fully abol­ished from 2018.” The rent tax credit, which will end this year, is a tax credit which can be claimed by some of those rent­ing pri­vate ac­com­mo­da­tion. On the plus side, the Help-to-buy scheme, which gives first-time buy­ers up to €20,000 to­wards the cost of buy­ing a new home, is be­ing re­tained. But, the cuts to — and phas­ing out of — mort­gage in­ter­est re­lief will be a fi­nan­cial dis­ad­van­tage should you man­age to buy a home. You’re a wealthy man in his early 50s with as­sets worth €50m. Those as­sets in­clude about €40m worth of Ir­ish prop­erty, €5m worth of Ir­ish shares and €5m worth of other sav­ings and in­vest­ments. You are also earn­ing a salary of €2m a year as chief ex­ec­u­tive of a ma­jor Ir­ish firm. On top of this, you are earn­ing about €500,000 in div­i­dends and rental in­come. You are mar­ried and your spouse isn’t work­ing. You and your wife have three adult chil­dren who

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