Budget 2006 in brief

Income tax

The standard rate income tax band rises by €2,600 to €32,000. The band for a one-income married couple goes to €41,000. Credits for widowed people and dependants also rise. Annual employee tax credit up €220 per year. Personal tax credits rise €50 for single people while the tax credit for married couples rises by €100.

Pensions

Weekly contributory old age pension up €14 to €193.30. Weekly non-contributory pension up €16 to maximum of €182. First €100 earned in a week by those working after retirement age to be disregarded for means test on non-contributory pension.

Excise duties

No change in the "old reliable" excise duties on alcohol, tobacco and on motor fuels. No change to VAT rates.

The excise rate on kerosene and LPG home heating oil halved from midnight last night.

Betting tax reduced by half to 1 per cent from next July.

Education

Strategic innovation fund of €300 million over five years to encourage "fourth-level" PhD research. An additional allocation of €900 million over five years for investment in third-level buildings and other facilities will be made up of €630 million in exchequer funding and €270 from public-private partnerships.

Farming

Stamp duty exemption for young trained farmers continued for three years while exemptions from income from farm leasings were also extended. Farmers encouraged to avail of €20 million in excise relief on biofuel. This relief will rise to €35 million in 2007 and to €50 million in each of the following three years.

Tax reliefs

To eliminate the phenomenon of "tax-free millionaires", only 50 per cent of tax relief on certain schemes will be available from 2007 to people earning more than €250,000 per year. Cap of €250,000 on the artists' exemption from 2007. Most property schemes to end in 2008, but nursing home, hospital and childcare schemes continue.