Tax Thresholds and Allowances Can Be Escalated - Ireland

Plan Settings

The Default Tax Table Assumption is a preference, which is set to apply an across-the-board annual escalation to the following assumptions relating to taxes and contribution allowances (with the default rate of escalation being set at 2% per annum):

- Tax brackets (20% & 40% earnings thresholds)
- Standard Tax Credits - all
- Child Benefit allowance
- Age 65+ Exemption threshold
- Personal capital gains allowance
- ARF Minimum Secured Income requirement
- PRSI & USC standard rate income thresholds
- PRSI & USC exemption thresholds
- USC 'reduced rate' thresholds
- USC self-employed surcharge threshold

There are separate settings to escalate:

- CAT thresholds

- Standard Fund Threshold


 

Tip: We code for what we know. As a rule, Voyant software is coded to account for legislated rules and only escalates tax-related assumptions once we move beyond the known. For example, the SFT is set to escalate by €200,000 pa between 2026 and 2029 until it reaches €2.8million. These values are coded and the Standard Fund Threshold Escalation Rate is only applied after 2029.

Tax related assumptions that are not escalated

The software does not escalate:

- ARF minimum fund threshold - €63,500
- Money purchase contribution income limit - €115,000

Set defaults for your subscription

The subscription owner can set default escalation rates by editing Subscription Preferences. Instructions can be found here: How to set custom preferences (plan settings) for your subscription.

Options for Rebranding / White Labelling

For firms who use Voyant’s optional white labelling/rebranding service, the option is available to escalate these tax related assumptions independently of one another, using different rates or possibly to exclude some from escalation.