SFA pre-Budget submission 2020

Overview

There is a clear path open to the Government that would de-risk our economy from over-reliance on foreign direct investment (FDI) and seize an important opportunity to future-proof our economic model as we prepare for an EU without the UK. That path is to focus on small business and support this important sector to fulfil its potential.

This would involve creating a whole-of-government Small Business Strategy, with a roadmap towards significant policy goals (increased productivity, export diversification etc.). Immediate changes would support the achievement of these goals, including certainty on costs for small businesses in Budget 2020, reducing capital gains tax, increasing the self-employed tax credit and greater funding for training and upskilling.
Supporting small businesses would mitigate some of Ireland’s current vulnerabilities and create a true entrepreneurial culture with benefits for entrepreneurs, employees and communities.

Small Firms Association priorities for Budget 2020:
  • Protect competitiveness by ensuring that Budget 2020 provides certainty for small business;
  • Reduce the headline rate of CGT to 20% for all;
  • Increase the lifetime limit for CGT Entrepreneur Relief to €15 million;
  • Remove the €3 million cap on value which can qualify for Retirement Relief on the transfer of shares for those aged 66 years of age and older;
  • Increase the Earned Income Tax Credit to €1,650 to equal the PAYE tax credit; and
  • Use funding from increases in the National Training Fund levy for the Skillnet Programme.

The full submission is available below.
Close