Get ready to navigate the fiscal landscape with our concise summary of the key Budget 2024 points. From personal and business tax changes to sustainability and housing measures, stay informed for the year ahead. Remember, always consult your tax advisor for strategic planning.
These are the main points of Budget ’24. Remember to talk to your accountant/tax advisor before making any tax decisions.
Personal Tax
- Main tax credits increased by €100 to €1,875.
- Standard Rate Cut Off Point for individuals increased by €2,000 to €42,000.
- USC 2% rate band ceiling increased by €2,840.
- USC rate of 4.5% also reduced to 4%, PRSI increases from October 2024.
- Ceiling for 2% USC increased to €25,760.
- Higher rate of USC on earnings up to €70,044 reduced by .5% to 4%.
- Rent tax credit increased to €750 for 2024.
- Temporary one-year mortgage interest tax relief.
- Help to Buy extended to 2025.
- Minimum wage increased to €12.70 per hour from January ’24.
Business Tax
- R & D tax credit increase for 2024 expenditure from 25% to 30%.
- Year 1 payment threshold for R & D increased to from 25k to €50k.
- Minimum effective corporation tax rate for large corporate groups of 15%.
- Reduced Capital Gains Tax rate of 16% for Angel Investors in innovative SMEs, on gains of up to €3m.
- EII investor relief limit increased to €500k from €250k with standardised 4 year holding period.
- KEEP (Key employee engagement Programme) scheme extended to 2025.
- VAT thresholds for SMEs to €40,000 for services and €80,000 for goods businesses.
- New measures to ease tax administration burden. • €250m for targeted refunds to rates paying businesses.
Sustainability & Housing
- Rented Residential Relief for landlords where €3,000 for 2024, €4,000 for 2025 and €5,000 for 2026 and 2027, will be disregarded at the standard rate of 20%.
- Range of sustainability measures including extension of accelerated capital allowances on energy efficient equipment to 2025.
- Vacant Homes Tax on residential properties increased to a rate equal to 5 times existing LPT rate from November 2023.
Note: Now might be a good time to talk to your accountant or tax advisor about tax planning for next year.
