The Minister for Finance Michael McGrath TD and the Minister for Public Expenditure and Reform Paschal Donohoe TD delivered Budget 2024 on 10th October 2023. The key changes announced in Budget 2024 are:
Income Tax
- An Increase of €2k to the Standard Rate Income Tax Band.
- Increases to personal tax credits.
- Reduction in USC bands to ensure that full time minimum wage earners remain outside the scope of USC.
- All PRSI rates will increase by.1% from 1 Oct 2024.
Enterprise/SMEs
- Angel Investor Capital Gains Tax relief introduced.
- Amendments to Capital Gains Tax retirement relief.
- The maximum ceiling for EII investment has been increased.
- Increases in R&D Tax Credits.
- Accelerated Capital Allowances for Energy efficient equipment extended to 31st Dec 2025.
Agri-Business
- Consanguinity relief – extended to 2028.
- Accelerated cap allowances extended to 31 Dec 2026.
- VAT Flat rate addition 5% to 4.8% from 1 Jan 2024.
- Young trained farmer reliefs aggregation increased.
Property
- Help to buy Scheme extended to 31 Dec 2025.
- Rent tax credit increased for 2024 and 2025. The relief has been extended to include parents who pay for students’ rental accommodation for rent a room for 2022 and 2023.
- New temporary tax relief at standard rate introduced for Landlords.
- Vacant Homes tax to be increased to 5 times the property’s existing base LPT with effect from 1 November 2023.
- A temporary one-year Mortgage interest tax relief tax credit for taxpayers with outstanding mortgages on Principal Private Residences of between €80k and €500k.
VAT
- VAT Registration thresholds to increase from 1 Jan 2024 to €40k for Services and €80k for Goods.
- 0% VAT rate to supply and installation of solar panels in schools wef 1 Jan 2024.
- 0% VAT rate to audiobooks and eBooks.
- 9% Vat on gas and electricity to be extended to 31 Oct 2024.
