Budget 2024 - Highlights
BUSINESS TAXATIONCORPORATION TAX RATENo changes to Corporation Tax announced. Ministerfor Finance will be publishing legislation toimplement the 15% minimum effective tax rate forlarge companies as provided for under the OECD
Pillar Two agreement.

CAPITAL GAINS TAX
A new relief is being introduced to encourageangel investment in innovative start ups. The
relief will be available to an individual who
invests in an innovative start-up SME for a periodof 3 years. The investment must be in the form offully paid up ordinary share capital of at least€10,000 and constituting between 5% and 49%of the ordinary issued share capital of thecompany. Qualifying investors may avail of aneffective reduced rate of CGT of 16% or 18% ifthrough a partnership, on a gain of up to twice
the value of their initial investment. There is a
lifetime limit of € 3million on gains to which thereduced rate of CGT will apply.
From 1 January 2025 Retirement Relief is being
extended to bring the upper age limit from 65 to70. The reduced relief which was available on
disposals from age 66 onwards will now apply
from age 70. From 1 January 2025 there will be anew limit of €10 million on the relief available on
disposals to a child up to the age of 70.

BUSINESS SUPPORTS
The Research and Development (R&D) tax credit
is being increased from 25% to 30% in respect of2024 expenditure, for which claims will be filed
in 2025. The first year R& D payment thresholdallows for a claim up to the threshold amount tobe paid in full in year 1, rather than over threeyears. The current R&D threshold of €25,000 isbeing increased to €50,000.
The Film Corporation Tax Credit is beingenhanced whereby the maximum qualifying
expenditure in respect of certain audiovisual
productions for which the 32% credit can begranted (currently capped at €70 million) is being
increased to €125 million.
The accelerated capital allowances scheme forEnergy Efficient Equipment is being extended for
two years to 31 December 2026.

From 1 January 2024, the minimum holding period to
obtain relief for Employment Investment Incentive(EII) is being standardised to 4 years for all
investments and the limit on the amount that aninvestor can claim relief on for such in investmentsis
being increased to €500,000.
The temporary relief from benefit in kind (BIK) of€10,000 applied to the Original Market Value of avehicle (including vans) for vehicles in category A-D
and the amendment to the lower limit of the highest
mileage band is being extended to 31 December
2024.
The tapering mechanism applied to BIK relief forelectric vehicles is being enhanced by extending thecurrent Original Market Value deduction of €35,000
until the end of 2025 followed by a reduction to€20,000 in 2026 and €10,000 in 2027.

PROPERTY / BUILDING
A new tax relief for landlords is being introduced
from 1 January 2024. It will provide relief at thestandard rate of income tax. Relief will be as follows€3,000 in 2024, €4,000 in 2025 and €5000 in 2026
and 2027. A full clawback of the benefit of the relief
will apply in the event that the landlord removes any
property (held in the first year the benefit is claimed)from the rental market within 4 years.
Vacant Homes Tax is being increased from three tofive times a property’s existing base Local Property
Tax liability, effective from 1 November 2023.
The Residential Zoned Land Tax (RZLT) liability dateis being extended by one year to allow for theplanned 2024 review of maps to take place.
The concrete product levy will no longer apply topouring concrete used in the manufacture of precast
concrete products. A refund scheme will apply for
those who paid the levy on such concrete between 1
September 2023 and 31 December 2023.

MINIMUM WAGE INCREASE
From 1 January 2024 the national minimum wagewill increase by €1.40 per hour to €12.70 per hour.

PERSONAL TAX
INCOME TAXRENTAL TAX CREDIT

There were no changes to the Income Taxrates. The exemption limits, tax credits andstandard rate bands applicable for the tax year
2024 are set out in detail under the PersonalTax Facts section.
Any changes that have been made to the rates
and bands for USC are set out in detail under
the Personal Tax Facts section.

The tax credit is being increased to €750 for
2024.
This credit will be extended to parents who pay
for their student children’s rental
accommodation in respect of tenancies in ‘Rent
a Room or ‘digs’ accommodation. This will bebackdated to allow for claims to be made forthe 2022 and 2023 tax years.
MORTGAGE INTEREST RELIEFTAX CREDITS/ BANDSThe Standard Rate Band is being increased by€2,000 per person.
The Minister has increased Personal Tax credits,
Employee Tax Credit and the Earned Income
Credit by €100.
The Home Carer Tax Credit and the Single
Person Child Carer credit are increasing by €100
The Incapacitated Child Tax Credit in increasingby €200.

A one year Mortgage Interest Relief for homeowners with an outstanding balance on theirprimary dwelling house of between €80,000
and €500,000 as of 31 December 2022 isbeing introduced.
Relief will be available for qualifying
homeowners in respect of increased interest
paid on their mortgage in the calendar year
2023 as compared with the amount paid in
2022, at the standard rate of income tax. The
relief will be capped at €1,250 per property.

HELP TO BUY SCHEME (HTB)
The scheme is being continued at the current
rates until the end of 2025.
The scheme is being amended to ensure thatapplicants of the local authority affordable
purchase scheme can avail of the Help to Buy
Scheme. This change comes into effect from 11
October 2023 and will run until the end of 2025.

CAPITAL ACQUISITIONS TAX
Amendments are to be proposed to ensurethat foster children can avail of the Group B
Capital Acquisitions Tax threshold inrecognition of their relationship to their foster
parents.

FARMERS TAX
The farmers flat rate VAT scheme is being
reduced from 5.0% to 4.8% with effect from 1
January 2024.
Consanguinity relief (Stamp Duty) is beingextended to 31 December 2028. This relief
reduces the rate of stamp duty applicable tothe transfer of farmland between family
members from 7.5% to 1%
Stock relief applicable to young trained
farmers and registered farm partnerships is toincrease from €15,000 to €20,000 in the caseof qualifying periods commencing on or after
1 January 2024.

Stock relief for young trained farmers, relief forsuccession farm partnerships and young
trained farmers stamp duty relief are being
amended to increase the aggregate lifetime
amount of relief available to a person underthese reliefs, from €70,000 to €100,000 from1 January 2024.
Accelerated capital allowances of 50% perannum for eligible farm safety equipment isbeing extended to 31 December 2026.
Land leasing Income Tax relief will beamended so that it only becomes available
when land has been owned for seven years.

VAT
From 1 January 2024, the existing VAT
registration thresholds are being increased
from €37,500 for services and €75,000 for
goods to €40,000 for services and €80,000 forgoods.
The 9% VAT rate for electricity and gas has
been extended until 31 October 2024.

The VAT rate for audiobooks and e-books isbeing reduced from 9% to Zero from 1 January
2024.
The VAT rate for the supply and installation ofsolar panels installed in schools is being
reduced to zero from 1 January 2024.

EMPLOYMENT LAW & SOCIAL PROTECTIONSTATUTORY SICK LEAVE
Statutory sick leave will increase from 3 days
to 5 days from 1 January 2024.
PRSI
All PRSI contribution rates will be increased by
0.1% from 1 October 2024.
SOCIAL WELFARE PAYMENTS
The following changes to social welfare payments
were announced:All weekly social welfare payments willincrease by €12 with effect from January2024 with a proportionate increase forqualified adult dependants (i.e. State Pension
will increase from €265.30 to €277.30;
Maternity Benefit, Parent’s Benefit andPaternity Benefit will increase from €262 to€274; while Illness Benefit and Jobseeker’sBenefit will increase from €220 to €232 perweek).
The qualified child rate will increase by €4 to€46 for a child under 12 years and to €54 for achild over 12 years.
Parent’s Benefit will increase to 9 weeks from
August 2024.
Income threshold for the Working Family
Payment will increase by €54 per week fromJanuary 2024, regardless of family size.
The Carer’s Allowance income disregard will
increase to €450 for a single person and €900
for a couple.
The Domiciliary Care Allowance will increaseby €10 a month from January 2024.
The Foster Care rate increases by €75 for achild under 12 years of age and €73 forchildren over 12 increasing the weekly rate to€400 and €425 respectively.
From September 2024, Child Benefit will beextended to include children over the age of 18
who are in full time education.
PAY RELATED BENEFIT SCHEME
A Pay Related Benefit Scheme will be introducedin December 2024 for people who become
unemployed. This scheme will be subject toGovernment approval and pending final design.

PARENT’S LEAVE
Parent’s leave provides for 7 weeks leave withprotection of employment for a parent to be taken
within 2 years following the birth or adoption of thechild. Parent’s Benefit is paid by the DSP subject tothe employee satisfying the qualifying PRSI
contribution conditions.
Parent’s leave and Parent’s Benefit will be increased
to 9 weeks from August 2024
SOCIAL WELFARE (ONE-OFF PAYMENTS)
The following one-off payments will be made in
November 2023:€400 payment will be paid to those in receipt of
the Carer’s Supports Grant, Disability Allowance,
Invalidity Pension, Blind Pension and theWorking Family Payment.
€300 payment will be paid to those in receipt ofFuel Allowance€200 payment will be paid to those in receipt of
the Living Alone Allowance (i.e. pensioners andpeople with a disability getting the Living AloneIncrease).
€100 will be paid to those in receipt of theQualified Child payment.
Parents in receipt of Child Benefit will receive adouble payment (i.e. an additional €140 per child) inDecember 2023.
A Christmas bonus of 100% of an individual’s
weekly payment will also be paid in December 2023
to recipients of long-term social welfare payments.
A cost-of-living bonus of 100% of an individual’s
weekly payment will be paid in January 2024 torecipients of long-term social welfare payments.

PERSONAL TAX FACTS
T AX CREDITS
PersonalSingleMarried
Widowed PersonSingle Person Child Carer
Home Carer CreditEarned Income Credit*
PAYE
Widowed Parent Bereavement
Tax Credit year 1
Tapering to year 52024
€2023
€

1,875

1,775

3,750
2,415
1,750
1,800
1,875
1,875

3,550
2,315
1,650
1,700
1,775
1,775

3,600

3,600

1,800

1,800

*No Earned Income Credit where an individual is entitled to a PAYE credit.

20% First €42,000
40% Balance
LONE PARENT
20% First €46,000
40% Balance2023€

Fisher Tax Credit

1,270

1,270

Incapacitated Child

3,500

3,300

Dependant Relative

245

245

1,650
3,300

1,650
3,300

245490245490Blind PersonSingle / Married
Married (both blind)
Age Credit
Single / WidowedMarried

INCOME TAX EXEMPTION LIMITSINCOME TAX RATESSingle Persons
2024

2024
€

I Married Persons
2024(Two Incomes)
20% First €84,000**
40% Balance(One income)
20% First €51,000
40% BalanceSingle or Widowed 65 years or over2024€
18,0002023€
18,000Married Couples 65 years or over

36,00036,000** Transferable between spouses up to a maximum of 51,000 for any one spouse. Subject to confirmation in Finance Act.

PRSI
2024
EmployerContribution for Class A
PRSI
Training Levy
Total for Employer
Employee
PRSI
Self-Employed / Directors Contributions
PRSI

10.05%

10.05%

1.00%
11.05% on all income
8.8% on earnings less that €441 p.w.

1.00%
11.05% on all income
8.8% on earnings less that €441 p.w.

* 4.00% on all income* 4.00% on all income** 4.00% on all income** 4.00% on all income* Not applicable if earnings less than 18,300p.a. (352 p.w.) **4.00% subject to minimum payment of 500.
It is proposed from 1st October 2024 that all PRSI contribution rates will increase by 0.1%.
As this release is intended as a general guide to the subject matter, it should not be used as a basis for decisions. For this purpose
advice should be obtained which takes into account all the client’s circumstances. Every effort has been made to ensure the accuracyof the information in the release. In view of its purpose the reader will appreciate that we are unable to accept liability for any errors oromissions which may arise.