Budget 2024 addressed a wide range of issues in the Irish economy from business and climate to the cost of living and accommodation. Here are the main points.
- 130,000 small and medium businesses will get up to half of their commercial rates back under a special €250m package aimed at softening the impact of an unprecedented €1.40 increase in the minimum wage.
- R&D tax credit to be increased from 25pc to 30pc.
- Targeted capital gains tax relief for angel investment to encourage funding for start-ups
- Legislation to be published in Finance Bill to implement the 15% minimum effective tax rate for large companies under the OECD Pillar Two agreement. “This is a once in a generation reform to our corporation tax system,” said Finance Minister Michael McGrath, TD.
- Two multi-billion euro funds are to be established to futureproof the economy, fund infrastructure and climate projects.
- Tax disregard for income received by households who sell residual electricity from micro-generation back to the national grid will be doubled.
- Zero Vat rate on supply and installation of solar panels extended to schools from 1 January next year.
- €380m to be provided for community and residential energy schemes to reduce greenhouse gas emissions and energy bills
- There will be a €7.50 increase on the current rate of Carbon Tax that is applied per tonne of carbon dioxide emissions by carbon fuels.
- This will bring the carbon tax rate up to €56.00 per tonne
Cost of Living and Financial Wellbeing
- Temporary mortgage interest tax relief worth up to €1,250. The relief will be available to homeowners whose principle private residence has an outstanding mortgage of between €80,000 and €500,000 as of December 31, 2022.
- Households to receive a further set of credits to help with energy bills over winter. Three credits of €150 each will be provided between the end of this year and April next year.
- The top rate of 40% income tax is to increase by €2,000 to €42,000 in the Budget.
- PAYE tax credits and other related credits will increase by €100.
- The USC of 4.5pc rate will drop to 4pc, saving the average worker €235 a year.
- The ceiling for the 2pc rate is to go up by €2,800 – saving those workers an additional €56 a year.
- Single person on €46,000 will be more than €2,000 better off after income tax and USC changes, the minister said.
- Forecourt fuel prices will increase from midnight tonight – adding €1.28 and €1.48 to the cost of a 60-litre fill of petrol and auto diesel respectively.
- The Christmas Bonus to those in receipt of regular Social Protection payments will be paid in early December.
- Child benefit payments are also extended to those aged over 18 who are still attending secondary school.
- A one-off €400 payment will be made for people on the Working Family Payment and those receiving the Carer’s Allowance and the Disability Allowance.
- A one-off €100 will be paid to those in receipt of the Qualified Child Payment. It is an extra welfare support targeted particularly at lone parents.
- Help to Buy scheme extended to 2025.
- Applicants of local authority affordable purchase scheme will now be able to avail of Help to Buy.
- €1.9bn in capital funding to deliver 9,300 new-build social homes, €265m to deliver 6,400 affordable homes; €242m for homeless services and accommodation, with €35m going to the Housing First initiative.
- €90m for the retrofitting of social housing next year; and €207m euro in funding aimed at bringing vacant and derelict units back into use.
- Landlords will received tax relief at the 20% standard rate on a proportion of their rental income. This would see rental income of €3,000 for 2024, €4,000 for 2025, and €5,000 for 2026 and 2027 disregarded at the standard rate – as long as landlords stay in the market for that full four-year period.
Transport and electric vehicles
- BIK on company cars will be extended for a further year the temporary universal relief of €10,000 to the Original Market Value
- Together with the extension of the universal Original Market Value relief of €10,000, this measure will mean that an employee with an electric company vehicle will see an overall BIK Original Market Value relief of €45,000 in 2024
- VRT Relief – VRT relief for battery electric vehicles is to be extended for a further two years to the end of 2025. This relief applies to battery electric vehicles with a value of up to €50,000