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Budget 2024

Budget 2024 was announced today in the midst of a strong economy but with global uncertainty as a backdrop.

There continues to be energy cost challenges and inflation is having a real impact on individuals and businesses. Therefore, Budget 2024 is, in general, about supporting families and the SME sector. Other than increases in direct payments to social welfare recipients, to help families, the Minister for Finance proposes that:-

•the point at which a single individual pays the top rate of income tax is set to be increased to €42,000 from €40,000. 

•the Personal Tax Credit and Employee/Earned Income Credit are increased by €100 each. The USC rate of4.5% is reduced to 4%.

•electricity credits to all households of €450 is granted towards energy costs.

•one year mortgage interest relief for certain mortgage holders is provided.

•renters receive a tax credit of €750 per annum to include eligible parents who pay for their children's student accommodation.

For SMEs, the Minister for Public Expenditure, NDP Delivery and Reform announced that a €250 million package of temporary supports is being developed to support businesses through current challenges associated with cost-of-living pressures.  The Government did not avail of the opportunity to provide general support for entrepreneurial business owners by reducing the capital gains tax rate of 33%.  However, there will be a reduced rate of capital gains tax on gains realised on the sale of certified investments by investors in start-up SMEs and the Employment Incentive Scheme will be improved. In addition, the R&D Tax Credit will be increased from 25% to 30%.

For residential property landlords, it is proposed that a relief at the 20% rate of income tax be allowed from 2024onwards at €3,000 increasing annually to €5,000 in 2026 and 2027.

To view our full breakdown of Budget 2024, CLICK HERE