Oct 10, 2023 | Cathal McCabe
This year’s Budget has been framed against a backdrop of global uncertainty both economical and geopolitical. Headline inflation for the year is estimated to be 5.25%, falling to 2.9% in 2024 while the economy is projected to grow by 2.25% in 2023 and 2024.
A summary of the main measures which may impact on individuals directly is outlined below. This document is intended as a summary of the key components of Budget 2024 that might impact you, your family and business.
 Personal Tax
- The standard rate band has been increased by €2,000 for all earners.
- The Personal / Employee and Earned income credit have been increased by €100.
- USC rate of 4.5% reduced to 4%.
- No headline changes to CGT/CAT rates or thresholds.
Income Tax Rates & Band’s
|Single-person standard rate band||€40,000||€42,000|
|Married couple, one income standard rate band||€49,000||€51,000|
USC Rates & Bands
|€25,761 – €70,044||4%|
Income Tax Credits
|Personal tax credit||€1,775||€1,875|
|Employee tax credit||€1,775||€1,875|
|Earned income credit||€1,775||€1,875|
- Extension of Help to Buy scheme for First Time Buyers until the end of 2025.
- Increase in rent tax credit to €750 for private tenants. Parents can now claim the credit on behalf of children who have tenancies in rent a room or digs accommodation.
- Temporary tax relief for landlords. For 2024 the first €3,000 will be exempt from income tax rising to €4,000 in 2025 and €4,000 in 2026 & 2027. This relief will be subject to conditions.
- Temporary mortgage interest relief [capped @ €1,250] will apply to variable rate and tracker rate mortgages. The relief will apply to the increased interest cost paid in 2023 compared to 2022 for certain mortgages.
- Vacant homes tax will increase to 5 times the Local Property Tax levy.
- Retirement Relief – proposed increase in the upper age limit from 65 to 70. The reduced relief will now apply from age 70. This will come into effect in 2025.
- A new capital gains tax relief for angel investors will be introduced.
- Vat registration thresholds to increase to €40,000 and €80,000 respectively.
 Pensions / Investments
- No changes were announced to pension tax relief or thresholds.
- No changes were announced to DIRT rates.
- VAT rate on newspapers reduced to 0%.
- VAT rate for the hospitality industry will be restored to the 13.5% rate in March 2023.
- Flat rate for farmers reduced from 5.5% to 5%.
Cost of Living Measures
 Energy Assistance
- Electricity energy credit of €450 to be paid to households in three installments of €150 over the coming months.
- An additional lump sum fuel allowance of €300 is to be paid to fuel allowance recipients.
- 9% VAT rate for electricity and gas bills extended until 2025.
 Social Welfare Measures
- Once off double week “Cost of Living Support” payment to all social welfare recipients which will be made in January. This payment is in addition to the Christmas bonus.
- Double child benefit payment to all qualifying households in December.
- Once-off lump sum payment of €200 to those in receipt of the Living Alone Allowance.
- State Pension will increase by €12 a week.
 Childcare Measures
- Reduction of 25% in childcare costs from September 2024.
- Free schoolbooks at the junior cycle in secondary school.
Please note that this is a general summary and no action should be taken without taking detailed advice.
|Telephone:||01 491 4132|
|Office:||192-194 Harold’s Cross, Dublin D6W AP86|