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Budget 2025 Highlights

We are pleased to bring you our summary of the tax measures set out in Budget 2025, which was announced yesterday, 1 October 2024, by Minister Jack Chambers.

This Budget sets out a number of tax measures focused on small and medium sized businesses and their owners. The changes to angel investor relief and retirement relief are examples of this.

The tax amendments aimed at increasing the take-home pay of individuals are welcome. The fact that employees can receive five non-cash benefits per annum up to a total value of €1,500 is particularly pleasing in light of increased Revenue scrutiny and reporting in this area.

The tax compliance and reporting burden on businesses has grown increasingly complex and costly in recent years and while Minister Chambers acknowledged this in his speech, the lack of concrete measures aimed at small business is disappointing.

Should you have any taxation or business questions, our experienced team will be happy to share their insights with you.

Personal Taxation

  • Standard rate band increased by €2,000

  • Reduction of 4% USC rate to 3% – small increase in some bands

  • Income tax rates remain the same

  • Increase of €125 in the personal tax and employee/earned income credits

  • Increase of rent tax credit of €250

  • Extension of limited Mortgage Interest Relief

  • Extension of Help to Buy Property Scheme to 31 December 2029

  • Increase in employer’s PRSI rates by 0.1% from 1 October 2024

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Business taxation

  • Changes to Capital Gains Tax (CGT) relief for angel investors

  • Changes to CGT retirement relief

  • Changes to Benefit in Kind (BIK) on cars

  • Increase of tax relief available for investments in companies

  • Expansion of the start-up relief for new companies

  • Improvements in the Research & Development tax credit

  • Increase of annual employee small benefit exemption from €1,000 to €1,500

  • New audio-visual tax credit for unscripted productions

  • Introduction of exemption for companies who receive foreign dividends

  • Increase in VAT registration thresholds

  • Consultations on various tax matters

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Other measures

  • Excise duty to increase by €1 on a packet of 20 cigarettes with a pro rata increase on other tobacco products

  • Changes to stamp duty on houses above €1.5m

  • Vacant homes tax increased

  • Stamp duty on bulk-buying houses increased from 10% to 15%

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