VAT
The VAT registration thresholds will be increased from €40,000 to €42,500 for services and from €80,000 to €85,000 for goods with effect from 1 January 2025.
The temporary reduction in the VAT rate for electricity and gas to 9% is being extended by six months to 30 April 2025.
The VAT rate on the installation of heat pumps is to be reduced from the standard rate of 23% to 9%, bringing down the cost of replacing oil and inefficient boilers with effect from 1 January 2025.
The unregistered farmers flat rate scheme will increase from 4.8% to 5.1%.
Excise
The excise relief for small cider and perry producers will be extended, providing financial support to these producers within the alcoholic beverage industry.
A domestic tax of 50c per ml of e-liquid is to be introduced from mid-2025, bringing the typical price of a disposable device to €9.23 including VAT.
Excise duty on tobacco products is being increased by €1 inclusive of VAT on a pack of 20 cigarettes in the most popular price category together with pro rata increases for other tobacco products.
VRT
A VRT amendment has been made in respect of commercial battery electric vehicles (BEVs) so that they can qualify for the €200 VRT rate.
An emissions-based approach to VRT for B commercial vehicles has been introduced. This measure will provide for a lower 8% rate for category B vehicles with CO2 emission of less than 120g per kilometre, with a view to encouraging the purchase of such vehicles.
Stamp duty on residential property
A third rate of stamp duty on the acquisition of property in cases where the value exceeds €1.5 million has been introduced. A 6% rate will now apply to the element of a property’s value exceeding €1.5 million. The 1% rate applying to the first €1 million remains unchanged, and the 2% rate now applies to residential value between €1 million and below €1.5 million.
Stamp duty on bulk purchases
The higher rate of stamp duty on bulk acquisitions of houses increased from 10% to 15% with immediate effect.
Vacant Homes Tax
From the next chargeable period commencing 1 November 2024, the rate of the Vacant Homes Tax will increase from five times the property’s base Local Property Tax liability to seven times the base liability.
Residential Zoned Land Tax
Owners of Residential Zoned Land will have the opportunity to avail of exemption in 2025 if seeking a change in the zoning status of their land to reflect the economic activity being undertaken.
Accelerated capital allowances claims for farming safety equipment
A 50% rate of annual wear & tear allowances has been introduced for the purchase of certain farm safety equipment and adaptive equipment for farmers with disabilities. This represents a 4x increase in the granting of tax relief relative to the standard 12.5% rate which grants relief over eight years and covers additional Targeted Agriculture Modernisation Schemes (TAMS) eligible equipment not previously supported.
Stock relief
General Stock Relief, Young Trained Farmer Stock Relief, and Stock Relief for Registered Farm Partnerships provided deductions from trading income when calculating faming profits. All three were due to expire at the end of this year but have been extended to 31 December 2027.
Carbon tax
Increasing from €56 to €63.50 per tonne of CO2.