02/10/2024
Please find attached a copy of our Budget 2025 Summary outlining some of the headline items as announced on Tuesday 1 October 2024.
An increase of –
€2,000 to the standard rate tax band from €42,000 to €44,000 (for a single person)
€125 to the personal tax credit, employee tax credit and earned income credit
€150 to the home carer tax credit and the single parent child credit
€300 to the incapacitated child credit and the blind persons tax credit
€250 in the rent tax credit for single individuals and €500 for jointly assessed couples
The 4.0% USC rate is reduced to 3% and the bands have also been widened in line with increases in the minimum wage.
The Help-To-Buy Scheme is extended from the end of 2025 to the end of 2029
The Mortgage Interest Tax Credit will be extended for one further year.
An increase in the annual limit for the Small Benefit Exemption to €1,500 and allowing employers to provide up to 5 non-cash benefits per year.
The VAT Registration thresholds will be increased to €85,000 for goods and €42,500 for services
The CAT Thresholds will be increased as follows:
Group A – from €335,000 to €400,000
Group B – from €32,500 to €40,000
Group C – from €16,250 to €20,000
A 6% rate of stamp duty for residential property purchases above €1.5m (effective from 2 October 2024). Existing rates of 1% (first €1m) and 2% (next €500k) remain.
An energy credit of €250 per household (paid in two instalments pre/post year-end)
Various increases to Social Welfare Payments (including but not limited to)
€12 increase in most weekly payments from January 2025
Double payment of child benefit to be paid in November and December 2024
Hot school meals to be extended to all primary schools in 2025 (from April onwards)
Free Travel Scheme Companion Pass for all those aged over 70 from September 2025
Various cost of living lump sum payments (in November) as well as the traditional Christmas bonus
Should you have any queries regarding any aspect of the measures announced and what it means for your business, please feel free to contact a member of our team.