Budget 2024 Summary: Key Highlights & Implications- Amergin Group

Written by Amergin Group | Oct 10, 2023 1:30:16 PM

Minister Michael McGrath unveiled the 2024 budget, presenting a slew of changes, benefits, and incentives that promise to reshape the economic landscape. From property owners to corporate enterprises, from employees to avid readers, there’s something for everyone. 

Here’s a snapshot of what’s in store:

For Property Owners:

A new tax deduction is introduced for landlords. If they lease their property for a period of 4 years, they can avail tax deductions at the standard rate on these amounts:2024: €3,000

  • 2025: €4,000
  • 2026: €5,000
  • 2027: €5,000

Tax Provisions:

  • Most individuals will experience a financial boost with consolidated income tax changes.
  • The threshold for VAT registration is now €40,000 for services & €80,000 for goods.
  • The R&D tax deduction rate is now a whopping 30%.
  • Acquiring an electric vehicle for corporate use remains lucrative.
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Employee Tax Benefits:

  • A person earning €60,000 annually could save around €842 due to the amended tax benefits and changes to the Universal Social Charge.
  • Various tax credits have been increased:
    • Home caregivers: +€100
    • Sole caregivers of a child: +€100
    • Disabled child credit: +€200

Corporate Highlights:

  • Changes to VAT registration benchmarks for products and services.
  • 9% VAT rate for gas and electricity extended for another year.
  • The age for retirement relief benchmarks shifted from 66 to 70.
  • A new tax incentive for angel investors has been introduced, with a reduced CGT rate set at 16%.

For the Green Initiatives:

  • The VAT rate for residential solar panels remains at 0%, now also covering school installations.
  • Faster depreciation provision for energy-efficient equipment has been extended by two years.

For the Agricultural Sector:

  • Several provisions have been extended or modified, notably concerning the transfer of farms and applicable allowances.
  • Adjustments to the Land Leasing Income Tax Benefit.

Other Noteworthy Changes:

  • Lease Tax Deduction is now €750.
  • The Help to Buy Scheme is extended until the end of 2025.
  • Mortgage Interest Relief is introduced, with a rate set at 20%.
  • Audiobooks and E-books will enjoy a 0% VAT rate from January 2024.

Wish to delve deeper into the details of the budget?

Download the full document here

Contact

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email us: info@amerginconsulting.com

Phone number: + 353 (01) 201 6953

Dublin

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Dublin 2  D02 H364
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