10th October 2023
Last Updated: 10th October 2023
Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.
We will endeavour to update this with any major changes or announcements as we digest the budget this year.
• Minimum wage to increase on 1st January 2024 from €11.30 to €12.70
• Rent tax credit for private tenants not in receipt of other State housing supports: Increased from €500 to €750, and now includes students in “digs” (rent a room). Claims can be back-dated for the 2022 and 2023 tax years.
Energy Crisis Update & Supports
• 9% VAT rate on light and heat extended to end of October 2024
• Credit on domestic electricity of €450 that will be over 3 payments of €150 each with first one before Christmas, and the third credit in April 2024
• Business Supports: Increased Cost of Business Scheme designed to help small and medium sized businesses with rising costs (fund of €250m)
• Weekly social protection payments will increase by €12
• Social Welfare “Cost of Living Support”: An extra “double week” will be paid in January 2024 to all qualifying recipients
• €400 extra payment in December 2023 for those in receipt of Carer’s Support Grant, Disability Allowance, Blind Pension, Invalidity Pension and Domiciliary Care Allowance.
• Fuel Allowance: €300 lump sum payment will be made in last quarter of 2023
• College fees: Families with an income of less than €100,000 will have college fees for undergraduate students halved to €1,500 (note: 2023 fees reduction to €2,000 remains in place in all other cases).
• Excise for petrol, diesel and marked gas – Amounts deferred will come into effect in 2 installments next year – 1st April 2024 and 1st August 2024
• Mortgages interest relief (1 year): On principal private residence with mortgage between €80,000 – €500,000 at 31/12/2022, tax relief available on the increase on 2023 v 2022 (max relief €1,250 per property).
Business Taxation & Regulation
• Existing BIK rates for electric vehicles staying the same for 2024
• Existing BIK relief (€10,000 reduction in open market value) for all other vehicles extended until 2024
• PRSI contribution rates are going up 0.1% from October 2024
• VAT registration thresholds increased from 1st January 2024; for supplies of goods €80,000 and supplies of services €40,000, turnover that is below the threshold may opt to register with Revenue for VAT.
• Landlord relief for tax years 2024 to 2027, this is where you hold the property for the 4 years, if joint owned then the relief will be apportioned. Relief is that a portion of income will be tax free as follows: €3,000 in 2024, €4,000 in 2025 and €5,000 for years 2026 and 2027. Relief is at 20% and not your tax rate. Need to also ensure registered with RTB and LPT up to date and hold tax clearance certificate. If leave the market in the years above the relief is to be paid back.
Relevant Contracts Tax and Construction Industry
• No changes noted
• Farmers flat rate – reduced from 5% to 4.8%.
• No changes noted.
• 0% VAT rate for solar panels for schools
• Rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €48.50 to €56.00
• No changes noted
(Local) Property Tax (LPT)
• No changes noted
Miscellaneous Provisions & Announcements
• €0.75 increase on pack of 20 cigarettes and other tobacco products
|Budget 2024||Budget 2023|
|Capital Gains Tax Rate||33%||33%|
|Capital Acquisitions Tax Rate||33%||33%|
|Income Tax Rates|
|39% (39% – where payments made less frequently than annually)||39% (39% – where payments made less frequently than annually)|
|Home Carer Credit||€1,800||€1,700|
|Earned Income Tax Credit||€1,875||€1,775|
|Single/widowed with dependent children||€46,000||€44,000|
|Married -one income earner||€51,000||€49,000|
|Married – two income earners||€84,000||€80,000|
|Contribution Ceiling||No limit||No limit|
|Universal Social Charge|
|€ 0 – €12,012||0.5%||0.5%|
|€12,013 – €22,920||2.0%|
|€12,013 – €25,760||2.0%|
|€22,921 – €70,044||4.50%|
|€25,761 – €70,044||4%|
|€70,044 – €100,000||8%||8%|
|Self employed income > €100,000||11%||11%|
|PAYE income in excess of €100,000||8%||8%|
|Age >70/medical card holders with income < €60,000 – Max rate||2.0%||2.0%|
Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive sum