Summary of announcements
Presented by
Opes Wealth Trust
192-194 Harold’s Cross
Dublin 6W
Executive summary
This year’s Budget has been framed against a backdrop of global uncertainty both economical and geopolitical. Headline inflation for the year is estimated to be 5.25%, falling to 2.9% in 2024 while the economy is projected to grow by 2.25% in 2023 and 2024.
A summary of the main measures which may impact on individuals directly is outlined below. This document intended as a summary of the key components of Budget 2024 that might impact you, your family and business.
Taxation Measures
[1] Personal Tax
The standard rate band has been increased by €2,000 for all earners.
The Personal/Employee and Earned income credit have been increased by €100.
USC rate of 4.5% reduced to 4%.
No headline changes to CGT/CAT rates or thresholds.
Income Tax Rates & Band’s
USC Rates & Bands
Income Tax Credits
[2] Housing
Extension of Help to Buy scheme for First Time Buyers until the end of 2025.
Increase in rent tax credit to €750 for private tenants. Parents can now claim the credit on behalf of children who have tenancies in rent a room or digs accommodation.
Temporary tax relief for landlords. For 2024 the first €3,000 will be exempt from income tax rising to €4,000 in 2025 and €4,000 in 2026 & 2027. This will relief be subject to conditions.
Temporary mortgage interest relief [capped @ €1,250] will apply to variable rate and tracker rate mortgages. The relief will apply on the increased interest cost paid in 2023 compared to for 2022 for certain mortgages.
Vacant homes tax will increase to 5 times the Local Property Tax levy.
[3] Business & Entrepreneur’s
Retirement Relief- increase in the age limit from 66 to 70.
A new capital gains tax relief for angel investors will be introduced.
[4] Pension’s/Investments
No changes announced to pensions tax relief or thresholds.
No changes announced to DIRT rates.
Cost of Living Measures
[1] Energy Assistance
Electricity energy credit of €450 to be paid to households in three instalments of €150 over the coming months.
Additional lump sum fuel allowance of €300 to be paid to fuel allowance recipients.
9% VAT rate for electricity and gas bills extended until 2025.
[2] Social Welfare Measures
Once off double week “Cost of Living Support” payment to all social welfare recipients which will be made in January. This payment is in addition to the Christmas bonus.
Double child benefit payment to all qualifying households in December.
Once off lump sum payment of €200 to those in receipt of the Living Alone Allowance.
State Pension will increase by €12 a week.
Childcare Measures
Reduction of 25% in childcare costs from September 2024.
Free schoolbooks at junior cycle in secondary school.
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