The Key Tax Changes:

Threshold Increases for Capital Acquisitions Tax (CAT)

• Group A beneficiaries will see their threshold increase from €335,000 to €400,000.
• Group B threshold is raised from €32,000 to €40,000.
• Group C now stands at €20,000, up from €16,250.

VAT Threshold Adjustments

• The VAT registration threshold for services is now €42,000, previously €40,000.
• For goods, the threshold rises from €80,000 to €85,000.

Small Benefit Exemption for Employees

• The small benefit exemption for employees and directors in receipt of salary is now increased to €1,500 and can include up to five non-cash items.
• A critical note for employers: the Revenue's 2024 enhanced reporting requirements mandate that all non-cash benefits must be reported to Revenue including details of the date paid, the amount and reference to the employee's PPS number.

Residential Property Stamp Duty

• Properties exceeding €1.5 million will now be liable to a stamp duty rate of 6%. Therefore, stamp duty on residential properties is now liable to the following rates:
  • Up to €1,000,000 liable to stamp duty at 1%.
  • Between €1,000,000 and €1,500,000 liable to stamp duty at 2%.
  • Above €1,500,000 liable to stamp duty at 6%.

Support for the Unscripted Production Sector

• A new tax credit is introduced for the unscripted production sector. Eligible productions can avail a 20% corporation tax credit on expenditures incurred, with a cap of €15 million per project.

Simplification of Double Taxation on Foreign Dividends

• Starting from 1 January 2025, the participation exemption for foreign dividends will simplify the existing double taxation provisions.

Increased Tax Credits for Rent and Personal Income

• Rent Tax Credit: This has been raised from €750 to €1,000, and for jointly assessed taxpayers, it now doubles to €2,000, providing substantial relief for renters.
• Personal, Employee, and Earned Income Tax Credits: Each of these credits has seen an uplift of €125, moving from €1,875 to €2,000, thereby increasing take-home pay for many individuals.
• Home Carer Tax Credit: There is now a €150 increase for this credit, enhancing it from €1,800 to €1,950, which will benefit those caring for dependents at home.
• Single Person Child Carer Tax Credit: This credit has also been boosted by €150, rising from €1,750 to €1,900, supporting single parents with additional financial relief.
• Incapacitated Child Tax Credit: A substantial increase of €300 has been applied here, raising the credit from €3,500 to €3,800, which helps families caring for incapacitated children manage better financially.
• Blind Person’s Tax Credit: This credit has increased by €300, from €1,650 to €1,950, providing additional support for those with visual impairments.
• Dependent Relative Tax Credit: With an increase of €60, this credit now stands at €305, offering more support for individuals caring for dependent relatives.

Changes to Capital Gains Tax (CGT) Retirement Relief

• Following the age and financial adjustments in 2023, the Finance Act 2024 will introduce a clawback period of 12 years for relief available for disposals over €10 million, after which the CGT will be abated. These changes are to ensure that the intergenerational transfer of Irish family businesses continues to be supported by the tax system.

Minimum Wage Hike

• Minimum Wage Increase from January: The national minimum wage will increase to €13.50 per hour on January 1st. 

Tax Band Changes

• Single or Widowed (without qualifying child): The 20% tax band threshold increases from €42,000 to €44,000.
• Single or Widowed (qualifying for Single Person Child Carer Credit): The 20% tax band threshold increases from €46,000 to €48,000.
• Single or Widowed (qualifying for Single Person Child Carer Credit): The 20% tax band threshold increases from €46,000 to €48,000.
• Married or Civil Partnership (one spouse or partner with income): The 20% tax band threshold increases from €51,000 to €53,000.
• Married or Civil Partnership (both spouses or partners with income): The 20% tax band threshold increases from €51,000 to €53,000, with the maximum additional band increasing from €33,000 to €35,000