The multi-billion euro budget, led by Minister Chambers, focuses on infrastructure, tax changes, and support for households & businesses. Below are the key highlights: 

Tax Changes 

• Inheritance Tax: Capital Acquisition Tax thresholds to increase from €335,000 to €400,000.  Group A threshold increasing from €335,000 to €400,000; Group B threshold increasing from €32,500 to €40,000 and Group C threshold increasing from €16,250 to €20,000. 

• Tax Credits: Personal, Employee, and Earned Income credits will increase by €125, and the tax threshold will rise by €2,000 to €44,000. 

• USC Changes: The Universal Social Charge (USC) will drop from 4% to 3%, and the income entry point will increase to €27,382. This aligns with a minimum wage increase and boosts workers’ pay. 

Rent and Mortgage Relief 

• Help to Buy Scheme: Extended until 2029, providing more support to first-time homebuyers. 

• €1.25 Billion for the Land Development Agency (LDA): This will help develop more affordable housing and sustainable city projects, addressing Ireland’s housing crisis.  

• Renters: The rent tax credit will increase by €250, bringing it to €1,000 for singles and €2,000 for couples. 

• Mortgage Interest Relief A respite for homeowners, a 20% tax relief on the increased interest paid in 2022 as compared to 2023, has been announced. This is capped at €1,250 per property and is aimed at those affected by interest rate hikes. 

• Landlords: Extending the relief for pre-letting expenses for landlords. The relief will continue for three more years, until the end of 2027. 

• Increased stamp duty on Residential Properties: This will come into effect from tonight. The existing rate of 1% will continue to apply to values up to €1 million, and 2% on values above €1 million, with a third rate of 6% to apply to any value in excess of €1.5 million, with immediate effect. Normal transitional arrangements will apply for transactions in process. 

Benefits for Employees and Businesses 

• Tax-Free Bonus:Employers can now give tax-free bonuses of up to €1,500, up from €1,000.
• Benefit-in-Kind (BIK) regime for company cars: The temporary universal relief of €10,000 to the Original Market Value (OMV), which was first introduced in 2023, is being extended for a further year. 

Business Support and Innovation 

• R&D Tax Credit: The first-year payment threshold rises from €50,000 to €75,000 to support small businesses. 

• Capital Gains Tax (CGT) Relief: Start-ups can now benefit from a lifetime limit increase from €3 million to €10 million, encouraging more investment in new ventures. 

• Employment Investment Incentive:Start-Up Relief for Entrepreneurs and the Start-Up Capital Incentive have been extended for a further two years to the end of 2026. 

Social Welfare and Health Investments 

• Carer’s Allowance threshold raised to €625 for singles and €1,250 for couples. 

• Increases in maternity, paternity, and adoptive payments by €15. 

• A new “baby boost” payment for newborns, doubling child benefit payments in the first month.