Let’s delve deep into the changes… 

Tax Cuts: 

• 2024 Personal Tax Credits Increase: Good news for the taxpayer. Personal, PAYE, and earned income tax credits have received a boost of €100, making the new amount €1,875. 
• Standard Rate Band Expansion: A significant change for higher-income taxpayers. The Standard Rate Band now stands increased by €2,000, taking it to €42,000. 
• Universal Social Charge (USC) changes in 2024: The 4.5% USC has been scaled back to 4%. Moreover, the ceiling for the 2% lower rate of USC is now increased by €2,840, making it applicable for earnings up to €25,760. 

Mortgage Holders: 

• Mortgage Interest Rate Relief 2024: 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. 

Housing, Landlords, and Renters: 

• Help-to-Buy Scheme Extension 2025: Aiding those aiming for local authority affordable purchases, the Help-to-Buy scheme will now run till the end of 2025. 
• Renters Tax Relief: An uplifting change for private renters, the tax relief sees an increase from €500 to €750. 
• Landlord Tax Relief: Depending on certain conditions, 20% staggered temporary relief. 

Businesses and Workers: 

• R&D Tax Credit: Businesses engaged in Research and Development are in for a treat as the tax credit jumps from 25% to 30%. 
• First-year Payment Threshold: Companies engaged in smaller R&D projects can rejoice as the threshold has doubled from €25,000 to €50,000, ensuring better cash flow. 
• New Capital Gains Tax Relief: Angel investors now get a reduced rate of Capital Gains Tax for qualifying investments. 16% or 18% if through a partnership. 3million lifetime limit on gains 
• 2024 National Minimum Wage Increase: Come January 2024, the national minimum wage will see a rise of €1.40, setting the new hourly rate at €12.70. 

Families and Children: 

• Free Schoolbooks Initiative 2024: For the junior cycle students in secondary schools as they are set to receive free schoolbooks, benefiting approximately 210,000 children. 
• College Fee Reduction: A sigh of relief for families earning under €100,000 as undergraduate college fees will be slashed by half to €1500. Other families will see college fees for full-time undergraduate students cut by €1,000 

Energy Credits: 

• Household Energy Credits 2024: Households can expect three energy credits of €150 each, to be disbursed between the end of this year and April next year. 
• Extended VAT Rate on Energy Products: The lower 9% VAT rate on energy products gets an extension for another 12 months. 

There is something for everyone in this budget. Do you have a plan? Why not book a FREE Financial Planning Consultation.