CORPORATION TAX RATE

No changes to Corporation Tax announced. Minister for Finance will be publishing legislation to implement the 15% minimum effective tax rate for large companies as provided for under the OECD Pillar Two agreement.

CAPITAL GAINS TAX

• A new relief is being introduced to encourage angel investment in innovative start ups. The relief will be available to an individual who invests in an innovative start-up SME for a period of 3 years. The investment must be in the form of fully paid up ordinary share capital of at least €10,000 and constituting between 5% and 49% of the ordinary issued share capital of the company. Qualifying investors may avail of an effective reduced rate of CGT of 16% or 18% if through a partnership, on a gain of up to twice the value of their initial investment. There is a lifetime limit of € 3 million on gains to which the reduced rate of CGT will apply.
• From 1 January 2025 Retirement Relief is being extended to bring the upper age limit from
  65 to 70. The reduced relief which was available on disposals from age 66 onwards will now apply from age 70. From 1 January 2025 there will be a new limit of €10 million on the relief available on disposals to a child up to the age of 70.

BUSINESS SUPPORTS

• The Research and Development (R&D) tax credit is being increased from 25% to 30% in respect of 2024 expenditure, for which claims will be filed in 2025. The first year R& D payment threshold allows for a claim up to the threshold amount to be paid in full in year 1, rather than over three years. The current R&D threshold of €25,000 is being increased to €50,000.
• The Film Corporation Tax Credit is being enhanced whereby the maximum qualifying expenditure in respect of certain audiovisual productions for which the 32% credit can be granted (currently capped at €70 million) is being increased to €125 million.
• The accelerated capital allowances scheme for Energy Efficient Equipment is being extended for two years to 31 December 2026.

BUSINESS TAXATION

• From 1 January 2024, the minimum holding period to obtain relief for Employment Investment Incentive (EII) is being standardised to 4 years for all investments and the limit on the amount that an investor can claim relief on for such in investments is being increased to €500,000.
• The temporary relief from benefit in kind (BIK) of €10,000 applied to the Original Market Value of a vehicle (including vans) for vehicles in category
  A-D and the amendment to the lower limit of the highest mileage band is being extended to 31 December 2024.
• The tapering mechanism applied to BIK relief for electric vehicles is being enhanced by extending the current Original Market Value deduction of €35,000 until the end of 2025 followed by a reduction to €20,000 in 2026 and €10,000 in 2027.

PROPERTY / BUILDING

• A new tax relief for landlords is being introduced from 1 January 2024. It will provide relief at the standard rate of income tax. Relief will be as follows €3,000 in 2024, €4,000 in 2025 and €5000 in 2026 and 2027. A full clawback of the benefit of the relief will apply in the event that the landlord removes any property (held in the first year the benefit is claimed) from the rental market within 4 years.
• Vacant Homes Tax is being increased from three to five times a property’s existing base Local Property Tax liability, effective from 1 November 2023.
• The Residential Zoned Land Tax (RZLT) liability date is being extended by one year to allow for the planned 2024 review of maps to take place.
• The concrete product levy will no longer apply to pouring concrete used in the manufacture of precast concrete products. A refund scheme will apply for those who paid the levy on such concrete between 1 September 2023 and 31 December 2023.

MINIMUM WAGE INCREASE

From 1 January 2024 the national minimum wage will increase by €1.40 per hour to €12.70 per hour.

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