Budget 2024 Summary: Stay Updated with Amergin
Minister Michael McGrath unveiled the 2024 budget, presenting a slew of changes, benefits, and incentives that promise to reshape the economic landscape. From property owners to corporate enterprises, from employees to avid readers, there’s something for everyone.
Here’s a snapshot of what’s in store:
For Property Owners:
A new tax deduction is introduced for landlords. If they lease their property for a period of 4 years, they can avail tax deductions at the standard rate on these amounts:2024: €3,000
- 2025: €4,000
- 2026: €5,000
- 2027: €5,000
- Most individuals will experience a financial boost with consolidated income tax changes.
- The threshold for VAT registration is now €40,000 for services & €80,000 for goods.
- The R&D tax deduction rate is now a whopping 30%.
- Acquiring an electric vehicle for corporate use remains lucrative.
Employee Tax Benefits:
- A person earning €60,000 annually could save around €842 due to the amended tax benefits and changes to the Universal Social Charge.
- Various tax credits have been increased:
- Home caregivers: +€100
- Sole caregivers of a child: +€100
- Disabled child credit: +€200
- Changes to VAT registration benchmarks for products and services.
- 9% VAT rate for gas and electricity extended for another year.
- The age for retirement relief benchmarks shifted from 66 to 70.
- A new tax incentive for angel investors has been introduced, with a reduced CGT rate set at 16%.
For the Green Initiatives:
- The VAT rate for residential solar panels remains at 0%, now also covering school installations.
- Faster depreciation provision for energy-efficient equipment has been extended by two years.
For the Agricultural Sector:
- Several provisions have been extended or modified, notably concerning the transfer of farms and applicable allowances.
- Adjustments to the Land Leasing Income Tax Benefit.
Other Noteworthy Changes:
- Lease Tax Deduction is now €750.
- The Help to Buy Scheme is extended until the end of 2025.
- Mortgage Interest Relief is introduced, with a rate set at 20%.
- Audiobooks and E-books will enjoy a 0% VAT rate from January 2024.