The Government has unveiled a multi-billion-euro Budget 2024 package.

Speaking in the Dáil, Minister for Finance Michael McGrath said this is a budget  which is framed against a backdrop of global uncertainty – both economic and geopolitical - and aims to provide further support to individuals, families and businesses at a time when the cost of living is high.

We have set out below a summary of the measures announced. 

If you have any questions on any matter below please do not hesitate to contact us.

Please note : Measures announced today may change as the Finance Bill makes its way through the Houses of the Oireachtas and additional measures may be introduced by the Finance Bill. 

Individuals/ Income Tax and Work

Income Tax Credits

  • An increase of €2,000 in the income tax standard rate cut-off point for all earners, from €40,000 to €42,000 for single individuals and from €49,000 to €51,000 for married couples / civil partners with one earner.
  • An increase of €100 in the Personal Tax Credit from €1,875
  • An increase of €100 in the Employee Tax Credit from €1,875
  • An increase of €100 in the Earned Income Credit from €1,875
  • An increase of €100 in the Home Carer Tax Credit from €1,800

Rent tax credit

The value of the Rent Tax Credit is being increased from €500 per year to €750 per year for 2024.

The proposal relates only to tenancies registered with the Residential Tenancies Board and licences for the use of a room in another person’s principal private residence.

An amendment is being introduced so parents who pay for their student children who have tenancies in ‘Rent a Room’ or ‘digs’ accommodation can now claim the Rent Tax Credit. This will also be backdated to allow for claims to be made for the 2022 and 2023 tax years. 

Mortgage Interest Relief 

A one-year Mortgage Interest Tax Relief for home owners with an outstanding mortgage balance on their primary dwelling house of between €80,000 and €500,000 as of 31 December 2022 has been announced.

taxpayer must be compliant with their LPT requirements.

Relief will be available in respect of the increased interest paid on the mortgage in the calendar year 2023 as compared with the amount paid in 2022, at the standard rate of 20% income tax. The relief will be capped at €1,250 per property.

Note : No tapering of relief indicated so if a mortgage balance is over the €500,000 (eg by one euro at €500,001) then no relief is available.  

Third Rate of Tax

No third rate of tax announced.


From 1 October 2024 all PRSI contribution rates will increase by 0.1%


  • An increase of €2,840 to the 2% rate band ceiling from €22,920 to €25,760
  • 4.5% USC rate reduced to 4% - this applies to income between €25,760 and €70,044
  • Income of less than €13,000 are exempt from USC
  • The reduced rate of USC concession for medical card holders is being extended for a further two years to 31 December 2025. Reduced rates of USC apply to individuals who have a full medical card and whose income is €60,000 or less.

Capital Acquistion Tax 

  • No change to tax rate (33% after thresholds)
  • No change to annual small gift exemption (€3,000)
  • Retirement Relief - extension from 1 January 2025 of upper age limit for the relief from 65 until the age of 70. It was also indicated that a limit will be introduced on disposals to a child up to the age of 70. Business owners therefore looking to avail of this relief for inter generational transfers show review their position and consider what steps they may wish to take before 1 January 2025.


  • No change to tax relief on pension contributions
  • No change to tax exemption on pension investment income
  • No change to €200,000 tax free retirement lump sum

Small Benefit Exemption
No change to the small benefit exemption which currently enables an employer to give up to two benefits per year (to a maximum annual total of €1,000). Noted from 1 January 2024 employers will have enhanced reporting obligtions which will include the small benefit exemptions. 

Benefit in Kind - Motor Vehicles

  • The temporary universal relief of €10,000 to the Original Market Value is being extended by a further year to 31 December 2024.
  • A temporary suspension of the tapering of the preferential BIK relief of electronic vehicles was also announced. This maintains the €35,000 Original Market Value reduction for 2024 and 2025. The reduction will then be €20,000 in 2026 and €10,000 in 2027.

This means that an employee with an electric company vehicle will see an overall BIK Original Market Value relief of €45,000 in 2024

VRT Relief for Battery Electric Vehicles

The VRT relief for battery electric vehicles, which was due to end on the 31 December 2023, is being extended by two years to 31 December 2025.

VAT rate for gas and electricity
The Minister confirmed that the extension of 9% VAT rate for gas and electricity for a further 12 months to 31 October 2024..

Electricity credits
Electricity credits for all households totalling €450 to be paid in 3 instalments of €150

Fuel allowance recipients will also receive a lump sum payment of €300.

Residual Electricity 

A doubling of the tax disregard in respect of personal income received by households who sell residual electricity from micro-generation back to the national grid was announed.

From 1 January 2024, an income disregard of up to €400 per year will apply to profits or gains arising to a qualifying person from the micro-generation of electricity. This will provide relief from income tax, USC and PRSI.

Business Taxes and Supports

Corporation Tax Rate

The main corporation tax rate for trading remains at 12.5%. The Finance Bill will implement the 15% minimum effective tax rate for large companies as provided for under the OECD Pillar Two agreement.

Territorality/Participation Exemption

It was confirmed again that a participation exemption for foreign sourced dividends will be legislated for in Finance Bill 2024.

An engagement with relevant stakeholders on Ireland’s current regime for interest deductibility is to be undertaken.

Accelerated Capital Allowances / Energy Efficient Equipment

Scheme extended to 31 December 2025

CGT Angel Investor Relief

Relief will be available to an individual who invests in an innovative start-up small and medium enterprise (SME) for a period of at least 3 years. The investment by the individual must be in the form of fully paid-up newly issued shares costing 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 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.

Revised Entrepreneur Relief

It was announced that this is being examined to refocus the relief with a view to further improving the incentives for founders and entrepreneurs in the innovative start-up phase, and to ensure it is contributing to employment creation.

Employment Investment Incentive (EII)

The investment period is being standardised at 4 years and the amount an investor can claim on four year investments is doubled to €500,000.

A further review of EII is to be done in early 2024 which will focus on the potential for further simplification of the scheme.

VAT Registration Thresholds

An increase in the existing VAT registration thresholds for businesses from €37,500 for services and €75,000 for goods to €40,000 for services and €80,000 for goods respectively was announced.

Effective date for this increase to be confirmed (probably 1 Jan 2024 - TBC) 

VAT and Charities

From 1 January 2024, the total annual capped fund for the Charities VAT Compensation Scheme is being increased up from €5 million, to €10 million

Research and Development Tax Credit

Finance Bill 2022 will introduce changes to the payment provisions for the R&D tax credit, to align with new international definitions of refundable tax credits. 

The current system of offset against corporation tax liabilities and payment in three payable instalments is being changed to a new fixed three-year payment system. A company will have an option to call for payment of their eligible R&D tax credit or to request for it to be offset against other tax liabilities, and existing caps on the payable element of the credit are being removed. The first €25,000 of a claim will now be payable in the first year, to provide a cash-flow benefit for smaller research & development projects and to encourage more companies to engage with the regime. Transitional measures will be in place for one year, to smooth the transition to the new payment system for companies that are already engaged in research & development activities

R&D tax credit

The R&D tax credit is being increased from 25% to 30% and the first year payment threshold is being doubled from €25,000 to €50,000

VAT and Audio Books and eBooks

From 1 January 2024, the VAT rate for audiobooks and e-books is being reduced from 9% to zero.

Employer Pension Contributions

Corporation Tax relief will continue to be available on Employer Pension Contributions paid to an approved Occupational Pension Scheme subject to the overall maximum pension funding and benefit limits.

Employer Contributions to a PRSA

There is currently no limit on employer contributions to an employee’s PRSA (however, the overall standard fund threshold for an individual of €2m still applies).

Tax Relief - Employee Pension Contributions 

This relief will continue at the marginal rate of income tax but subject to the Age-Related Contribution Limits and Earnings Cap (and overall Revenue Maximum Approvable Benefit limits).

Retirement Lump Sum

Up to €200,000 remains tax-free and amounts from €200,000 to €500,000 will be taxed at 20%.

Standard Fund Threshold

The total capital value of pension benefits that an individual can draw in their lifetime, the Standard Fund Threshold (SFT) remains at €2 million. There are significant additional tax liabilities where the limit is exceeded.

Welfare & Pensions

Social Protection Recipients

  • €300 Lump Sum payment to all households receiving the Fuel Allowance payment in November 2023;
  • A double payment of Child Benefit for families receiving this payment to be paid in December 2023;
  • A €200 Lump Sum for pensioners and people with a disability receiving the Living Alone Increase in November 2023;
  • A once off payment of €400 to all carers receiving the Carer’s Support Grant in November 2023;
  • A once off payment of €400 to people receiving Invalidity Pension, Disability Allowance or Blind Pension in November 2023 ;
  • A €400 Lump Sum in November 2023 to families receiving the Working Family Payment;
  • Christmas Bonus in December, followed by a further Double Payment in January to assist with the Cost of Living; and
  • €100 per child once off payment for those who receive the Increase for a Qualified Child(ren) on their social welfare payment, paid in November 2023.

Additional measures include : 

  • New Pay-Related Benefit to be introduced for Jobseekers in Q4 2024
  • Weekly rates of qualified child payments will increase by €4 in January 2024 bringing them to €54 for those aged 12 and over and €46 for under 12s
  • €12 across the board increase in weekly payments from January 2024
  • Carers Allowance Earnings Disregard increased to €450 Single / €900 Couple
  • Domiciliary Care Allowance will increase by €10 to €340 per month with effect from January 2024
  • Free Travel scheme extended to people medically certified unfit to drive from July 2024
  • Minimum weekly hours threshold for employers to avail of the Wage Subsidy Scheme reduced from 21 to 15 hours
  • Hot School Meals scheme to be extended to further 900 Primary Schools who responded to Expression of Interest
  • Working Family Payment thresholds for all family sizes to increase by €54 from January 2024
  • Parent’s Benefit to be extended from 7 weeks to 9 weeks from August 2024
  • Child Benefit extended to 18-year-olds in full time education from September 2024

Read More


Other items

  • Provision for the Free Travel Scheme for people medically certified unfit to drive
  • reduce the minimum weekly hours threshold from 21 to 15 hours for employers to avail of the Wage Subsidy Scheme which provides financial incentives to employers who employ people with a disability
  • increase in the Carer's Allowance income disregard to €450 for a single person and €900 for a couple
  • €10 increase a month in Domiciliary Care Allowance from January 2024


Vacant Homes Tax

The rate of the Vacant Homes Tax is being increased from three times to five times a property’s existing base Local Property Tax liability. This increase will take effect from the next chargeable period, commencing 1 November 2023. 

Rented Residential Relief / Landlord Relief

A temporary tax relief has been introduced aimed primarily at  small landlords.

Subject to certain conditions being met, rental income of €3,000 for the year 2024, €4,000 for 2025 and €5,000 for the years 2026 and 2027, will be disregarded at the standard rate.

A full claw-back of the benefit of the relief applies in the event the landlord removes from the rental market, within 4 years, any of the rental properties held in year 1 when the benefit is claimed. There is no clawback after the expiry of the 4-year period.

The relief relates only to tenancies registered with the Residential Tenancies Board, or where a landlord lets a residential property to a public authority (including a Local Authority).

In the case of joint ownership of a property, the relief will be divided in proportion to the percentage of the rental income to which each owner is entitled.

Rent Tax Credit

The value of the Rent Tax Credit is being increased from €500 per year to €750 per year for 2024.

The proposal relates only to tenancies registered with the Residential Tenancies Board and licences for the use of a room in another person’s principal private residence.

An amendment is being introduced so parents who pay for their student children who have tenancies in ‘Rent a Room’ or ‘digs’ accommodation can now claim the Rent Tax Credit. This will also be backdated to allow for claims to be made for the 2022 and 2023 tax years. 



Disclaimer :

Whilst every effort has been made to ensure the accuracy of matters covered by this article, no responsibility for loss or damage occasioned by any person acting, or refraining from acting, as a result of matters above. Professional advice should always be sought before acting on any interpretation of matters covered by this article.

10 October 2023