Taxation & Workers

Tax Credits and Rate Bands

• Standard Rate Cut-Off Point (SRCOP) increased by €2,000 to €44,000 per person
• €125 increase per person for Personal, PAYE and Earned Income Credits
• €150 increase for Home Carer Tax Credit and Single Person Child Carer Credit
• €300 increase for Incapacitated Child Tax Credit and Blind Person’s Tax Credit
• €60 increase in Dependent Relative Tax Credit

Universal Social Charge (USC)

• Rate of USC dropping from 4% to 3%
• The entry threshold to the USC rate will increase from €25,760 to €27,382

Small Benefit Exemption

• Increasing from €1,000 to €1,500
• Payments allowed per year - increasing from 2 to 5

Minimum Wage

• Increasing by 80c per hour to €13.50, effective from 1st January 2025

Housing

Rental

• Increase of €250 in Rent Tax Credit, now €1,000 for single or separately assessed individuals & €2,000 for jointly assessed couples

Help-to-Buy (HTB) Scheme

• Help-to-Buy Scheme has been extended to the end of 2029

Mortgage Interest

• Mortgage Interest Tax Relief extended for one year for homeowners with a mortgage balance of between €80,000 and €500,000 on their primary dwelling, as at 31st December 2022
• Relief will be 20% of the increase in mortgage interest paid in 2022 vs 2024

Vacant Homes Tax

• Increased to seven times the Local Property Tax (LPT) charge

Capital Acquisitions Tax

Group Thresholds increased for the first time since 2019:

• Group A – from €335,000 to €400,000
• Group B – from €32,500 to €40,000
• Group C – from €16,250 to €20,000

Energy

• Energy credit of €250 will be paid to households in two instalments, one in 2024 and one in 2025
• 9% vat rate for Gas & Electricity will be extended to the end of April 2025

Education

• A once-off reduction of 33% in the contribution fee for apprenticeships in higher education
• €1,000 once-off reduction in the contribution fee for college students
• Free Schoolbooks Scheme extended to all Transition & Senior Cycle Students
• Capital Allocation of €1.3 billion will support 350 building projects and 200 new school projects

Child Benefit

• Child Benefit & Foster Care Allowance – Two double payments will occur in November and December 2024
• Qualified Child Payment - €4 increase per week for Under 12s and €8 increase per week for Over 12s
• Newborn Baby Grant of €420 for each newborn child (Triple Child Benefit Payment)
• Maternity, Paternity and Adoptive Benefit to increase by €15 per week
• Monthly Domiciliary Care Allowance to increase by €20
• Double payment of Foster Care Allowance before the end of 2024

Social Welfare

• €12 weekly increase for Social Welfare Payments, including pensions
• A €300 lump sum payment for Fuel Allowance recipients will be paid in November
• Additional €200 will be paid for those in receipt of Living Alone Allowance
• €400 once-off payment for recipients of Carer’s Support Grant, Disability Allowance, Blind Welfare Allowance, Invalidity Pension and Domiciliary Care Allowance
• €400 once-off payment for recipients of Working Family Payment
• Carer’s Support Grant will increase by €150, to €2,000

Public Sector Employment

• 1,600 additional Special Needs Assistants (SNAs) & 768 extra Special Education Teachers
• 1,000 additional Gardaí & 150 extra Gardaí civilian staff
• 350 additional Irish Prison Service personnel 
• 400 additional International Protection Office personnel
• Net increase of 400 Defence Forces members in 2025

VAT

Increase in VAT Registration thresholds for businesses from:

• €40,000 to €42,500 for service only businesses
• €80,000 to €85,000 for goods and services providers

Excise Duty

• Cigarettes duty increased by €1.00 per pack of 20, pro rata increases will be applied for all other tobacco products
• E-cigarettes: introduction of 50c tax per ml of e-liquid to commence mid-2025

Transport

• Extension of Young Adult and Student Card to cover adults aged 19-25 to the end of 2025
• Free public transport will be extended to include children aged 5-8 for the first time

Capital Expenditure

€3 billion from the sale of AIB shares will be allocated as follows:

• €1 billion to Irish Water for non-domestic capital investment
• €1.25 billion to the Land Development Agency for the development of social and affordable housing
• €750 million for the development of the Electricity Grid Network

Please note: There may be further changes to the above information following the Finance Bill. Every effort has been made to ensure that the information provided here is accurate and up to date (as of 1st October 2024). The information provided is of a general nature and may not address the specific circumstances of a particular individual. Cornmarket does not accept any liability arising from any errors or omissions.