Budget 2024 key takeaways
This week, the Irish Government announced Budget 2024 with Minister for Finance Michael McGrath and Minister for Public Expenditure Paschal Donohoe laying out a multibillion-euro package.
We have the main takeaways from our key sectors below.
- All households will receive three credits of €150 each to assist with energy bills between the end of this year and April 2024.
- The accelerated capital allowances scheme for energy efficient equipment is being extended for a further two years.
- The tax disregard in respect of personal income received by households who sell residual electricity from micro-generation back to the national grid is being doubled.
- The zero VAT rate on the supply and installation of solar panels is being extended to schools from 1 January 2024.
- VRT relief for battery electric vehicles is being extended to the end of 2025.
- The rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €48.50 to €56.00 from 11 October as per the trajectory set out in the Finance Act 2020.
- The 9% reduced VAT rate for gas and electricity will be extended for another 12 months.
- €380m will be provided to residential and community energy schemes to “help households with the green transition”. Within this funding, a record allocation will be made to the Warmer Homes Scheme that provides free energy efficiency upgrades to the homes of those who need it most.
- €3 million will be allocated for the Digital Services Coordinator to support enforcement of the Digital Services Act.
- Budget 2024 provides for the continued expansion of the National Cyber Security Centre, to strengthen cyber security and build resilience, address the cyber skills gap and develop the cyber security industry in Ireland.
- The National Broadband Scheme expects to reach 200,000 premises by the end of this year. In 2024, a further €348m will be invested to provide another 100,000 homes with the opportunity to connect to fibre broadband.
- €1.1 million will be allocated to fund the Data Protection Commission which will be expanding its workforce next year.
- A total allocation of €22.5 billion is being provided for the health sector, including an €808 million increase in core current funding to address demographic and service pressures.
- €1.23 billion is being provided as part of the National Development Plan for the delivery of additional health infrastructure.
- Next year, the progress on housing will be accelerated with just under €7 billion of funding to the Department of Housing, Local Government and Heritage, of which €2.6 billion will be capital investment in housing. Among the measures is €1.9bn in capital funding in 2024 to deliver 9,300 new build social homes and €265m to support the delivery of 6,400 affordable homes in 2024.
- A revised bank levy will be put in place next year. Minister McGrath said that he will review the levy again next year to “ensure it remains appropriately calibrated”.
- A new capital gains tax relief for angel investors has been announced, which will allow those investors to benefit from a reduced rate of Capital Gains Tax when they dispose of a qualifying investment.
- Minister Michael McGrath said he will be publishing legislation in next week’s Finance Bill to implement the 15% minimum effective tax rate for large companies, as provided for under the OECD Pillar Two agreement.