Budget 2024
In Minister Michael McGrath’s first Budget address, the Minister highlighted that the needs of our society today must be balanced with ensuring the wellbeing of our economy for future generations.
The Budget package unveiled today amounts to €14 billion. It comprises a €6.4 billion core budget allocation, €2 billion for one-time cost-of-living measures, and €4.75 billion for non-core expenditures, including €250 million for the public capital program funded by windfall corporation tax receipts. Housing receives nearly €7 billion, with €2.6 billion for housing capital investment, aiming to deliver 9,300 social homes and 6,400 affordable homes.
The health sector will see increased capacity with funding for over 2,500 additional beds and the recruitment of more than 22,000 staff. Additionally, measures support enterprises, including an increase in the R&D Tax Credit from 25% to 30% and a €250 million package to assist businesses facing rising costs.
10 tax-related changes announced in the budget:
| 1. The Research and Development (R&D) Tax Credit will increase from 25% to 30%. | 6. Changes to the retirement relief regime include extending the upper age limit to 70 and implementing a €10 million limit for disposals to a child starting in 2025. |
| 2. An additional €35 million is allocated to the Department of Enterprise, Trade, and Employment, supporting various measures to promote regional investments and provide financial support and mentoring programs through Local Enterprise Offices. | 7. The Key Employee Engagement Programme (KEEP) is extended to 2025, with a doubled limit for unexercised qualifying share options, pending EU State aid approval. |
| 3. A new capital gains tax relief for angel investors in innovative start-up SMEs was introduced, along with enhancements to the Employment Investment Incentive (EII) scheme. | 8. The project cap for qualifying expenditure in the Section 481 Film Tax Credit regime is raised from €70 million to €125 million, pending State aid approval. |
| 4. Angel investors can now enjoy reduced Capital Gains Tax (CGT) rates (16% or 18% for partnerships) on qualifying investments held for at least three years, up to twice their investment value. | 9. The accelerated capital allowances scheme for energy-efficient equipment receives a two-year extension. |
| 5. The EII regime standardizes the four-year investment period, doubling the claimable relief for four-year investments from €250,000 to €500,000. | 10. The first-year payment threshold for R&D projects will rise from €25,000 to €50,000 to support smaller projects. |
"It is unusual for the Government to have so much to give out to so many in a year in which an election is on the horizon. Almost all sectors of the country will benefit from a combination of reduced taxes, increased welfare, once-off cost of living supports and a significant increase in both current and capital expenditure. The real test will be the ability to deliver the significant capital expenditure projects in a timely and cost-efficient manner over the next number of years to the benefit of society and for the continued growth and development of the Irish economy."
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Budget 2024 Briefing live webcast
Our expert panel offer insights into the impact of Budget 2024 on business and the economy.
Our live webcast Budget 2024 Briefing on 11 October 2023 is an in-depth discussion of the key announcements made in the budget and their impact on you and your business.
This year, we were delighted to welcome Professor Alan Barrett, CEO of the Economic and Social Research Institute (ESRI), as guest speaker. Alan shares his perspective on Budget 2024 and the broader economic landscape.
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