Budget 2024 was announced on 10 October 2023.
This was Minister McGrath’s first budget speech and the fourth (and perhaps last) of the coalition government between Fianna Fáil, Fine Gael and the Green Party. It has been billed by the media as a pre-election budget as the Minister announced a range of tax cuts and expenditure measures worth €14bn. This year’s budget was framed against a backdrop of global uncertainty, high inflation and energy costs and a lower growth expectation for Ireland for 2024. Whilst the Minister noted that Ireland’s corporation tax receipts are concentrated he has earmarked €4bn of the “windfall excess taxes” for investment in two new State investment funds – The Infrastructure, Climate and Nature Fund and The Future Ireland Fund.
A range of measures were announced aimed at easing the high cost of living for individuals.
On the international tax front, the legislation introducing the 15% minimum global effective tax rate from 1 January 2024 for large companies will be included in the Finance Bill next week. The Minister also recently announced a participation exemption for foreign sourced dividends on which a public consultation is ongoing. The new participation exemption is due to take effect in 2025. Changes were also announced increasing the R&D tax credit from 25% to 30% which is a welcome development.
In our Budget 2024 briefing, we highlight details of the key budgetary measures, including amendments to the R&D tax credit regime, a range of business tax measures, a new once off mortgage interest relief and other measures to support the cost of living and housing market. Full details will be set out in the Finance Bill, which is expected to be published on 19 October 2023. As usual, on tax matters, the devil will be in the detail.
Please click on the titles below for the key taxation measures of Budget 2024 or contact any member of the Tax team if you have any queries.