Finance Act 2024

PART 1 Universal Social Charge, Income Tax, Corporation Tax and Capital Gains Tax

Chapter 1 Interpretation

1. Interpretation (Part 1)

1. In this Part, “Principal Act” means the Taxes Consolidation Act 1997.

Chapter 2 Universal Social Charge

2. Amendment of section 531AN of Principal Act (rate of charge)

2. (1) Section 531AN of the Principal Act is amended—

(a) in subsection (3), by the substitution of “€27,382” for “€25,760”, and

(b) by the substitution of the following for Part 1 of the Table to that section:

“Part 1

Part of aggregate income (1)	Rate of universal social charge (2)
The first €12,012	0.5 per cent
The next €15,370	2 per cent
The next €42,662	3 per cent
The remainder	8 per cent

”.

(2) Subsection (1) applies for the year of assessment 2025 and each subsequent year of assessment.

Chapter 3 Income Tax

3. Rate of charge and personal tax credits

3. As respects the year of assessment 2025 and subsequent years of assessment, the Principal Act is amended—

(a) in section 15—

(i) in subsection (3)(i), by the substitution of “€35,000” for “€33,000”, and

(ii) by the substitution of the following Table for the Table to that section:

“TABLE

PART 1

Part of taxable income (1)	Rate of tax (2)	Description of rate (3)
The first €44,000	20 per cent	the standard rate
The remainder	40 per cent	the higher rate

PART 2

Part of taxable income (1)	Rate of tax (2)	Description of rate (3)
The first €48,000	20 per cent	the standard rate
The remainder	40 per cent	the higher rate

PART 3

Part of taxable income (1)	Rate of tax (2)	Description of rate (3)
The first €53,000	20 per cent	the standard rate
The remainder	40 per cent	the higher rate

”,

(b) in section 461—

(i) in paragraph (a), by the substitution of “€4,000” for “€3,750”,

(ii) in paragraph (b), by the substitution of “€4,000” for “€3,750”, and

(iii) in paragraph (c), by the substitution of “€2,000” for “€1,875”,

(c) in section 462B(3), by the substitution of “€1,900” for “€1,750”,

(d) in section 465(1), by the substitution of “€3,800” for “€3,500”,

(e) in section 466(2), by the substitution of “€305” for “€245”,

(f) in section 466A(2), by the substitution of “€1,950” for “€1,800”,

(g) in section 468(2)—

(i) by the substitution of “€1,950” for “€1,650”, and

(ii) by the substitution of “€3,900” for “€3,300”,

(h) in section 472(4), by the substitution of “€2,000” for “€1,875” in each place where it occurs, and

(i) in section 472AB—

(i) in subsection (2), by the substitution of “€2,000” for “€1,875” in each place where it occurs, and

(ii) in subsection (3), by the substitution of “€2,000” for “€1,875” in each place where it occurs.

4. Amendment of section 472BB of Principal Act (sea-going naval personnel credit)

4. Section 472BB(3) of the Principal Act is amended by the substitution of “Where for any of the years of assessment 2021 to 2029 (both years inclusive)” for “Where for the year of assessment 2021, 2022, 2023 or 2024”.

5. Amendment of section 473B of Principal Act (rent tax credit)

5. (1) Section 473B of the Principal Act is amended—

(a) in subsection (1), in the definition of “specified amount”—

(i) in paragraph (a), by the substitution of “€10,000” for “€5,000”, and

(ii) in paragraph (b), by the substitution of “€5,000” for “€2,500”,

and

(b) in subsection (13)—

(i) by the substitution of “€1,000” for “€750”, and

(ii) by the substitution of “€2,000” for “€1,500”.

(2) Subsection (1) shall be deemed to have come into operation on 1 January 2024.

6. Amendment of section 473C of Principal Act (mortgage interest tax relief)

6. Section 473C of the Principal Act is amended—

(a) in subsection (1)—

(i) by the substitution of the following definition for the definition of “qualifying period”:

“ ‘qualifying period’ means—

(a) for the purposes of subsection (4), the period commencing on 1 January 2023 and ending on 31 December 2023, and

(b) for the purposes of subsection (4A), the period commencing on 1 January 2024 and ending on 31 December 2024;”,

and

(ii) by the substitution of the following definition for the definition of “relievable interest”:

“ ‘relievable interest’ has the meaning given to it—

(a) by subsection (4), in the case of the year of assessment 2023, and

(b) by subsection (4A), in the case of the year of assessment 2024;”,

(b) in subsection (2), by the substitution of “a qualifying period referred to in paragraph (a) or (b), as the case may be, of the definition of that term in subsection (1)” for “the qualifying period”,

(c) in subsection (4)(a), by the substitution of “For the purposes of this section, in respect of a claim under subsection (2) for the year of assessment 2023,” for “For the purposes of this section,”,

(d) by the insertion of the following subsection after subsection (4):

“(4A) (a) For the purposes of this section, in respect of a claim under subsection (2) for the year of assessment 2024, relievable interest, in relation to an individual, shall be an amount determined by the formula—

A - B

where—

A is the amount of qualifying interest for the year of assessment 2024, and

B is the amount of qualifying interest for the year of assessment 2022.

(b) Where qualifying interest paid for a year of assessment referred to in paragraph (a) is for a period where the number of days in the years of assessment to which ‘A’ and ‘B’ in the formula in paragraph (a) relate are not the same, the amount of qualifying interest represented by ‘A’ or ‘B’, as the case may be, in the formula in paragraph (a) shall—

(i) where the number of days in the year of assessment to which ‘A’ relates is greater than the number of days in the year of assessment to which ‘B’ relates, be determined by the following formula—

A D/E

and

(ii) where the number of days in the year of assessment to which ‘B’ relates is greater than the number of days in the year of assessment to which ‘A’ relates, be determined by the following formula—

B D/E

where—

D is the number of days in the year of assessment with the lesser number of days, and

E is the number of days in the year of assessment with the greatest number of days.”,

(e) in subsection (5), by the substitution of “Where, for the year of assessment 2023” for “Where, for a year of assessment”,

(f) by the insertion of the following subsection after subsection (5):

“(5A) Where, for the year of assessment 2024, qualifying interest referred to in subsection (4A) is for a period of less than 365 days, then—

(a) where—

(i) the number of days in the year of assessment to which ‘A’ in the formula in subsection (4A) relates is less than 365 and the number of days in the year of assessment to which ‘B’ in the formula in subsection (4A) relates is equal to 365, or

(ii) the number of days in the year of assessment to which ‘B’ in the formula in subsection (4A) relates is less than 365 and the number of days in the year of assessment to which ‘A’ in the formula in subsection (4A) relates is equal to 365,

the upper limit shall be determined by the formula—

F G/H

or

(b) where the number of days in the year of assessment to which ‘A’ in the formula in subsection (4A) relates is less than 365 and the number of days in the year of assessment to which ‘B’ in the formula in subsection (4A) relates is less than 365, then, the upper limit shall be determined by the formula—

F I/J

where—

F is €6,250,

G is the number of days in the year of assessment with the lesser number of days,

H is the number of days in the year of assessment with the greater number of days,

I is the number of days in the year of assessment with the lesser number of days, and

J is 365 days.”,

(g) in subsection (7)(a), by the substitution of “a qualifying period referred to in paragraph (a) or (b), as the case may be, of the definition of that term in subsection (1)” for “the qualifying period”,

(h) in subsection (8)(a), by the substitution of “the calendar year 2023 or 2024, as the case may be,” for “the calendar year 2023”,

(i) in subsection (9)(b), by the substitution of “subsection (4) or (4A), as the case may be” for “subsection (4)”, and

(j) in subsection (11)(e), by the substitution of the following subparagraphs for subparagraphs (i) and (ii):

“(i) the qualifying interest paid by the claimant for—

(I) the year of assessment 2022,

(II) the qualifying period referred to in paragraph (a) of the definition of that term in subsection (1) to which the claim relates, or

(III) the qualifying period referred to in paragraph (b) of the definition of that term in subsection (1) to which the claim relates,

(ii) where subsection (9)(b) applies, the total qualifying interest paid by all of the individuals concerned for—

(I) the year of assessment 2022,

(II) the qualifying period referred to in paragraph (a) of the definition of that term in subsection (1) to which the claim relates, or

(III) the qualifying period referred to in paragraph (b) of the definition of that term in subsection (1) to which the claim relates, and”.

7. Amendment of section 477C of Principal Act (Help to Buy)

7. Section 477C of the Principal Act is amended—

(a) in subsection (1)—

(i) in the definition of “qualifying period”, by the substitution of “31 December 2029” for “31 December 2025”, and

(ii) in paragraph (c) of the definition of “qualifying residence”, by the deletion of “and a direct sales agreement (within the meaning of section 7 of the Act of 2021)”,

(b) in subsection (5A), by the substitution of “31 December 2029” for “31 December 2025”,

(c) in subsection (8)(b), by the substitution of “2029” for “2025”,

(d) in subsection (16)(a), in subparagraphs (ii) and (iii), by the substitution of “31 December 2029” for “31 December 2025”, and

(e) in subsection (25), by the substitution of “31 December 2029” for “31 December 2025”.

8. Amendment of section 112B of Principal Act (granting of vouchers)

8. (1) Section 112B of the Principal Act is amended—

(a) in subsection (1), by the substitution of the following definition for the definition of “qualifying incentive”:

“ ‘qualifying incentive’ means a relevant incentive that is the first, second, third, fourth or fifth relevant incentive given to an employee in a year of assessment where—

(a) in the case of a first relevant incentive, the value does not exceed €1,500,

(b) in the case of a second relevant incentive, the cumulative value of the first and second relevant incentives does not exceed €1,500,

(c) in the case of a third relevant incentive, the cumulative value of the first, second and third relevant incentives does not exceed €1,500,

(d) in the case of a fourth relevant incentive, the cumulative value of the first, second, third and fourth relevant incentives does not exceed €1,500, and

(e) in the case of a fifth relevant incentive, the cumulative value of the first, second, third, fourth and fifth relevant incentives does not exceed €1,500;”,

and

(b) by the insertion of the following subsection after subsection (2):

“(3) This section shall cease to have effect for the year of assessment 2030 and subsequent years of assessment.”.

(2) Subject to subsection (3) (inserted by subsection (1)(b)) of section 112B of the Principal Act, subsection (1)(a) applies for the year of assessment 2025 and each subsequent year of assessment.

9. Amendment of section 118 of Principal Act (benefits in kind: general charging provision)

9. (1) Section 118 of the Principal Act is amended by the substitution of the following subsection for subsection (5H):

“(5H) (a) Subsection (1) shall not apply to expense incurred by the body corporate in, or in connection with, the provision, for a director or employee, in any of its business premises, of a facility for the electric charging of vehicles, where all the employees and directors of that body corporate can avail of the facility.

(b) Subsection (1) shall not apply to expense incurred by the body corporate in, or in connection with, the provision, without any transfer of property in it, for a director or employee, of a facility for the charging of an electric vehicle at the director’s or employee’s qualifying residence, where an electric vehicle, to which section 121 or 121A, as the case may be, applies, is made available to the director or employee.

(c) In this subsection—

‘electric vehicle’ has the meaning assigned to it by section 121;

‘qualifying residence’ means a residential premises situated in the State which is occupied by a director or employee, as the case may be, as his or her sole or main residence for the year of assessment concerned.”.

(2) Subsection (1) applies for the year of assessment 2025 and each subsequent year of assessment.

10. Amendment of section 121 of Principal Act (benefit of use of car)

10. Section 121(4A) of the Principal Act is amended—

(a) in paragraph (aa)(iii), by the substitution of “subject to paragraph (ab), €35,000” for “€35,000”,

(b) in paragraph (ab)—

(i) by the substitution of “years of assessment 2023, 2024 and 2025” for “years of assessment 2023 and 2024”, and

(ii) in subparagraph (i)—

(I) by the substitution of “subparagraph (i), (ii) or (iii)” for “subparagraph (i) or (ii)”, and

(II) in clause (I), by the substitution of “subparagraph (i), (ii) or (iii)” for “subparagraph (i) or (ii)”,

and

(c) in paragraph (ba), by the substitution of “years of assessment 2023, 2024 and 2025” for “years of assessment 2023 and 2024”.

11. Amendment of section 121A of Principal Act (benefit of use of van)

11. Section 121A(2)(b) of the Principal Act is amended—

(a) in subparagraph (vii)(III), by the substitution of “subject to subparagraph (viii), €35,000” for “€35,000”,

(b) in subparagraph (viii),

(i) by the substitution of “years of assessment 2023, 2024 and 2025” for “years of assessment 2023 and 2024”, and

(ii) in clause (I)—

(I) by the substitution of “clause (I), (II) or (III)” for “clause (I) or (II)”, and

(II) in subclause (A) by the substitution of “clause (I), (II) or (III)” for “clause (I) or (II)”.

12. Employer contributions to PRSAs and PEPPs

12. The Principal Act is amended—

(a) in section 118, by the substitution of the following subsection for subsection (5):

“(5) Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee, or for the director’s or employee’s spouse, civil partner, children or dependants, or for the children of the director’s or employee’s civil partner, of any—

(a) pension, annuity, lump sum or gratuity,

(b) contribution to a Personal Retirement Savings Account (within the meaning of Chapter 2A of Part 30), provided that contribution does not exceed the employer limit (within the meaning of section 787A),

(c) contribution to a PEPP (within the meaning of Chapter 2D of Part 30), provided that contribution does not exceed the employer limit (within the meaning of section 787V), or

(d) other like benefit to be given on the death or retirement of the director or employee.”,

(b) in section 787A(1), by the insertion of the following definitions:

“ ‘emoluments’ has the same meaning as in Chapter 4 of Part 42;

‘employer limit’, in relation to a contribution by an employer to an employee’s PRSA, means an amount not exceeding—

(a) 100 per cent of the employee’s emoluments in the year of assessment from that employer, or

(b) where the employee’s emoluments for the year of assessment from that employer are lower than that employee’s emoluments for the previous year of assessment from that employer by virtue of—

(i) receipt of a benefit paid under the Social Welfare Consolidation Act 2005 to which section 126 applies,

(ii) a period of unpaid leave approved by the employer, or

(iii) a period of sick leave at a reduced rate of emoluments or in respect of which no emoluments are paid by the employer,

100 per cent of the employee’s emoluments from that employer in the previous year of assessment;”,

(c) in section 787E, by the insertion of the following subsection after subsection (1):

“(1A) Where an employer makes a contribution to an employee’s PRSA and the total of such contributions exceeds the employer limit, the sum of those contributions made, less the employer limit, shall be chargeable to tax as income of the employee, in accordance with section 118(1).”,

(d) in section 787J—

(i) in subsection (2), by the substitution of “Subject to subsections (2A) and (3)” for “Subject to subsection (3)”, and

(ii) by the insertion of the following subsection after subsection (2):

“(2A) Subsection (2) shall not apply to that portion of an employer’s contributions to an employee’s PRSA that exceeds the employer limit for that employee.”,

(e) in section 787V(1), by the insertion of the following definitions:

“ ‘emoluments’ has the same meaning as in Chapter 4 of Part 42;

‘employer limit’, in relation to a contribution by an employer to an employee’s PEPP, means an amount not exceeding—

(a) 100 per cent of the employee’s emoluments in the year of assessment from that employer, or

(b) where the employee’s emoluments for the year of assessment from that employer are lower than that employee’s emoluments for the previous year of assessment from that employer by virtue of—

(i) receipt of a benefit paid under the Social Welfare Consolidation Act 2005 to which section 126 applies,

(ii) a period of unpaid leave approved by the employer, or

(iii) a period of sick leave at a reduced rate of emoluments or in respect of which no emoluments are paid by the employer,

100 per cent of the employee’s emoluments in the previous year of assessment from that employer;”,