CMCC Financial Services : Budget 2025 Summary

Minister for Finance Jack Chambers and Minister for Public Expenditure Paschal Donohoe have announced the Budget for 2025, with a raft of measures aimed at putting the country on a "firm footing for the future".
by CMCC Financial Solutions Ltd
03 Oct 2024
CMCC Financial Solutions Ltd
Suite 30, The Mall
Beacon Court
Sandyford Business Park
D18 A6Y0

A summary of the key announcements include: 

Social Welfare

  • Double payments for some social welfare recipients in October
  • €12 increase for those receiving a weekly Social Protection payment
  • Carer's allowance means test disregard to increase to €625 for a single person and €1,250 for a couple
  • Domiciliary care allowance to increase by €20 and carer's support grant to rise by €150 to €2,000

Cost of Living Measures

  • Energy credit of €250 for all households to be paid in two equal payments, one before the end of 2024 and one after
  • Proposal for the 9% reduced VAT rate for gas and electricity to be extended for another six months to 30 April 2025
  • Further €300 lump sum payment to fuel allowance recipients in November
  • Additional €200 for recipients of the living alone allowance

Education & Children

  • Free schoolbooks initiative extended to transition and senior cycle pupils
  • Funding to continue for the school transport fee reduction and State exam fee waiver
  • Continued reduction of student contribution fee by €1,000
  • Once-off reduction of 33% in contribution fee for apprentices in higher education
  • Post-graduate tuition fee contribution increase of €1,000 for student grant recipients
  • Double payments of child benefit in November and December
  • Double payment of the foster care allowance
  • €400 lump sum payment for working family payment recipients
  • €100 lump sum payment per child to recipients of qualified child increase payments
  • New 'baby boost' one-off payment of €420 for each newborn child from 1 January

Housing

  • The rent tax credit offered to tenants will rise from €750 to €1,000, and to €2,000 for a jointly assessed couple
  • An additional €1.25bn will be made available to the Land Development Agency, bringing the total amount of funding for the LDA to €6.25bn
  • Help to Buy scheme will be extended until the end of 2029
  • Properties worth over €1.5m to pay 6% stamp duty
  • Existing 1% stamp duty to apply to values up to €1m and 2% above €1m
  • Relief for pre-letting expenses for landlords extended for three years until the end of 2027 to help vacant property owners bring accommodation into the rental system
  • Vacant homes tax increased from five to seven times the property's existing base Local Property Tax rate

Taxation

  • The USC will be cut from 4% to 3% on incomes of €25,000 to €70,000, the second consecutive reduction to the USC rate
  • The national minimum wage will increase by 80 cent to €13.50 per hour from 1 January 2025
  • Entry threshold to 3% rate increased by €1,622 to €27,382
  • The main tax credits - the Personal, Employee and Earned Income Credits - will increase by €125
  • The Standard Rate Cut Off Point will increase by €2,000 to €44,000, with proportionate increases for married couples and civil partners
  • Inheritance tax will increase for all thresholds - Group A up from €335,000 to €400,000, Group B up to €40,000 and Group C up to €20,000
  • Exemption from Income Tax, Capital Gains Tax and Capital Acquisitions Tax on payments made to women impacted by Cervical Check failures

Inheritance Tax

  • The Group A threshold for CAT - which includes gifts or inheritance from parents to their children - will rise from €335,000 to €400,000
  • The Group B threshold - which includes gifts or inheritances from siblings - will rise from €32,500 to €40,000
  • The Group C threshold - which includes gifts and inheritances from relatives like uncles, aunts or cousins - will rise from €16,250 to €20,000

Supplied by Conor Murray - CMCC Financial Servies

More News