Irish Taxpayers Could See Income Boost in Election Budget Set for October 1
Dublin: Ahead of the Irish Budget 2025 presentation by Finance Minister Jack Chambers on October 1, preliminary reports suggest potential benefits for taxpayers. The budget is expected to introduce several changes, potentially offering additional financial relief.
1. Inheritance Tax: The exemption threshold for capital acquisition tax is anticipated to increase from €335,000 to €400,000, reflecting the rise in property values since 2013.
2. Rent Tax Credit: The tax credit for tenants, which rose from €500 to €750 last year, is likely to increase to €1,000.
3. Energy Credit: An additional energy credit is expected for the fourth quarter of the year, though this may mark the end of such subsidies as the energy crisis subsides.
4. Tax Bands: Adjustments to income tax bands are anticipated to keep pace with rising wages, with potential increases in the thresholds for the 20% and 40% tax rates.
5. USC: A reduction in the Universal Social Charge (USC) is expected, following last year’s cut from 4.5% to 4%.
6. Minimum Wage: An increase in the minimum wage to €13.70 is recommended by the Low Wage Commission, though this may be subject to change.
7. Social Welfare: A €12 increase in weekly payments for pensioners, carers, and individuals with disabilities is anticipated. Additionally, a double Child Payment before Christmas is expected.
8. Help to Buy Scheme: The scheme for first-time buyers may see an increased property value ceiling from €500,000, and potential expansions, though this is under review by consultants Mazars, who have noted some inefficiencies in the current program.
These potential changes reflect the government’s efforts to enhance benefits in an election year.
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