Finance Act 2024

• Jurisdiction: Ireland
• Year: 2024
• Citation: IR No. 43/2024

Finance Act 2024

2024 43

An Act to provide for the imposition, repeal, remission, alteration and regulation of taxation, of stamp duties and of duties relating to excise and otherwise to make further provision in connection with finance; to make provision for supports to employers and certain businesses and for that purpose to amend the Taxes Consolidation Act 1997, the Social Welfare Consolidation Act 2005, the Value-Added Tax Consolidation Act 2010 and Part 7 of the Emergency Measures in the Public Interest (Covid-19) Act 2020; and to provide for related matters.

[12 November 2024]

Be it enacted by the Oireachtas as follows:

1 Interpretation (Part 1)

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

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

(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.

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)

(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...