Do you have a question about this year’s budget? Dominic Coyle of The Irish Times and Beryl Power from PwC are today answering readers’ questions in our post-budget live blog. Submit your questions now using the form below.
Tax
From Mary McCarthy
Q: My husband and I both pay 42 per cent tax. We own our home and have no children. We both pay USC. What is there for us in the budget?
A: Well, you will benefit from the widening of the standard (20 per cent) income tax band by €2,000 to €44,000 if you are taxed as single people. If taxed as a couple, the 20 per cent band for the higher earner rises by €2,000 to €53,000, with the 20 per cent widening to €35,000 for the lower earner – again a €2,000 increase.
The widening of the 2 per cent band of Universal Social Charge by €1,622 to €27,382 will also benefit you as will the €125 per person increase in both the personal tax credit and either the employee or the earned income tax credit. All those credits will now be worth €2,000 apiece, up from €1,875. – DC
Childcare
From Jean
Q: What does the €1100 reduction to childcare costs actually mean? Are the fees set to come down again?
A: As of now, you are subsidised by €2.14 an hour for up to 45 hours a week under the universal (non means tested) childcare subsidy. That figure will rise by 47 cent to €2.61 an hour. The increase will also apply to the Income Assessed (means tested) subsidy. – DC
Business
From Michael McDowell
Q: Any changes to Employment Investment Incentive Scheme for angel investors and startups?
A: The angel investor capital gains tax relief, which is targeted at encouraging business angel investment in innovative start-ups, was announced in Budget 2024, and will commence shortly.
It is proposed to increase the lifetime limit on gains, on which the reduced rate of capital gains tax applies, from €3 million to €10 million. – BP
Tax
From Sean Brennan
Q: Will the cap on the transfer of family business of €10 million be scrapped or deferred?
A: The commentary in the budget is a little unclear, but my reading is that the €10 million cap that was introduced in Budget 2024 will be replaced with a requirement that the beneficiary must keep the business assets for 12 years. We will need to see the detail in the Finance Bill to be able to confirm the position. – BP
Tax
From Jean Carmena
Q: Will inheritance tax threshold increase apply to estates currently in probate?
A: No, the new rates come into force only for estates of people who die from today onwards – October 2nd. – DC
Tax
From Deborah Ryan
Q: Any changes to Inheritance Tax?
A: Yes, some good news on the thresholds! The group A threshold which generally applies to gifts and inheritances to children has been increased from €335,000 to €400,000. The group B threshold (which applies to close relatives) has been increased to €40,000 (from €32,500) and the group C threshold has been increased to €20,000 (from €16,250). These changes come into effect for gifts and inheritance from October 2nd. – BP
Housing
From Gearóid Dardis
Q: Are self-employed people able to avail of the Renters Tax Credit?
A: Yes, anyone who is renting should be able to avail of the Rent Tax Credit. This credit is being increased by €250 to €1,000 for a single person or €2,000 in the case of a married couple who are jointly assessed. The increase applies to 2024 and 2025. – BP
Good morning and welcome to our Budget 2025 Q+A.
Yesterday’s budget, with an election around the corner and a recent boon in tax receipts, was billed as the biggest bonanza budget in the history of the State, and in some respects, it has lived up to that billing.
Here we are going to dig down into the detail of what it all means for you with Dominic Coyle of The Irish Times and Beryl Power from PwC.
