Tax News

Landlord’s Tax Relief Ireland, Residential Premises Rental Income Relief, RPRIR

Are you an individual landlord of rented residential property in Ireland?

If so, this nine page Revenue guidance material published today may be of interest to you, especially if you are a non-resident landlord.  In general, non-resident individuals are not entitled to any personal tax credits, reliefs and/or deductions. Section 1032 TCA 1997, however, provides that in certain circumstances, a portion of the credits, reliefs or deductions may be available, which is calculated by the ratio the Irish source income bears to the individual’s total income.

Are there any scenarios in which a clawback of the Relief may arise?

Section 4 of this Revenue guidance manual sets out the circumstances in which a clawback will arise:

The relief will be reclaimed in the following situations:

1. If the landlord ceases to be a landlord of a qualifying premises within four years of the first year in which relief is claimed. This may arise because the residential rental property is sold or gifted or because the landlord has removed it from the rental market

2. If the property is not rented to a tenant and is not actively listed for rent.

3. If the property’s use changes from a residential letting to say, a holiday home or a short-term letting.

4. If the property is rented to a connected person or a relative.

Important points to keep in mind:

• In circumstances where the landlord no longer qualifies for the RPRIR, a Revenue officer will amend the assessment for each year of assessment where the relief was claimed.

• The tax clawed back will not exceed the amount of relief actually claimed.

• The relief will not be clawed back in circumstances where the landlord dies during a year of assessment.

For further information, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-03-04.pdf

If you are a landlord of rented residential property in Ireland seeking comprehensive tax advice or looking to regularise your tax affairs, and wish to deal with a Property Taxes Specialist please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Tax Credits. Budget 2026 Ireland. Income Tax. Personal Taxes. Tax Reliefs

Budget 2026 introduced a wide range of updates across Ireland’s tax system. The following Tax Credits and Reliefs are being extended:

1. The Rent Tax Credit is being extended for a further three years.  It is due to expire at the end of 2028.

For further information, please click link: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-credit/index.aspx

2. The income tax deduction for landlords retrofitting properties is extended for another three years.  It is available for works carried out up to 31st December 2028.

For further information, please click link: https://www.revenue.ie/en/property/rental-income/deduction-for-retrofitting-expenditure/index.aspx

3. The Income Tax Exemption for households which sell electricity from micro-generation back to the grid is extended for a further three years to 31st December 2028.

For further information, please click link: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-44.pdf

4. The Mortgage Interest Tax Relief is being extended for a further two years. Relief will be available at the standard Income Tax rate, with the maximum 2025 relief capped at €1,250 per property and €625 per property for 2026.

For further information, please click link: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/mortgage/index.aspx

5. The USC Concession for medical card holders will be extended until 31st December 2027.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

6. The €5,000 Vehicle Registration Tax (VRT) Relief for new electric vehicles is extended until 31st December 2026.

For further information, please click link: https://www.gov.ie/en/department-of-finance/speeches/statement-by-minister-donohoe-on-budget-2026/

7. Employee Benefit-in-Kind Relief for employer provided vehicles (for cars in categories A-D and to all vans) is to be extended, on a tapered basis, until the end of 2028.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

8. Special Assignee Relief Programme (SARP) has been extended by 5 years to 2030.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

9. Key Employee Engagement Programme (KEEP) has been extended to 31st December 2028 subject to approval from the European Commission.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

10.Foreign Earnings Deduction (FED) has been extended by 5 years to 2030.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

Accounts Advice Centre provides a top tier level service for all personal income tax matters, from filing tax returns to offering specialist advice on complex taxation issues. We have over thirty years experience providing expert tax advice, tailored for individuals and their families. For a full professional taxation advice and compliance service, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Income Tax Return Deadline. ROS Pay and file. Form 11 Personal Tax Returns

Revenue eBrief No. 156/25 was published on 7th August 2025.

Tax and Duty Manual Part 38-06-01a has been updated to contain the following:

• A link to access further information on Revenue’s new agent eLinking facility is provided in paragraph 6.5.1.
• Paragraph 7.1.2 states that payments via Commercial Debit Cards will no longer be accepted from 1st September 2025.
• Paragraph 8.8 provides some information as well as a link to access further details ion the Residential Premises Rental Income Relief (RPRIR).
• Paragraph 8.9 provides information as well as a link to further details is provided on the Retrofitting Rental Properties Relief (RRPR).

If an individual was tax compliant as at 31st December 2024, they can claim the RPRIR for 2024 provided:

• the individual holds a Tax Clearance Certificate at the time their 2024 income tax return is filed and
• the other conditions required to claim the relief are satisfied.

For further information, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-38/38-06-01a.pdf

If you require assistance filing your Form 11 Income Tax Return, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

US Taxes, USA Business Tax provisions, One Big Beautiful Bill

On 4^th July 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law.  It introduced several updates to federal informational reporting requirements.

1099-MISC and 1099-NEC

• It significantly raises the reporting threshold for payments made on Forms 1099-NEC and 1099-MISC.

• From 1^st January 2026, businesses will only be required to file a 1099 if their non-employee or miscellaneous income exceeds the threshold amount of $2,000.

• For those individuals working on a freelance or independent contractor/consultancy basis, it’s important to remember that you must report earnings, on your Form 1099-NEC, which have not been reported on form W-2.

• For consultants/contractors/freelancers is also important to keep in mind that while your clients won’t be sending you a 1099-NEC in relation to payments of under $2,000, you’re still responsible for reporting that income in your tax return.  For the client, however, it means that if they pay a contractor/consultant/freelancer less than $2,000 in a calendar year, the general rule is that they won’t be required to issue a Form 1099-NEC.

100% Bonus Depreciation

The One Big Beautiful Bill permanently restores the 100% bonus depreciation for qualifying business property placed in service, on/after 19^th January 2025.  Please be aware, however, if your business had a contract to acquire property prior to 20^th January 2025, the property will not qualify for the 100% bonus, even in situations where the actual acquisition happens after that date.

What is “Bonus Depreciation”?

It’s an additional first-year depreciation to incentivise businesses to invest in qualifying property.  

What does “placed in service” mean?

It means that the asset must be ready and available for its intended business use. For clarity, if you have purchased or financed equipment but it’s not ready and available for the intended business use, then it will not trigger the allowable deduction.

How is “qualifying property” defined?

Qualifying property includes property used in a trade or business or for the production of income and meets the following criteria:

• It must be tangible.

• It must be depreciable under the Modified Accelerated Cost Recovery System (MACRS)

• It must have a recovery period of 20 years or less.

• It must be placed in service after 19^th January 2025

• It can be purchased new or second hand.

• It includes computer systems, equipment, furniture, machinery, certain vehicles, etc.

• The phase-down percentages still apply to some assets, including property that was acquired on/before 19^th January 2025, even if it wasn’t placed in service until after that date.

• The Bonus Depreciation is not limited by taxable income.  Therefore, it can create or increase a net operating loss.

Enhanced Section 179 Deduction Limits

As you’re already aware, under Section 179 businesses can deduct the full purchase price of “qualifying property” during the tax year as opposed to capitalizing the expenses and depreciating them over several years. The new legislation introduced on 4^th July 2025, gives a major boost to the Section 179 deduction.  Under the previous limits for the 2025 tax year, businesses could only expense up to $1.25 million in qualifying property using Section 179.  Beginning in 2025 tax year, the increased deduction limit for certain depreciable business assets has doubled to $2.5 million.

With regard to the Higher Phase-Out Threshold, the deduction starts to phase out for total qualifying property costs over $4 million.  The previous limit was $3.13 million.

In summary, businesses can now deduct up to $2.5 million until their equipment purchases exceed $4 million.  Once purchases reach $6.5 million, the deduction phases out completely.

The OBBBA enhances section 179 expensing for tax years starting after 31^st December 2024.  This means that the changes will apply retroactively to qualifying property placed in service on or after 1^st January 2025.

What’s the difference between Bonus Depreciation and Section 179?

While you may think the 100% bonus depreciation is similar to a Section 179 deduction, you must keep in mind that Section 179 only allows eligible purchases up to $2.5 million to be fully expensed (with a phase-out once purchases exceed $4 million) while there is no dollar limit on the Bonus Depreciation.

For further information, please click: https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions

If you are seeking a comprehensive and professional U.S. tax advisory of compliance service from U.S. Tax Specialists, including U.S. tax filing, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Inheritance Tax (IHT), UK Taxes, Capital Acquisitions Tax.

The 2024 Autumn Budget announced a series of changes to UK Inheritance Tax.  As you’re aware, in the UK, Inheritance Tax is a tax payable on the value of a deceased person’s estate.  This differs to Irish Capital Acquisitions Tax where the beneficiary pays CAT on gifts and/or inheritances.

Current Rules

Currently, UK IHT is charged at 40% on the value of an estate above the tax-free allowance i.e. the Nil Rate Band of £325,000. This tax-free allowance can be further increased by a Residential Nil Rate Band of £175,000 providing you leave your home to direct descendants i.e. children, step children, grandchildren, etc.  As a result, this brings up the total tax-free allowance to £500,000 per person.  In certain circumstances, this could potentially equate to £1 million for a couple.  These thresholds were fixed until April 2030 in the Autumn Budget.  If, however, your estate is worth less than £325,000 when you die, then any unused amount up to the threshold limit can be added to the surviving spouse’s/partner’s threshold amount.

New Rules

From 6^th April 2025, the rules for taxing non-UK domiciled individuals will be replaced by a tax residence-based system.  This will apply to long-term residents owning non-UK property who were previously outside the scope of UK Inheritance Tax.  UK assets will always remain within the scope of inheritance tax.  Therefore, from 6th April 2025 onwards, individuals who have held non-domicile status will no longer be exempt from Inheritance Tax on their foreign assets. Instead tax will be based on the individual’s residency status.

Non-UK assets will be within the scope of UK Inheritance tax if an individual qualifies as a long-term resident.  This means that anyone who has been resident in the UK for ten out of the last twenty years will be subject to Inheritance Tax on their worldwide assets.  This is assessed using the same statutory residence test currently applied for Income Tax and Capital Gains Tax purposes.  It’s important to keep in mind that where an individual ceases to be UK resident after 6th April 2025, there will be an “IHT tail.”  This effectively means that an individual can remain within the scope of UK Inheritance Tax, on their worldwide assets, for a period of up to ten years after ceasing their UK residence.

In summary, from 6th April 2025, the concept of domicile will no longer determine exposure to inheritance tax.  Instead, it will be replaced with the concept of a long-term resident.

For further information, please click:

https://www.gov.uk/inheritance-tax

https://www.gov.uk/government/publications/2024-non-uk-domiciled-individuals-policy-summary/changes-to-the-taxation-of-non-uk-domiciled-individuals

For all your Irish or cross-border gift or inheritance concerns, please contact us on queries@accountsadvicecentre.ie.

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Inheritance Tax, UK IHT, UK Taxes, Agricultural Property Relief, Business Property Relief, Gift and Inheritance Tax

The UK Autumn Budget 2024 announced changes to the current Agricultural and Business Property Inheritance Tax regimes.  From 6^th April 2026, the combined Agricultural Property Relief and Business Property Relief will be restricted to the first £1 million on “qualifying assets.”  The Chancellor of the Exchequer delivered her Budget on 30th October 2024, announcing 100% relief for the first £1 million pounds of combined assets and 50% Relief thereafter.  Currently, Agricultural Relief offers two potential rates of Inheritance Tax Relief.  These depend on the circumstances of ownership. These rates will remain in place until 5^th April 2026.

Old Regime – Agricultural Property Relief

What is Agricultural Property Relief?

Agricultural Property Relief is an Inheritance tax relief for farmers and landowners.  It provides for either 50% or 100% relief on the agricultural value of land and certain buildings.

What conditions must apply?

For the 100% Relief to apply:

1. the property must be in the owner’s vacant possession i.e. the owner or transferor has the immediate right to vacant possession of the property or the right to obtain it within the next twelve months.

2. the land must be let with the tenancy having commenced on/after 1st September 1995.

3. the land must be let and conditions regarding vacant possession must be complied with – This applies by concession.

4. the owner had been entitled to his interest in the property since before 10th March 1981 and has met the conditions for ‘Working Farmer Relief”.

What happens if all the above conditions aren’t met?

The 50% Relief is available in circumstances where the above conditions aren’t met.

What happens if the property is owner-occupied?

If the property is owner-occupied, it must have been owned and used for agricultural purposes for at least two years ending with the date of the transfer.  If, however, the property is let to a tenant, it must have been owned by the transferor for at least seven years, ending with the date of the transfer, and the land must have been actively farmed during that time.  The property must not be subject to a binding contract of sale on disposal.

What about successive transfers?

Additional rules apply in relation to successive transfers.

What does Agricultural Property include?

Agricultural property includes agricultural land or pasture, grazing land, cottages, farmhouses, farm buildings, woodlands and buildings used in intensive animal rearing, etc.

Old Regime – Business Property Relief

What is Business Property Relief?

Business Property Relief is a relief from IHT which applies to the transfer of relevant business property.  100% relief is available on the following assets (i) a business or interest in a business operating as a sole trade or partnership and (ii) shares in an unlisted trading company which the donor has owned for a minimum of two years

Are there specific rules on the transfer of shares in a quoted trading company?

50% Relief is available on the transfer of shares in a quoted trading company where the donor has a controlling interest (i.e. 51%) in the company.  The 50% rate also applies to land and buildings, including plant and machinery, where those assets are used by the donor’s partnership or by a company they control.

What about lifetime gifts?

With regard to lifetime gifts, Business Property Relief is only available on death provided the donee still owns the relevant business property at the time of death.

What if the business owns investments?

If the business owns investments, Business Property Relief is restricted to the business assets. In other words, BPR does not apply to any ‘excepted assets’ in the balance sheet. An ‘excepted asset’ is one which is not used wholly or mainly for the purposes of a trade.

New Regime

From 6^th April 2026, the combined Agricultural Property Relief and Business Property Relief will only be available on the first £1 million on qualifying assets. If the individual owns qualifying assets above this threshold amount of £1 million, the rate of the Relief will be reduced to 50% of the excess.

What does that mean?

This means, from 6^th April 2026, an effective IHT tax rate of 20% will apply to the value of qualifying assets above £1 million.

What happens Assets that automatically qualify for the 50% Relief Rate?

Assets automatically qualifying for the 50% relief rate will not use up the £1 million allowance.

What happens to any unused part of the £1 million allowance?

It’s important to keep in mind that any unused part of the £1 million allowance cannot be transferred between spouses in the way that the NIL Rate Band can.

What does this allowance not apply to?

This allowance will not apply to AIM-listed shares and other similar shares not listed on a recognised stock exchange.  Instead, they will be entitled to the 50% rate of Relief.

How long do the new rules apply?

The new rules will apply for lifetime transfers on/after 30th October 2024 in situations where the donor dies on/after 6^th April 2026.

How can this Inheritance Tax liability be paid?

The Inheritance Tax liability arising on assets which qualify for Agricultural Property Relief and Business Property Relief can be paid by way of equal annual instalments, over a ten-year period, in certain circumstances.

Are there any exemptions?

Full exemptions for transfers between spouses and civil partners will continue to apply i.e.  any agricultural and business assets left to a surviving spouse or civil partner will be tax free.

For further information, please click:

https://www.gov.uk/government/publications/agricultural-property-relief-and-environmental-land-management

https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief

Following the Inheritance Tax changes in the Autumn Budget 2024, it’s time to consider the practical consequences and what you can do to protect your family wealth.  For expert UK Tax advice and assistance, please contact us on queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Income Tax Returns, Corporation Tax Returns, Level 1 Compliance Intervention, Revenue Non-Filer

As part of the Irish Revenue Commissioners’ Annual Non-Filer Programme, Notices will be sent to taxpayers who are currently registered for Income Tax or Corporation Tax but who have not filed Income Tax or Corporation Tax Returns for tax years up to and including 2023.  Tax Agents will receive a ROS Inbox Notification on 31^st January 2025 providing them with a list of clients who have been issued with a Reminder to File Notice.  Please be aware that this notice is what is deemed to be a Level 1 Compliance Intervention.

If you have received a Notice but you are no longer considered to be a “Chargeable Person”, the advice is to cancel your Income Tax or Corporation Tax registration as soon as possible.

For full information on who is deemed to be a “Chargeable Person” please click:

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-41a/41a-01-01.pdf

According to Revenue’s “Reminder to file – Income Tax Return” Notice:

“This notice is a Level 1 Compliance Intervention in accordance with Revenue’s Compliance Intervention Framework. The non-filing of a required tax return by chargeable persons can result in a penalty charge and a more detailed review by Revenue. It is also an offence for which a person can be prosecuted. Further information on your rights and obligations under Revenue’s Compliance Intervention Framework can be found on www.revenue.ie.

In addition, if the tax return(s) is not filed it may lead to the loss or refusal of tax clearance.”

According to Revenue’s “Reminder to file – Corporation Tax Return” Notice:

This notice is a Level 1 Compliance Intervention in accordance with Revenue’s Compliance Intervention Framework. The non-filing of a required tax return can result in a more detailed review by Revenue. It is also an offence for which a person can be prosecuted. It can also result in the restriction of certain reliefs, and the loss or refusal of tax clearance. Further information on your rights and obligations under Revenue’s Compliance Intervention Framework can be found on www.revenue.ie.

For further information, please click:

https://www.revenue.ie/en/tax-professionals/tdm-wm/compliance/returnscompliance/it-and-ct-returnscompliance/income-tax-and-corporation-tax-non-filer-programme.pdf

If you receive a Level 1 Notification and you are required to file Tax Returns for outstanding years, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Auto-enrolment Pension Scheme. Payroll. Retirement Pension. No Income Tax Relief. Employers, Employees and Directors

Today, 7^th October 2024, the Minister for Social Protection announced that the pensions auto-enrolment scheme will commence on 30^th September 2025. From that date, employers must automatically enroll eligible workers into a workplace pension scheme, as part of a Government initiative, aimed at boosting retirement savings.

Who is it for?

This government retirement savings system is for employees who are not already contributing into a pension scheme through their payroll. The Automatic Enrolment Retirement Savings Systems Act 2024 was signed into law on 9^th July of 2024 and a commencement order was signed on 30^th September 2024.  This scheme involves mandatory employer and employee making contributions into a pension fund, in addition to a Government top up.  As a result, with this new auto-enrolment scheme, most workers will now be entitled to:

(i) their own pension plus

(ii) the State Pension on retirement.

What is the Pensions Auto-Enrolment Scheme?

Under this new Act, the following apply:

• Employees will be automatically enrolled in this scheme if they are aged between 23 and 60 years. It’s important to keep in mind, however, that the employee can voluntarily opt out after six months.

• This auto-enrolment scheme will apply to every private sector worker in Ireland.  This is provided that the employee is not in what is termed “exempt employment.”

• The employee must earn more than €20,000 gross per year. For this purposes, gross pay includes allowances as well as non cash benefits.

• For employees earning less than €20,000 per year or who are outside the prescribed age range, they can opt in voluntarily.

• Contributions will be made by (i) the employee, (ii) the employer and (iii) the Government.

• The scheme will be managed by the National Automatic Enrolment Retirement Savings Authority.  This is under the supervision of the Pensions Authority.

• In situations where an employee previously contributed to a pension but has since stopped, that individual can be enrolled in the scheme.  This is provided they meet the relevant criteria.

• Employer AE contributions will not be taxed as a benefit-in-kind on the employee.

What is an “exempt employment”?

The scheme is aimed at employees who are not paying into a qualifying pension plan.  Therefore, an ‘exempt employment’ is deemed to be one where an employee or employer is already making contributions, through the payroll system, to any of the following:

(a) an occupational pension scheme,

(b) Personal Retirement Savings Account,

(c) a Retirement Annuity Contract or

(d) a Pan-European Personal Pension Product.

What are the Auto-enrolment contribution rates?

1. Contributions to the auto-enrolment pension scheme will be based on a set percentage of your wage/salary and deducted through payroll.

2. Employers must match their employee contributions.

3. The Government must match one third of the employee contribution.

 4. The Contributions will gradually increase over a ten year period.

5. The employee contributions will not qualify for income tax relief.

6. Contributions are capped at €80,000 of an employee’s gross annual salary/wage.  In other words, an upper annual limit of €80,000 applies to earnings.  No contributions are required on earnings exceeding this cap.  Employees earning more than €80,000 per annum can still contribute.  However, employer and Government contributions will not apply to earnings above €80,000.

Final Points

• As the Auto-Enrolment Pension Scheme operates throughout your career, you don’t have to do anything if you move jobs.

• In the event of the death of an auto-enrolled employee, their personal representative can apply to access the balance in the employee’s account, as part of their estate.

• An employee can suspend their contributions at any time.

• Directors who are deemed to be “self-employed” for PRSI purposes are not considered eligible to contribute to this Auto-Enrolment Pension Scheme.

• The Automatic Enrolment Retirement Savings Systems Act 2024 provides for a number of offences.  These sanctions range from fines of €5,000 to €50,000 and/or imprisonment, depending on the particular offence committed.

For further information, please click:

https://www.gov.ie/en/publication/c6d6a-auto-enrolment-your-questions-answered/?referrer=https://www.gov.ie/en/publication/01568-auto-enrolment-your-questions-answered-rol-draft/

https://www.irishstatutebook.ie/eli/2024/act/20/enacted/en/html

https://www.youtube.com/playlist?list=PLfOMyQE5RqGzeqOMKqB1M3KyOCtKU8bjk

With over thirty years of experience, Accounts Advice Centre specializes in delivering reliable and tailored payroll services to a wide range of clients.  This ranges from sole employers to large organisations. Our focus is on tax compliance while ensuring we meet the needs of each and every business, individual, employer and employee.  If you would like to discuss our payroll services, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Business Tax Advice. Corporation Tax. Research & Development (R&D), Capital Gains Tax (CGT)

The Minister for Finance Jack Chambers published his first Budget today  announcing a number of changes to our corporate tax regime.  As a result, a raft of tax measures and policies will be introduced to support Irish start-ups, small and medium-sized enterprises (SMEs) and multinational businesses.  Budget 2025 provided for a total budget package of €10.5b.  Our focus in this article, however, is purely on Business Taxes under Capital Gains Tax, Corporation Tax, VAT and Employer/Employee Taxes.

So, what are the Tax changes introduced?

Here is a summary of the Tax Measures under VAT, payroll taxes, CGT and Corporation Tax:

VAT Changes

1. VAT registration thresholds

2. Extension of the temporary 9% VAT rate in relation to supplies of gas and electricity for an additional six months.

3. Increase in the farmer’s flat rate addition from 1^st January 2025.

4. Introduction of a new 9% VAT rate on heat pumps.

Payroll Changes

5. Amendments to the Benefit-in-Kind (BIK) on cars

6. Increase in the annual employee Small Benefit Exemption from €1,000 to €1,500. A business will also be able to give five non-cash benefits to their employees in a single year.

Capital Gains Tax Changes

7. Amendments to Retirement Relief.

8. Amendment to Relief for Angel Investors.

Corporation Tax Changes

9. Corporation Tax Changes in relation to EII, SURE and SCI

10. Participation Exemption – Exemption for companies in receipt of Foreign Dividends

Let’s start with VAT.  

• With effect from 1^st January 2025, the VAT registration thresholds will be increased from €40,000 to €42,500 for services.

• The VAT registration thresholds will be increased from €80,000 to €85,000 for goods with effect from 1^st January 2025.

• The unregistered farmers flat rate scheme will be increased from 4.8% to 5.1%.

• There will be an extension of the reduced 9% VAT rate on electricity and gas up to 30^th April 2025.

• From 1^st January 2025, the 9% VAT rate will also apply to heat pump installations. This will have the effect of reducing the cost of replacing inefficient boilers.

Next, the EMPLOYER / EMPLOYEE TAX changes:

SMALL BENEFIT EXEMPTION

• There will be an increase in the annual limit of the small benefit exemption from €1,000 to €1,500.

• It has also been amended to allow five non-cash benefits, up from two, to be granted by an employer in a single year. The cumulative total of the first five benefits in a calendar year cannot exceed €1,500.

• From 1^st January 2024 an employer is required to return details of all qualifying incentives provided to employees where the small benefit exemption applies.

• This benefit can be given to any employee of the company, including directors and shareholders, providing they are on the payroll.

BENFIT-IN-KIND

• Budget 2025 introduced a BIK exemption for home car chargers provided by employers. It provides for an exemption from Benefit-in-Kind where it is the employer who incurs the cost of providing a facility for electric charging of vehicles at the home of an employee or director.

• There is a deferral of the proposed tapering of Benefit-in-Kind Relief for electric vehicles. The universal relief of €10,000 which applied to the Original Market Value of a vehicle in Category A – D is being extended to 31^st December 2025.  The amendment to the lower limit of the highest mileage band has also been extended until 31^st December 2025.   Therefore, the highest mileage band is entered into at 48,001km.

Here are some CAPITAL GAINS TAX changes:

RETIREMENT RELIEF

Retirement Relief (CGT) supports the cost effective / tax efficient transfer of businesses and farms from one generation to the next.

Finance Act 2023 introduced a number of amendments to the Retirement Relief regime which included:

1. an increase in the upper age limit from 66 years old to 70 years old.

2. A cap of €10 million of proceeds / market value where the individual disposing of the assets to a child is aged from 55 to 69 years.

3. The current limit of €3million will continue to apply but only from age seventy.

When do these changes come into effect?

These changes were to come into effect on 1^st January 2025.

What about the upper age limit?

Budget 2025 will retain the increased upper age limit.

What about a clawback period?

It also introduced a clawback period of twelve years on the Relief.

What does that mean?

This means that any tax arising due to the cap of €10 million will be abated provided the assets are retained for twelve years.

To clarify:

In other words, the €10 million cap, due to be introduced on 1^st January 2025, will only apply in circumstances where the child disposes of the assets within twelve years.

ANGEL INVESTOR RELIEF

Angel Investor Relief, introduced in Budget 2024.  It was aimed at encouraging business angel investment in innovative start-ups.

Finance Act 2023 introduced a reduction on this rate for angel investors, bringing it down from 33% to 16% or 18%.

What changes did Budget 2025 bring about?

Budget 2025 provides:

(a) Capital Gains Tax Relief for a third party individual

(b) who takes a significant minority shareholding (i.e. between 5% and 49% of the ordinary issued share capital of the company)

(c) for a period of at least three years,

(d) in a certified innovative start-up small and medium enterprise (SME) company

(e) which is less than seven years old.

What form must the investment take?

The investment by the individual must be in the form of:

(a) fully paid-up newly issued shares

(b) costing at least €20,000 or €10,000

(c) if acquiring between 5% and 49% of the ordinary issued share capital of the company.

What are the effective reduced CGT rates?

• Qualifying investors will be able to avail of an effective reduced rate of CGT of 16%, or

• 18% if through a partnership,

• on a gain up to twice the value of their initial investment.

What about lifetime limits?

There was previously a lifetime limit of €3 million on gains to which the reduced rate of CGT will apply.  Budget 2025 has increased this limit to lifetime gains of up to €10 million.

 Therefore, the amount on which the reduced CGT rates of 16% or 18% will apply is the lowest of the following:

1. The actual chargeable gain.

2. Twice the amount of the investment.

3. €10 million less the total of all/any other chargeable gains that may qualify under this Relief.

There will be a number of CORPORATION TAX changes:

The following will be extended for a further two years until 31^st December 2025:

1. Employment Investment Incentive (EII),

2. Start-Up Relief for Entrepreneurs (SURE) and

3. the Start-Up Capital Incentive (SCI)

In addition, the EII limit on the amount that an investor can claim relief on will be doubled.  In other words, it will be increased from €500,000 to €1,000,000.

It is proposed to increase the SURE relief available to a maximum of €140,000 per year or a total of €980,000 over seven years.

Research and Development (R&D) Tax Credit

As you’re aware, the existing Research and Development (R&D) Tax Credit provides a 30% tax credit for all qualifying R&D expenditure.

What increased have been introduced?

The first year payment threshold will now increase from €50,000 to €75,000.

Companies with claims of between €75,000 and €150,000 will benefit from a €25,000 increase in the first instalment of their claim.

Companies with claims of in excess of €150,000 will continue to receive a first instalment amount based on 50% of the R&D Tax Credit claim.

Two new Audio-visual incentives

1. Tax Credit for Unscripted Productions

A new tax credit will be introduced for the unscripted film production sector.

The relief will take the form of a 20% Corporation Tax Credit for certain production expenditure up to a maximum limit of €15 million per project.

What is the commencement date?

The commencement will be subject to State Aid approval from the European Commission.

A cultural test will be introduced.

2. Scéal Uplift

The second incentive is an 8% uplift referred to as the “Scéal Uplift”.

What does it involve?

This involves an uplift of 8% to the existing film credit in respect of certain feature film productions.

How will it be applied?

It will be applied to the existing film credit.   It will result in a tax credit rate of 40% for projects with a maximum qualifying expenditure of up to €20 million.

Who is this incentive aimed at?

This incentive is for small to medium budget productions under the Section 481 film tax credit.

What is the commencement date?

As with the Tax Credit for Unscripted Productions, the Scéal Uplift is subject to State Aid approval.

FOREIGN DIVIDENDS

With effect from 1st January 2025, a new Participation exemption for foreign sourced dividends from subsidiaries in EU/EEA and tax treaty jurisdictions will be introduced.  The aim is to simplify existing Double Taxation Relief provisions.

Currently, Ireland operates a worldwide corporate tax regime.  This means that all the profits (both domestic and foreign) earned by an Irish resident company are subject to Irish tax.  Relief is available for any foreign taxes deducted under a ‘tax and credit’ regime.

What are the new rules?

Under the new rules, a company will have the option of either:

(a) claiming the participation exemption or

(b) continuing to use existing tax-and-credit relief.

How will this be done?

To do this, an election will have to be made in the company’s annual corporation tax return. It will apply to all qualifying dividends in that particular period.

What about non-qualifying jurisdictions?

For non-qualifying jurisdictions, the existing method of claiming double taxation relief should continue.

When will it come into effect?

The new participation exemption for foreign source dividends will come into effect from 1^st January 2025.

If you would like full information on Budget 2025, please click https://www.gov.ie/en/publication/e8315-budget-2025/

Accounts Advice Centre is a firm of Tax Accountants recognised for balancing professional corporate tax expertise with personal service.  We focus on mid-market, entrepreneurial, and family-owned businesses.  To make an appointment, please email queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Property Taxes Ireland, Income Tax, Business Tax, RZLT, LPT, Mortgage Relief

The aim of this article is for you to understand the Tax measures of Budget 2025 which relate to property transactions, at a glance.  Today, the Minister for Finance and the Minister for Public Expenditure, NDP Delivery and Reform, announced the details of Budget 2025.  As anticipated, it introduced several tax measures in relation to property.  This article will focus on the property related tax measures introduced by Budget 2025, under the following headings:

1. Income Tax/Personal Tax,

2. Residential Zoned Land Tax (RZLT),

3. Stamp Duty,

4. Vacant Homes Tax (VHT) and

5. Value Added Tax (VAT).

INCOME TAX / PERSONAL TAX

 We intend to focus on the four main areas of change that could effect you:

 Rent Tax Credit

Budget 2025 raised the Rent Tax Credit

The Rent Tax Credit has been increased to:

• €1,000 for individual renters, or

• €2,000 per year for jointly assessed married couples/civil partners.

What years does this apply to?

This applies to the tax years 2024 and 2025.

What were the previous rules?

Prior to this, the Rent Tax Credit for 2024 was worth:

(a) €750 for a single individual and

(b) €1,500 for a jointly assessed married couple/civil partners.

Are these new rates backdated?

These new rates have been backdated to cover the 2024 tax year as well as the 2025 year of assessment.

 Mortgage Interest Relief

Mortgage Interest Relief has been extended.

Have there been any changes to the qualifying criteria?

There has been no change to the qualifying criteria.

What is the outstanding mortgage balance for homeowners on their Principal Private Residence?

Between €80,000 and €500,000, as of 31st December 2022.

On what will Qualifying homeowners will be eligible for this tax relief?

 In respect of the increased interest paid on their mortgage in 2024 as compared with 2022.

What tax rate applies?

Tax Relief is at the standard Income Tax rate of 20%.  The Tax Credit is capped at €1,250 per property.

How do you claim the Mortgage Interest Relief?

The taxpayer must file a Tax Return and be compliant with Local Property Tax (LPT) requirements.

Help to Buy Scheme

The Help to Buy Scheme has been extended for a further four years at the current rates until the end of 2029.

What is the aim of this scheme?

To provide certainty for future home buyers, as well as the Irish property market.

What is the “Help to Buy” Scheme?

It’s a tax rebate available to first-time buyers .  The purpose is to enable them to buy a newly built or self-built house or apartment.  This is provided the cost of that purchase is €500,000 or less.

With the extension of this scheme, first-time buyers of residential property will be able to continue to avail of:

(i) Income Tax and

(ii) Deposit Interest Retention Tax refunds

to help them purchase their home.

What does the Scheme offer?

1. A tax refund to first-time buyers, with a maximum value of €30,000 or 10% of the property price, whichever is less.

2. The refund will be from the four tax years prior to when the application is made.

3. The refund will not include any refunds already claimed.

Pre-Letting Expenses Relief

What is the Current Tax Relief?

It’s capped at €10,000 per premises. For certain pre-letting expenditure, it will be extended for a further three years to 31^st December 2027.

What does Section 97A TCA ‘97 deal with?

Rental expenses.

What does it provide?

Certain expenses, incurred on a vacant residential property before its first letting following a period of non-occupancy, are allowable as a deduction against rental income from that specific premises.

How much are pre-letting expenses?

They’re capped at €10,000 per property.

When are pre-letting expenses allowable?

They must be incurred on a property that was vacant for a minimum of six months and then let as a residential property on/before 31^st December 2027.

These provisions allow for a deduction for certain pre-letting expenses which, otherwise wouldn’t be allowable.

RESIDENTIAL ZONED LAND TAX (RZLT)

• As part of its strategy to meet an increased demand for housing, the Irish Government introduced the Residential Zoned Land Tax (RZLT).  It’s a new tax on land which is zoned for residential development and which has, in place, all the necessary services to develop housing.

• It was originally introduced in Finance Act 2021.  It stated that owners of lands which are zoned under the RZLT were to be taxed at a rate of 3% of the site’s market value from 1^st February each year commencing in 2025.

Who is not obliged to register for Residential Zone Land Tax?

• Owners whose properties are subject to Local Property Tax and have a garden exceeding one acre.  They will not be obliged to pay Residential Zoned Land Tax. They will, however, be required to complete and file a Tax Return containing details of the property.

Do landowners have an option to re-zone their land?

Budget 2025 has provided landowners with an option to re-zone their land.  Based on the economic activity carried out on their land, they can seek changes to the zoning maps in advance of the final maps being published on 31^st January 2025.

 In summary:

• A new process is available to certain landowners to obtain an exemption from the tax in 2025 where their land should not be subject to the tax.

• Budget 2025 has also introduced a twelve month deferral of the liability. This is between the date planning permission was granted and the commencement date of the development

 STAMP DUTY

New 6% Residential Rate

A new 6% rate of Stamp Duty has been introduced on residential properties from 2^nd October 2024.

The stamp duty rates for residential properties will now be as follows:

• 1% on consideration up to and including €1m

• 2% on consideration over €1m and up to and including €1.5m

• 6% on consideration over €1.5m

The existing stamp duty rates will continue to apply to instruments executed before 1^st January 2025 on foot of a binding contract in place before 2^nd October 2024.

10% rate for Bulk Purchases increased to 15%

• Where a person acquires at least ten residential units during any twelve month period, the higher rate of stamp duty is being increased from 10% to 15%, with immediate effect.

• The existing 10% rate will continue to apply to instruments executed before 1^st January 2025 where a binding contract was in place before 2^nd October 2024.

VACANT HOMES TAX (VHT)

A Vacant Homes Tax (VHT) was introduced by the Irish Government in Finance Act 2022.  The aim was to encourage an increase in the supply of residential properties available for rent or purchase. As a further incentive, Budget 2025 has increased the rate of the VHT.  The increase is from five to seven times a property’s existing base Local Property Tax (LPT) liability.

When will it take effect?

From 1st November 2024.  In other words, the next chargeable period for Vacant Homes Tax.

What does VHT apply to?

Any residential property which is occupied for less than 30 days in a twelve month period between 1st November and 31st October of the following year.

VALUE ADDED TAX (VAT)

VAT Rate on Heat Pumps

• A reduction in the VAT rate for heat pumps to 9% is effective from 1^st January 2025.

• This applies to the supply and installation of heat pumps.

• The heat pumps must meet specific technical standards, as outlined in the EU Directive.

• The aim is to encourage homeowners to install heat pumps to support climate action.

VAT Rate for Gas & Electricity

• The 9% rate of VAT on gas and electricity is to be extended until 30^th April 2025.

• The rate had been due to revert to 13½% on 1^st November 2024.

• The aim of this extension is to reduce the cost of living.

If you are interested in full information on Budget 2025, please click https://www.gov.ie/en/publication/e8315-budget-2025/

Accounts Advice Centre is a specialised firm of Accountants and Tax Consultants for property owners and landlords.  We offer dedicated services for rental income, Capital Gains Tax and landlord-specific reliefs.   If you would like to make an appointment about Irish property taxes for landlords and investors, please email queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.