Budget 2023 has been unveiled by Minister for Finance Paschal Donohoe and Minister for Public Expenditure Michael McGrath.
This guide provides a high-level overview of Budget 2023. It aims to explain how money will be raised and spent in 2023.
Claim Your Tax Rebate Today!
Taxation
Income Tax
– An increase of €3,200 in the income tax standard rate cut-off point for all earners, from €36,800 to €40,000 for single individuals (worth €640) and from €45,800 to €49,000 for married couples / civil partners with one earner.
– An increase of €75 in the Personal Tax Credit, Employee Tax Credit and Earned Income Tax Credit from €1,700 to €1,775.
– An increase of €100 in the Home Carer Tax Credit from €1,600 to €1,700.
USC
– An increase of €1,625 to the 2% rate band ceiling from €21,295 to €22,920
– The reduced rate of USC concession for medical card holders is being extended for a further year.
Small Benefit Exemption
– An increase in the limit to €1,000 and an increase in the number of benefits in a year that an employer can give from one to two per year.
Rent tax credit
– Introduce a new €500 tax credit for private tenants who are not in receipt of other State housing supports. The credit will be claimable “in year” in 2023 and in subsequent years and from early in 2023 in respect of rent paid in 2022.
Help to Buy
– Extension of Help to Buy (HTB) to 31 December 2024.
Sea-going Naval Personnel Tax Credit
Extension of the Sea-going Naval Personnel Tax Credit to 31 December 2023.
Slurry Storage Facilities
– Accelerated capital allowances for the construction of slurry storage facilities so that 50% of expenditure is claimed over two years.
Foreign Earnings Deduction
– Extension of Foreign Earnings Deduction (FED) to 31 December 2025.
Key Employee Engagement Programme
– Extension of Key Employee Engagement Programme (KEEP) to 31 December 2025, facilitating the buy-back of KEEP shares by the issuing company and increasing the company limit to €6 million.
Special Assignee Relief Programme (SARP)
– Extension of Special Assignee Relief Programme (SARP) to 31 December 2025 and increasing the minimum income limit for new entrants to €100,000.
Section 481 Film Relief
– Finance Bill 2022 will extend Section 481 from its current end date of 31 December 2024 to 31 December 2028.
Research and Development Tax Credit
– Finance Bill 2022 will introduce changes to the payment provisions for the R&D tax credit, to align with new international definitions of refundable tax credits.
Knowledge Development Box (KDB)
– Finance Bill 2022 will extend the sunset clause of the KDB for 4 years, to accounting periods commencing before 1 January 2027. The KDB will have a new effective rate of 10%, to come into effect from a date to be set by commencement order.
Young Trained Farmer (Stamp Duty) Relief
– Extension to 31 December 2025.
Farm Consolidation (Stamp Duty) Relief
– Extension to 31 December 2025.
Farm Restructuring (Capital Gains Tax) Relief
– Extension to 31 December 2025.
Stock reliefs
– Extension of the Young Trained Farmer and Registered Farm Partnerships stock reliefs to 31 December 2024.
Living City Initiative
– Extension of the Living City Initiative (LCI) to 31 December 2027, acceleration of relief for owner-occupiers so that it can be claimed as a deduction from total income of 15% of the total eligible expenditure in each of the first six years and 10% for the seventh year and carry forward of relief for owner-occupiers.
Pre-letting Expenses
– Increase eligible expenditure limit for pre-letting expenses for landlords to €10,000 and halve the vacancy period to six months.
Vacant Homes Tax
– A Vacant Homes Tax (VHT) will be introduced in 2023. The tax will apply to residential properties which are occupied for less than thirty days in a twelve month period.
– Extension of Residential Development Stamp Duty Refund Scheme to end-2025.
Defective Concrete products Levy
– New levy of 10% on certain concrete products at point of first supply.
Carbon Tax
– The Carbon Tax rate will increase from the current rate of €41 to €48.50 per tonne of CO2. This will apply to auto fuels with effect from 12 October 2022 and all other fuels from 1 May 2023.
Social Welfare
weekly social welfare rates will be increased by €12 for working age recipients
there will also be a €12 increase in weekly payments for pensioners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.