Budget 2024 – supports announced for businesses

The Minister for Enterprise, Trade and Employment, Simon Coveney TD, announced a package as part of Budget 2024 to assist businesses with ongoing challenges. The range of tax measures include improvements to the R&D Tax Credit, a new Angel Investor Scheme with a reduced Capital Gains Tax Rate of 16 percent for individuals, and improvements to the EIIS. These measures will particularly benefit start-ups and SMEs. The Minister also announced the Increased Cost of Business Scheme (ICOB), which is a once-off grant for small and medium businesses. 

Welcoming the increases in personal income tax credits, reduction in the USC and the delay in the increase in Employer’s PRSI Contribution until October 2024, Minister Coveney said it was a pro-business Budget: 

"As a government we have supported businesses with targeted interventions and supports, particularly through the extraordinary challenges of recent years. I recognise though that those challenges haven’t gone away, including very high energy costs. For that reason we’re introducing the Increased Cost of Business Scheme which will benefit up to 130,000 Small and Medium enterprises. 

The aim of the Scheme is to provide financial support to those firms which have been most impacted by additional business costs, by providing a tiered grant equivalent to up to half business rates for this year. This will also go some way to helping businesses meet the increase in the Minimum Wage to €12.70, which is obviously an important step towards the government’s commitment to introducing a Living Wage. 

I’m really pleased too to see the introduction of a new Angel Investment Scheme. It will be a standalone relief, with a reduced Capital Gains Tax rate of 16% and will be targeted at angel investors who invest in ‘innovative’ SMEs. While the details of the scheme are being finalised, Enterprise Ireland will have a key role in certifying eligible businesses that the angel investor chooses to invest in. 

The changes to our R&D tax credits from 25% to 30% and the increase in the payment threshold to €50,000 are also really welcome for large and small businesses alike. The increase in the rate will mean that any companies in-scope will be eligible to the same value of the R&D tax credit before the implementation of the new minimum effective corporation tax rate." 

You can read more about some of these measures in Chartered Accountant Ireland’s Budget 2024 special newsletter.