Key changes announced in Budget 2025

The key changes announced in Budget 2025 are:

• Increases to tax credits and bands as well as a 1 percent reduction in the USC, 

• An increase in the rental tax credit to €1,000, including a retrospective increase to its level in 2024, 

• The first increases in the CAT group tax free thresholds since 2019, 

• Enhancements to some business and investor reliefs, including a change to the proposed €10 million cap on retirement relief for family transfers of businesses,

• The small gift exemption which allows an employer to reward employees has been enhanced to allow five non-cash gifts up to a value of €1,500 per year, 

• Revenue will conduct a range of targeted compliance management activities in 2025, and 

• Confirmation that the participation exemption for foreign sourced dividends will commence as expected from 1 January 2025. 

The Institute has a webpage dedicated to Budget 2025 where you can find further information.