Revenue has updated the Tax and Duty Manual regarding the Charitable Donation Scheme for tax relief for donations to approved bodies. The updated guidance confirms that, with effect from 1 January 2025, the two-year waiting period for eligibility for the scheme no longer applies (paragraph 7). Also, where a charity has merged or restructured into another entity, the condition that the predecessor entity must have been approved for two years before the "successor body" is eligible for the no longer applies.

Revenue has updated the Stamp Duty Manuals that provide guidance on relief from stamp duty in respect of transfers of agricultural land to young trained farmers and in respect of certain leases of farmland executed on or after 1 July 2018. Relief from stamp duty in respect of transfers of agricultural land to young trained farmers is provided under section 81AA SDCA 1999. The updated manual reflects the Finance Act 2024 amendments whereby: the active farmer condition may be met where the land is farmed through a company, where certain conditions are satisfied; a clawback will apply where the transferee fails to comply with the condition to farm the land for 50 percent of their normal working time. Stamp duty relief in respect of certain leases of farmland executed on or after 1 July 2018 is provided under section 81D SDCA 1999. It applies in respect of a lease for a term of 6 to 35 years of any lands which are used exclusively for farming carried on by the lessee on a commercial basis and with a view to the realisation of profits. The updated manual reflects the Finance Act 2024 amendments whereby: the legislation states that this relief, being a State aid, is granted in accordance with Commission Regulation (EU) No 1408/2013 of 18 December 2013; the relief may be claimed where the lessee is a company, where certain conditions are met.

Revenue has updated the Tax and Duty Manual which provides guidance on a tax deduction for farmers for increases in stock values, which is known as "stock relief" under section 666 TCA 1997 to reflect the extension of the relief to 31 December 2027.

Revenue has updated the Tax and Duty Manual which provides guidance on accelerated capital allowances for farm safety equipment under section 285D TCA 1997 to reflect amendments in Finance Act 2024. The list of items qualifying for accelerated capital allowances for farm safety equipment has been expanded to include certain equipment that qualifies for Targeted Agricultural Modernisation Scheme grants including calving gates, livestock monitors, floodlights for farmyards and slider/roller doors for agricultural buildings.

Revenue has published an overview of the EU VAT SME Scheme. Current provisions allow Member States to set their national VAT registration thresholds within EU rules whereby, in general, a business operating below these thresholds and making domestic supplies of goods and services is not required to register and account for VAT. However, no de minimis threshold applies where an Irish business makes supplies in another Member State. They must immediately register and account for VAT in the Member State where the supply takes place. From 1 January 2025, the EU VAT SME Scheme will allow eligible small traders the option to avail of thresholds in the other Member State and not register for VAT when supplying goods and services there.  The scheme is optional and Irish businesses wishing to register to use the scheme in other Member States must make a formal application to Revenue. The eligibility requirements include that the business must: be established for VAT purposes in Ireland only; not exceed the domestic turnover threshold(s) of the other Member State(s) where supplies are made; not exceed the Union turnover threshold of €100,000; be registered in Ireland to use the scheme (separate registration process); and       file quarterly reports once registered. Further information in available in eBrief No. 315/24.

Revenue has updated the Tax and Duty Manual which provides guidance on the Residential Premises Rental Income Relief (RPRIR) available under section 480C TCA 1997. The updated manual reflects amendments introduced by Finance Act 2024. The key changes are as follows: Relief is not available where a landlord has an overall Case V rental loss or where the landlord's overall rental profit is lower than the amount of the RPRIR (paragraph 2). The death of a landlord will not trigger a claw-back of RPRIR (paragraph 4). Where an individual is no longer entitled to the relief, the amount of relief clawed back will be the same as the amount of relief claimed.

Revenue has published a new Tax and Duty Manual regarding scenarios where section 299(1) TCA 1997 applies to the leasing of machinery and plant. This section provides that where the burden of wear and tear of a leased asset falls on the lessee, they may be entitled to claim capital allowances on the leased asset. The manual sets out when section 299(1) applies to a lease and outlines the tax implications for both lessors and lessees.

Revenue has published its opening arrangements for the holiday period. Revenue will generally provide normal services apart from on 25 and 26 December 2024 and 1 January 2025. Revenue’s public offices will remain closed from 25 December 2024 to 1 January 2025. The ROS helpdesk, Local Property Tax (LPT) and Vacant Homes Tax (VHT) line and Collector General's credit card lines will operate as normal with certain exceptions. Wednesday 25 December to Monday 30 December: The Stamp Duty Helpline will be closed from Wednesday 25 December to Monday 30 December inclusive and on 1 January 2025. Tuesday 24 December and Tuesday 31 December 2024: The ROS Helpdesk will open from 9.00 to 13.00. LPT and VHT lines will open from 9.30 to 13.30. Collector General's credit card lines will open from 9.30 to 13.30. 

With some organisations initiating a return-to-office mandate, what impact will this have on workers’ productivity and work quality? Ian Brinkley explores Few recent changes in the labour market have been so dramatic over such a short period as the rise in working at home during the pandemic. And much of that change has persisted in the post-pandemic period. In 2019, just four percent of employees in Ireland usually worked at home, while just over 11 percent reported doing some work remotely. By 2023, these figures had risen to 19 percent and 15 percent respectively, meaning about a third of all employees were involved in remote work, according to Eurostat. These percentages are relatively high compared to the overall standards in the EU. It is often argued that home-working makes workers more productive, improves job retention and increases job quality, such as work-life balance. It has certainly proved popular with workers, and there is some unmet demand from people who would like to work at home but cannot. However, the evidence to support these claims is not as clear-cut as we would like. Productivity While some studies have confirmed a positive impact on productivity, others have suggested it has no impact either way, and some find negative impacts. A 2023 survey from the CIPD found that while more employers reported a positive impact than a negative one, nearly half reported no impact one way or the other. Unsurprisingly, employers were much more enthusiastic about the potential positive impact on retention and recruitment than productivity. Many studies rely on self-assessment by individuals and employers as to whether they think employees are more productive at home, but do not measure actual output when working in the office versus remote work. We should not dismiss self-assessments, but they do make it hard to know just how big any positive or negative impact might be. What we can say is that in both Ireland and the UK, the rise in homeworking is not associated with better productivity performance across the whole economy. According to the Central Statistics Office, productivity performance since 2019 has been poor in both countries. It might be that any positive impacts of home working are being swamped by other changes in the economy, hampering productivity growth. Home working and work quality Homeworking may deliver more significant benefits as a flexible work option which employees value. However, the CIPD’s large-scale Good Work Index survey of workers in the UK does not show much change in most indicators of job quality between 2019 and 2024, despite the big rise in home working.  This is a bit of a puzzle. It could be that many of the people who shifted to homeworking since 2019 – mostly those in managerial, professional and technical occupations –already had good jobs, so moving to a different location did not greatly change their response.  For example, those who did work at home occasionally reported much higher levels of autonomy over how they did their work than those who did not, but it is likely that they would have said the same even if they had been working in the office.  These headline comparisons are instructive but not conclusive. We need to look at reported work quality for workers in similar jobs, with a mix of some working at home and some working in the office. It may also be that the standard work quality questions do not fully capture all the benefits of home-working to employees. The future of home-working There have been high-profile reports that some major employers – often in the US – are either insisting their workers return to the office or limit the number of days they can work at home. In the UK, civil servants working at home have also attracted criticism, albeit without much evidence of any detrimental impacts. The 2023 CIPD survey found that senior managers expressed concern about home working in about 40 percent of all employers surveyed. However, concerns about getting people back into the office when needed, managing teams, and reduced opportunities for communication, collaboration and innovation were more common than concerns that employees either could not be trusted or were less productive at home. On balance, home-working probably does have positive impacts on both productivity and work quality, but to date they have been modest. The shift to homeworking is here to stay despite attempts in some organisations to reign it back. The CIPD 2023 survey found that 20 percent of employers were putting in active steps for more hybrid working over the next 12 months. For many organisations, a better option will be to manage home-working more effectively rather than risk making themselves less competitive in labour markets by limiting a flexible work option that many employees have come to see as an expected and valued part of the work offer. As more organisations learn how to get the best out of home-working employees, perhaps homeworking will eventually start to move the dial on aggregate labour productivity. Ian Brinkley is a labour market economist and commentator

CFOs in Ireland are cautious about the year ahead but remain focused on balanced investment in business growth and innovation, writes Tom Hynes The biggest priorities for Ireland’s Chief Financial Officers (CFOs) in the 12 months ahead will include digitalisation and technological transformation, supply chain efficiencies, organic growth and the introduction of new products and services. Our Autumn Deloitte European CFO Survey has found a decline in business sentiment among CFOs in Ireland, however, with just 19 percent feeling more optimistic about the financial prospects of their companies compared with 61 percent in the Spring of this year. The figure is down from 63 percent in Autumn 2023 and comes as the proportion of CFOs who now feel less optimistic about their companies’ financial outlook has tripled, from eight percent in Spring 2024 to 28 percent in Autumn 2024.  Our survey results clearly show an increased wariness among CFOs in Ireland when it comes to financial risk.  Several factors are likely contributing to this, including the uncertain economic outlook and tight financing conditions. Geopolitical uncertainties, with fears over protectionism, trade disruption and high costs around labour and energy will also add to this.  Asked to select the factors likely to pose a significant risk to their business in 2025, 89 percent cited retaining and attracting skilled and qualified talent, with 76 percent raising concerns about the economic outlook and growth risks. A total of 76 percent identified cybersecurity risks, and 74 percent selected increasing regulations. The data for our Autumn Deloitte European CFO Survey was collected in September and October 2024 and reflects responses from 1,893 CFOs in 27 countries, including 54 in Ireland. The survey shows that the outlook for capital expenditure (CAPEX) among CFOs in Ireland remains positive, with 42 percent planning to increase their CAPEX over the next 12 months, reflecting a measured investment approach.  CFOs are acknowledging that they need to adapt to evolving regulations by maintaining robust compliance systems and proactively managing regulatory risks. A balanced approach is being applied to the business priorities identified by CFOs. Asked about the priorities for their business in 2025, 48 percent of the CFOs surveyed selected digitalisation and technological transformation. A total of 44 percent said they planned to review supply chain efficiencies, 37 percent selected organic growth, and 35 percent cited the introduction of new products and services. It is encouraging to see Ireland’s CFOs combining defensive strategies, such as reviewing supply chain efficiencies and fostering economic growth, with expansionary strategies, such as digitalisation and technological transformation.  Leveraging advanced technologies, like generative artificial intelligence, can assist companies in driving efficiency and innovation, providing them with a competitive advantage.  Combining investment in this area with enhanced operational resilience and sustainable development is a prudent approach that should position companies well for future success. The number of Irish CFOs planning to increase hiring has dropped significantly by almost half in the last year, down from 58 percent in Autumn 2023 to 31 percent in Autumn 2024.  The majority (81%) believe it is not an opportune time to take on greater risk on their balance sheet, up from 71 percent in Spring 2024. The proportion of CFOs anticipating revenue growth over the next 12 months has also fallen from 74 percent in Spring 2024 to 59 percent in Autumn 2024.  The proportion of those optimistic about an increase in operating margins has fallen from 53 percent in Spring to 37 percent in Autumn.  While they are right to be cautious, it is positive that the majority remain hopeful about revenue growth over the next 12 months and over a third still expect an increase in operating margins.  Tom Hynes is a Partner with Deloitte Ireland

Revenue has contacted us via email advising that because the Capital Gains Tax (CGT) payment deadline for disposals made between 1 January 2024 and 30 November 2024 falls on Sunday 15 December 2024, they are extending the payment deadline to Monday 16 December 2024. This means that Revenue will accept payments for that period on Monday as if the payment was received on Sunday. In their email they noted the following: “It is noted that the Sunday deadline is a payment deadline rather than a return filing deadline. As a once-off concession, payments received on Monday 16 December 2024 will be treated as if they were made by the Sunday deadline.” The Institute, under the auspices of the CCAB-I, requested this extension at the most recent Tax Administration Liaison Committee (TALC) Collections meeting and as well at the most recent Main TALC meeting. We are pleased to announce this vital extension which we hope will ease the compliance burden on our members at this time.

  In this week’s Sustainability/ESG bulletin read about warnings from the Climate Change Advisory Council and the Irish Fiscal Advisory Council, the SEAI’s new Business Energy Upgrade Scheme, guides to sustainable gifting, and news on Northern Ireland’s carbon budgets, biofuel consultation and energy developments, as well as the UK Citizen’s Assembly’s call for trade policy to combat climate crisis. Also covered is the €340-€477bn decarbonisation investment gap identified for the EU, the Commission’s 2024 ‘SMEs, resource efficiency and green markets’ survey, news from the latest UN COP, and a report into product-level carbon intensity metrics.   Ireland news Global Chartered Accountancy institutes lead the way towards net-zero Chartered Accountants Ireland has participated in a study mapping the collective efforts of global Chartered Accountancy institutes in leading the way towards net zero and demonstrating the profession’s leadership in advancing sustainability. Read more here. CACC calls for transformational opportunity to achieve a sustainable society The Climate Change Advisory Council (CCAC) has issued a press release warning of “profound costs to the Irish economy and to … people” if Ireland does not reduce its emissions. In its final proposed Carbon Budget 3 (2031-2035) and provisional Carbon Budget 4 (2036-2040), CACC calls for strong political leadership to make the necessary investment, taxation and policy decisions to help Ireland capitalise on the “transformational opportunity that a climate neutral society presents”. An annual reduction of at least 6.3% on average year on year to 2040 is needed in order for Ireland to remain within the carbon budget, CACC warns, while the Sustainable Energy Authority of Ireland (SEAI) reportedly finds that emissions from the transport sector would need to be reduced by 35% in 2025 alone for that sector to stay within its existing 2025 carbon budget. Irish Fiscal Advisory Council advises spending rule Government “will stick to” The most recent report from the Irish Fiscal Advisory Council (Ifac) is calling for Ireland to set a more strategic course in budget policy, and a sustainable spending rule that “it will stick to”, and a realistic plan for dealing with the State’s health, housing and climate challenges. Commenting, Ifac chairman Seamus Coffey advised the incoming government to put in place ‘guardrails’ in the form of a rule to ensure against ramping up ongoing commitments as each budget day approaches: “A rule and some realistic plans would help to tackle infrastructure deficits, ageing pressures and climate needs, while also protecting growth and limiting future job losses.” SEAI launches new Business Energy Upgrade Scheme The Sustainable Energy Authority of Ireland (SEAI) has launched a new Business Energy Upgrade Scheme. The scheme, funded by the Climate Action Fund, offers up to €120,000 for a range of common building upgrade measures including pumps, solar thermal, automatic controls, heat pumps, ventilation, and wall insulation. The scheme is open to all businesses and small public bodies who are upgrading a building they own or occupy. Applications can be made online. BITIC publishes guide to sustainable gifting Business in the Community Ireland (BITCI) has published its Corporate Gift Guide 2024, with advice for choosing presents and a list of business and charities offering sustainable gift ideas. According to BITCI, corporate gifting is an opportunity for a company to put its sustainability values into practice, inspire employees, build a positive brand image, and contribute to a better world. Irish minister delivers keynote at Coalition for Capacity on Climate Action The President of the Eurogroup and Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe, T.D., has delivered a keynote speech at the inaugural Symposium of the World Bank’s Coalition for Capacity on Climate Action (C3A). Launched in 2023, the C3A seeks to bridge the gap between science and policy in addressing climate and nature-related economic and financial challenges. It engages with Ministries of Finance, among others, to support informed policy debates on ways to achieve shared prosperity on a liveable planet. In his address, Minister Donohoe stated that “a liveable climate is our collective goal, whether we like it or not”, and that “[t]o succeed, [climate] policy must be effective, legitimate and global”. Calls for participation in development of standards in support of Accessibility Act The National Standards Authority of Ireland (NSAI) is inviting interested parties to get involved in the development of new standards and the revision of existing standards, in support of the European Accessibility Act (EAA). The EAA seeks to harmonise accessibility requirements for certain products and services within the EU, by eliminating and preventing barriers to the free movement of products and services in scope of the EAA. NSAI is calling for interested parties to participate in national technical committees, to represent the national position during the development of these standards. Read more on the European Accessibility Act (EAA) from Chartered Accountants Ireland. ISIF trebles its target allocation, committing a further €100m, to female-led investment funds The Irish Strategic Investment Fund (ISIF) has announced a further €100m funding to its initiative to invest in female-led private equity and venture capital funds. The initiative, which was launched in 2022, exceeded its original commitment of €50m by €10m. Through the initiative, ISIF is seeking to demonstrate its commitment to addressing gender inequality and promoting greater diversity at senior levels – both within ISIF and in the companies and funds in which it invests. Ireland's UN SDGs - Goal 4 Quality Education 2024 The Central Statistics Office (CSO) has published Ireland's UN SDGs indicators data for Goal 4 Quality Education 2024. The release is one of a series monitoring and reporting on how Ireland is progressing towards meeting its targets under the 17 UN Sustainable Development Goals (SDGs). This report on Goal 4 has 12 indicators which are organised under ‘Childhood Education’, ‘Adult Education’ and ‘Education Infrastructure’.  Among the findings was that 64% of adults aged 25-34 participated in lifelong learning in 2022, compared with 35% of people aged 55-69. Northern Ireland/UK news Northern Ireland approves carbon budget legislation The Northern Ireland Assembly has approved legislation setting Northern Ireland’s first three carbon budgets and a new 2040 target to reduce emissions. The approval delivers further on key statutory requirements of the Climate Change Act (Northern Ireland) 2022. Commenting DAERA Minister Andrew Muir stated: “There is already a statutory target for 2030. However, setting the carbon budgets and the 2040 target will provide all sectors with a clear focus and driver to step up action to address climate change.” Separately, Carbon Intensity Indicators published by the Statistics and Analytical Services Branch in the Department of Agriculture, Environment and Rural Affairs (DAERA) has found that Gross Value Added (GVA) has grown substantially since 1998, despite a decline in greenhouse gas emissions. The ratio of total greenhouse gas emissions to GVA in the region decreased 70% from 1998 to 2022. Call for evidence on use of biofuels Northern Ireland’s Economy Minister Conor Murphy has launched a Call for Evidence to explore the potential use of biofuels as an alternative to home heating oil and fossil-based LPG. Industry research and analysis indicates biofuels are the most likely renewable heat alternative for homes and businesses that cannot be heated by heat pumps, the gas grid or heating networks. The Call for Evidence is available at Citizen Space and will remain open until 4 March 2025. Separately the Executive has endorsed Minister Murphy’s proposal to ban onshore oil and gas exploration and production in the north. Commenting, Minister Murphy stated: “Reaching our net zero target by 2050 is both a legal requirement and a moral obligation which is why decarbonisation is central to my economic plans.” There are currently no active petroleum licences in Northern Ireland with the last active one relinquished in 2020. Northern Ireland energy developments A report detailing the percentage of electricity consumption generated from renewable sources in Northern Ireland shows that for the year ending September 2024, 44.5% of total metered electricity consumption in Northern Ireland was generated from metered renewable sources (81.9% of which was generated from wind). This is a decrease of 2.9 percentage points on the previous 12 months. The full report is available on the DfE website. Separately, Economy Minister Conor Murphy has launched a ‘Save Energy, Save Money’ information campaign which aims to lower energy bills through energy efficiency. The campaign, which will run until March 2025, aims to help consumers save money on their bills through energy efficiency advice and information whilst also increasing public understanding about the transition to net zero in Northern Ireland. UK Citizens’ Assembly calls for trade policy to combat climate crisis The world’s first Citizens’ Assembly on Trade and Climate has issued a call for the UK Government to use trade policy as a tool to combat the climate crisis. The Assembly, convened by the Trade Justice Movement, Queen Mary University of London, and MutualGain, agreed 15 specific and detailed recommendations for the UK government which can be found in its Policy Brief: Assembly Findings and Recommendations. The recommendations are grouped under ‘Tariffs, quotas & trade agreements’, ‘subsidies’, ‘procurement’ and ‘standards’. Europe news EU decarbonisation investment gap - €340-€477bn A study by European policy advisory company Climate Strategy and Partners has found that the EU faces an annual investment gap of between €340-€477bn to decarbonise its highest emitting sectors by 2050. The report was based on data from the 2024 ‘Draghi Report’ on European competitiveness, and outlines ways the EU can close the investment gap. These include eliminating waste and inefficiencies in the delivery of EU funds, not reinventing the wheel, removing bottlenecks and channelling grants to where they are most needed. 12-month delay in EU deforestation rules Companies will have one more year to adapt to new EU rules to prevent deforestation which will ban the sale of products sourced from deforested land. The delay in the coming into force of the EUDR is in response to concerns raised by EU member states, non-EU countries, traders and operators that they would not be able to fully comply with the rules if applied from the end of 2024. The deforestation regulation adopted by Parliament on 19 April 2023, aims to fight climate change and biodiversity loss by preventing the deforestation related to EU consumption of products from cattle, cocoa, coffee, palm-oil, soya, wood, rubber, charcoal and printed paper. Already in force since 29 June 2023, its provisions were to be applied by companies from 30 December 2024. SMEs, resource efficiency and green markets The European Commission has published its 2024 SMEs, resource efficiency and green markets. The report aims to contribute to the Commission’s efforts to help SMEs become greener and foster their long-term competitiveness. Findings include that 93% of EU SMEs are implementing at least one resource-efficiency measure such as saving energy, minimising waste, and recycling, and that renewable energy use is on the rise. Challenges reported by SMEs include complex administrative or legal procedures (35% of SMEs) and high costs (28% of SMEs), identified as major barriers to implementing resource-efficiency measures. World News Consultation on reporting on financial activities emissions The Partnership for Carbon Accounting Financials (PCAF) is calling on signatories, industry experts, and all relevant parties to participate in a public consultation on its newly developed methods for measuring and reporting the greenhouse gas (GHG) emissions associated with financial activities. This consultation will run 28 February 2025. The COP combatting desertification, land degradation and drought The sixteenth session of the Conference of the Parties on the United Nations Convention to Combat Desertification (UNCCD) has taken place in Riyadh, Saudi Arabia, from 2 to 13 December. Confusingly also called ‘COP16’, like the Biodiversity COP in late October this year, the UNCCD COP aims to raise global ambition and accelerate action on land and drought resilience. According to the Business for Land (B4L) Initiative, launched at the 2024 World Economic Forum, up to 40% of the world’s land is already degraded, threatening key economic sectors. Separately, read Susan Rossney’s article in Accountancy Ireland this month on the uneasy agreement read at COP29 to pledge $300 billion in climate funding to developing countries. Product-level carbon intensity metrics The OECD has published a report Towards more accurate, timely, and granular product-level carbon intensity metrics: challenges and potential solutions. Prepared under the auspices of the Inclusive Forum on Carbon Mitigation Approaches (IFCMA), this report presents an overview of the main approaches to, and challenges faced when calculating product-level carbon intensity metrics – including those applicable to collecting and verifying information along the supply chain. It provides insights on how to minimise duplication among various initiatives, minimise compliance and reporting costs for firms, and avoid possible disruptions to trade. Articles Italy plans mandatory insurance for climate risks (Bloomberg) Sustainability reporting: why standards matter (ICAEW) The professional services sector needs to develop a moral climate compass (Business Post) Ireland can be a net exporter of green electricity to Europe but only if we act now (Irish Times) Accountancy Europe and IFAC Reunite to Discuss the Future of Sustainability Assurance Engagements (IFAC) Why companies need to put profitability at the centre of transition planning (SustainableViews) Law to cut emissions in NI approved by assembly (BBC News) Podcast Speakers dissect COP29, what it means for businesses and why private sector voices should be in the room. Sustainable Views: Why businesses should be at COP  Did you know? The much-anticipated Chartered Accountants Ireland Annual Dinner will once again be held in the Convention Centre Dublin (CCD). The world’s first carbon-neutral constructed convention centre, and one of Europe’s most environmentally friendly venues, the CCD is one of only three venues in Ireland to hold the ISO 20121 accreditation in Event Sustainability Management Systems. It also holds Quality Standard ISO 9001 and Environmental Standard ISO 14001, as well as British Security Standard BS7499. The Annual Dinner will take place at the on Friday, January 24, 2025.  You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.