Finance Bill 2024 was recently published and contains the legislative proposals to implement the changes to the stamp duty announced by the Minister for Finance in his recent Budget speech. The revised rates on conveyances of residential property which apply from 2 October 2024 are as follows: 1 percent on consideration up to €1 million, 2 percent on the next €500,000 of consideration, and 6 percent on the balance. Where the conveyance is in respect of three or more apartments in the same apartment block, the rates are 1 percent on the consideration up to €1 million and 2 percent on the on the balance. In addition, the higher rate of stamp duty that applies on certain bulk purchases of residential property (excluding apartments) has increased to 15 percent. Readers should note that transitional measures apply the rates that were in force prior to 2 October 2024 to instruments executed between 2 October 2024 and 1 January 2025 where: there was a contract in place before 2 October 2024 that was binding, and the instrument contains a certificate to this effect.

Next Friday 1 November 2024 is the liability date for 2025 Local Property Tax (LPT). The person liable for the property on 1 November 2024 must pay the LPT charge for 2025, even if they dispose of the property between 1 November 2024 and 31 October 2025. Property owners are reminded that where a residential property has been newly built or it has been refurbished and has become occupied/suitable for use as a dwelling between 2 November 2023 and 1 November 2024, the property is liable for LPT in 2025 by the above deadline. A taxpayer who owns a property which is newly liable for LPT is required to value their property as at 1 November 2021. Revenue’s website contains guidance on valuing newly liable properties, with further information on LPT available on Revenue’s dedicated LPT webpage. 

Readers are reminded that Thursday 7 November 2024 is the return filing date for Vacant Homes Tax (VHT). The VHT is due on residential properties that are liable to Local Property Tax and are occupied for less than 30 days in the year ending 31 October 2024. Further information is available on Revenue’s website.   VHT returns can be submitted via Revenue’s myAccount, ROS or the LPT Portal. The system will guide property owners through the three-step process to review their details, submit their return and make a payment if necessary.  

Revenue has updated the Return of Qualifying Investments in a Qualifying Company (Form RICT) and Return of Information of an Investment Fund Return (Form IF) to reflect the changes made to the Employment Investment Incentive and related schemes in Finance (No.2) Act 2023. These changes were largely driven by amendments required under the EU General Block Exemption Regulation. The returns are now available in Revenue’s eBrief No. 262/24 in respect of investments made in 2024, with updated instructions and explanatory notes for each.

The Minister for Finance, Jack Chambers TD has published the report of the Funds Sector 2030 review. The Institute, under the auspices of the CCAB-I, responded to the review in September 2023 and we now welcome the report of the review group. The Department of Finance commenced the review to understand the state of the Irish fund sector and the extent to which Ireland’s tax, legal and regulatory framework remains best-in-class. Given the many developments in recent years, the review aims to support the long-term growth in the sector in Ireland, including in the retail investment sector. Concluding that Ireland is well placed to grow in the funds and asset management sector while noting that “what has worked for Ireland in the past will not necessarily work into the future”, the review team has developed a set of recommendations to address the material issues identified in the review. As with any change in legislation and regulation, the Exchequer impact of those changes will need to be carefully considered. So, the phased introduction of these changes is recommended, beginning with changes to the Investment Undertaking Tax regime. One of the recommendations call for the reform of the taxation of Irish-domiciled funds to align with the treatment of equivalent products in EU, EEA and OECD territories. The following proposals are noted in the report: Remove the eight-year deemed disposal requirement, Align the tax rates for Investment Undertaking Tax and Life Assurance Exit Tax with the CGT rate (currently 33 percent), and Allow for a limited form of loss relief. Commenting on today’s publication Minister Chambers said: “The story of the funds industry over the last five years has been one of growth, with 22% growth in direct employment over the last five years, it’s important to recognise where we have been successful. However, it is even more important to understand where we need to move to, to be successful in the future, that was a key task for this Review. The regionalisation of the sector is a key feature of the funds industry here. There are people living in Donegal, Cork, Limerick, Kilkenny and Kerry working in the sector because of firms who have established their Irish operations there. People no longer have to move to Dublin or abroad to pursue a career in the funds sector. And for those who have worked in funds abroad, gaining experience and expertise, Ireland now offers them attractive careers to return to. The fact that the review was commissioned and undertaken is a sign of the importance we see in the funds and asset management sector. The review has had a positive impact, leading to a period of deeper thought, not just on today’s priorities, but the future outlook and how the sector interacts with Government, with regulators and with its customers. I would like to thank everyone who responded to the consultation, including many individual taxpayers, and those who engaged in further discussions with the Review Team subsequently. I would also like to that the Institute of Banking for producing a thorough and engaging history of the sector which I am pleased to publish alongside the Review today.”

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs Team. Miscellaneous guidance updates and publications Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020, Customs, VAT and excise UK transition legislation from 1 January 2021, Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS), Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS), External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, Safety and security requirements on imports and exports, Making an entry summary declaration, and Data Element 2/3: Document and Other Reference Codes: Licence Types — Imports and Exports of the Customs Declaration Service (CDS).

In this week’s miscellaneous updates, we bring you news of a new form which should be used in the event of insolvency where a business pays plastic packaging tax and needs to deregister, and regulations have been laid to introduce the Independent Film Tax Credit. HMRC has also published a new Creative Industries Expenditure Credit Manual and guidance has been published on how public bodies can get technical advice and support from HMRC. The plastic packaging tax and insolvency scenarios HMRC has introduced a new digital form which businesses must use to: notify HMRC of an insolvency event, submit plastic packaging tax returns, and deregister from this tax. Independent Film Tax Credit Earlier this month on 9 October, regulations were laid to implement the new Independent Film Tax Credit (IFTC). This was announced by the previous government in the March 2024 Budget and will provide an uplift of 19 percent to the existing Audio-Visual Expenditure Credit. It is specifically targeted at low-budget British films with a budget of up to £15 million but will be tapered for those with a budget of up to £23.5 million. Companies will be able to apply to HMRC to claim the IFTC from 1 April 2025 if principal photography began on or after 1 April 2024. Certification applications for the enhanced uplift commence from tomorrow, 30 October 2024. Support with tax for public bodies HMRC has published guidance on how public bodies, such as the NHS, housing associations, local authorities, etc. can get technical advice and support from HMRC.

There are just two days to the 31 October 2024 self-assessment paper filing deadline for 2023/24 in order to avoid penalties. Readers are reminded that if an online self-assessment return cannot be filed by virtue of one of the online filing exclusions or special cases (search GOV.UK for details as these regularly change) meaning the return must be filed on paper instead, then in those cases, the 2023/24 paper filing deadline is extended to 31 January 2025. A reasonable excuse claim should accompany such returns.

Tomorrow sees Chancellor of the Exchequer Rachel Reeves deliver the first Labour Party Budget in nearly fifteen years. The Institute’s Tax Team will be analysing the Budget’s tax announcements and a newsletter reporting on key areas will issue to members. Detailed analysis will follow in Chartered Accountants Tax News next Monday 4 November and in subsequent weeks. 

On 24 October the Ulster Society hosted a legal series webinar in partnership with A&L Goodbody on the topic of AI in the Workplace. In this webinar, Aisling Byrne, Partner and A&L Goodbody, gave her professional insights into: Regulation of AI Overview of AI use in the workplace Key Risks Effective compliance A recording of this webinar is available to view, for free and on-demand, HERE A pdf copy of Aisling's slides is available to view HERE

  In this week’s Sustainability/ESG bulletin read how Irish SMEs favour green investments despite cost barriers, the Just Transition Commission, and the new Nature Strategy Accelerator Programme from Business for Biodiversity Ireland. Also covered are updates from Northern Ireland and the EU, and calls from the global accountancy profession for G20 leaders to focus on sustainability, transparency, and governance as the 2030 deadline for the United Nations Sustainable Development Goals (SDGs) approaches, as well as the usual articles, resources and upcoming events.   Ireland news   Irish SMEs favour green investments despite cost barriers, survey finds A new survey by the Strategic Banking Corporation of Ireland (SBCI), the State’s promotional financial institution, has revealed a strong preference among Irish SMEs for green investments that reduce energy costs, such as solar panels and energy-efficient lighting. Among the barriers to investing in sustainable options are cost (45%), payback period (42%) and uncertainty about the benefits of sustainability investment (22%). A diverse range of motivations for businesses embracing sustainable practices were cited, including hoping to play a role in climate action by reducing emissions (26%) and aiming to decrease heating and electricity costs (29%).     Ibec and Davy Horizons launch comprehensive CSRD Toolkit for Businesses Business group Ibec, partnering with Davy Horizons, has published a toolkit for large and small enterprises, Unpacking CSRD A guide for business. The guide aims to be a comprehensive resource for understanding and implementing the CSRD requirements. It has insights and guidance for both organisations in scope of CSRD, and small enterprises beginning their sustainability journey and who may be part of the supply chain of an in-scope organisation.   €88.5m partnership for offshore wind and infrastructure project The Port of Cork Company and ISIF are partnering to develop new port infrastructure in Cork Harbour. The €88.5 million investment will support Ireland’s first offshore wind projects and enhance the Cork Container Terminal. The investment also aligns with the Port of Cork’s MasterPlan 2050 to improve multi-purpose berths and increase efficiency for international customers, and will support Ireland’s transition to Net Zero.   Government appoints members to Just Transition Commission The government has approved the appointment of members to the Just Transition Commission. This independent advisory body will advise and support the Government on ensuring the climate transition is achieved fairly, and on the potential impacts, risks and opportunities for different sectors. Membership of the Just Transition Commission comprises independent experts from a range of backgrounds, as well as nominees from the five ‘pillars’ of social dialogue: Agriculture, Community and Volunteer, Employer, Environment and Trade Union.   Minister announces advisory committee for Ireland’s Nature Restoration Plan The Minister for Nature, Heritage and Electoral Reform, Malcolm Noonan TD, announced the establishment of an independent Advisory Committee on Nature Restoration to support the development of Ireland’s Nature Restoration Plan (NRP). The NRP is to be developed under the Nature Restoration Law and is due to be submitted to the EU Commission by 1 September 2026. A Finance Working Group will consider the financial aspects of the plan to 2030 and beyond, including socio-economic impact evaluation, the maximisation of existing programmes, and new financial mechanisms.   Business for Biodiversity Ireland releases Nature Strategy Accelerator Programme for businesses Business For Biodiversity Ireland (BFBI) has released its Nature Strategy Accelerator Programme to guide Irish businesses to develop a strong, credible strategy to identify their impacts and dependencies on nature and ensure compliance with the new EU legislation regarding environmental reporting.  The Nature Strategy Accelerator Programme  reflects a model of best practice in line with current international developments, tailored to the Irish context and aligned with grants available in Ireland through Local Enterprise Offices, Enterprise Ireland, Údarás or the IDA.   National Youth Assembly Calls for Tax Incentives on Eco-Friendly Items The Report from the third National Youth Assembly on Climate has called for less taxation on eco-friendly items. The annual assembly, which this year took place on 11 April, is part of the government’s National Dialogue on Climate Action and annual Climate Action Plan. Among the many recommendations from the young people were for initiatives, careers and a rewards systems in place in order to keep people engaged in climate, and more taxation on non eco-friendly items.   CCAC warns of costs exceeding €8 billion for failure to meet climate targets The cost of failing to meet EU targets could exceed €8 billion for the period up to 2030, warns the Climate Change Advisory Council (CCAC) in its recently published Annual Review 2024 - Cross Sectoral Review. The report also calls for an end to Ireland’s reliance on – and subsidies for – harmful, expensive and unsustainable fossil fuel use. The CCAC also called for a detailed implementation plan to deliver the diverse range of bioeconomy and ecosystem services required to maintain a sustainable, resilient and biodiversity rich economy.   Northern Ireland news   In a letter to the Exchequer Secretary to the Treasury, Chartered Accountants Ireland  has highlighted a range of tax policy and tax administration recommendations and concerns ahead of next week’s Budget and the 2025 Spending Review. Among the recommendations made was for UK tax policy to be used to help drive behavioural change which in turn should result in decreasing carbon emissions and promoting of nature-positive measures. Suggestions included introducing incentives to make investing in nature-positive actions more attractive to businesses, and ring fencing for nature restoration some of the receipts from the climate change levy currently imposed on all businesses.   Northern Ireland’s Department of Agriculture, Environment and Rural Affairs (DAERA) is consulting on a draft environmental principles policy statement (EPPS), which sets out how five internationally recognised environmental principles should be interpreted and proportionately applied to policy-making. The consultation will close on Monday 9 December 2024 and can be accessed here.   The Northern Ireland Budget Sustainability Plan has set out how the Executive intends to meet the condition in the financial package to raise at least £113 million in additional revenue. Commenting on the Plan, which was published this month by the Department of Finance following agreement by the Executive, Finance Minister Dr Caoimhe Archibald, emphasized the importance of a vibrant economy to sustainably fund public services and meet increasing demands: “We need budgeting and financial management that looks at tomorrow as well as today.”   Europe news The European Parliament has demanded an EU budget for 2025 that focuses on improving people's lives, boosting competitiveness, and addressing current challenges. Parliament wants to boost programmes vital in, among other things, helping people suffering from natural disasters, improving climate action, managing migration and security needs, and strengthening EU support for neighbouring regions experiencing geopolitical and humanitarian crises.    The EU Committee on the Environment, Public Health and Food Safety has adopted its demands for the UN Climate Change Conference COP29. Phasing out fossil fuels and related subsidies and adopting carbon-pricing mechanisms worldwide are among the matters in the resolution to be put to a vote by the full house during the plenary session of 13-14 November. The Commission had secured ambitious EU negotiating mandate for the ‘triple COPs’ on climate, biodiversity and desertification earlier this month.   The European Commission has selected 85 net-zero projects to receive €4.8 billion in grants from the Innovation Fund. The selected projects are set to enter into operation before 2030. Over their first 10 years of operation they are expected to reduce emissions by about 476 million tonnes of CO2e. This will contribute to European decarbonisation objectives, reducing emissions from those sectors that are particularly difficult to decarbonise.    The Commission has granted more than €380 million to 133 new projects across Europe under the LIFE Programme for environment and climate action. The allocated amount represents more than half of the €574 million total investment needed for these projects - the remainder coming from national, regional and local governments, public-private partnerships, businesses, and civil society organisations. Of the 133 projects, 26 will promote a more circular economy and quality of life, 25 will support nature and biodiversity in a wide range of areas, 23 climate change resilience and mitigation projects, and 59 will aim to ensure a clean energy transition.   The European Commission has announced a proposal to amend the three EU regulations to ensure that EU funds can be quickly mobilised in support of recovery from climate-related disaster. The proposal will now go through the ordinary legislative procedure in the European Parliament and the Council of the European Union. The proposals come as a direct response to the floods affecting Central and Eastern European countries and wildfires in Portugal in September 2024.   World news The Biodiversity COP16 is currently underway in Cali, Colombia, from October 21 to November 1, 2024. This summit focuses on implementing the Kunming-Montreal Global Biodiversity Framework, which aims to halt biodiversity loss by 2030. Delegates are discussing strategies to protect ecosystems and mobilize resources for global biodiversity conservation. Read more here.. The International Energy Agency (IEA) predicts that demand for electricity will surge over the next decade, due to new factories, electric vehicles, air-conditioners and data centres. In its annual World Energy Outlook report, the agency calls for urgent public-private dialogue between policymakers, the tech sector and the energy industry ,and reportedly predicts that growth in renewable energy could potentially cause coal, oil and natural gas use to peak this decade. The global accountancy profession, through the International Federation of Accountants (IFAC), is urging G20 leaders to focus on sustainability, transparency, and governance as the 2030 deadline for the United Nations Sustainable Development Goals (SDGs) approaches. A new publication, G20 Call to Action 2024: Building a Just World & a Sustainable Planet, underscores the essential role high-quality sustainability information, reporting and assurance play in achieving global sustainability targets.   Did you know Dublin is currently the 3rd most congested city in Europe due to its heavy reliance on private vehicles, which contributes to air pollution and compromises Ireland’s sustainability goals (particularly Goal 11: Sustainable Cities & Communities). This is according to the recently published Capital City, the first report from the Dublin City Taskforce established by Government in May 2024 to view measures required to rejuvenate Dublin City Centre. FC Barcelona is to host first-ever carbon neutral general assembly. As part of its 2026 Strategic Plan focused on sustainability, the club will measure and compensate for greenhouse gas emissions from all activities related to the event, including transportation, energy use, and catering. Articles Sustainable practices power business growth (Accountancy Ireland - Briefly) Employers face a rising climate conundrum - Younger workers in unexpected places are pressing their firms to take serious action on emissions (FT) How the accountancy sector can boost business support for the SDGs (Sustainable Views - FT) New York officials call for big oil to be prosecuted for fuelling climate disasters (The Guardian) Irish firms less worried about geopolitical disruption than counterparts abroad (The Irish Times) CCAC urges end to subsidised fossil fuels, says failure to meet EU targets 'could cost Ireland €8bn' (The Journal) The Offsets Whack-a-mole (Bloomberg Green) New Resources Accountancy Europe has published its Accountancy Europe Sustainability Update - October. Highlights including CEAOB issuing guidelines on limited assurance and IAASB approves its global sustainability assurance standard Donal Daly, Ingrid De Doncker and a team of authors have published The Customer is the Planet: A handbook for sustainable business. Available on Amazon in paperback and, hardback and Kindle, this book’s structure mimics the European Sustainability Reporting Standards and explains the why, what, so what, of the problem or opportunity in each key area of sustainability. Upcoming Events Convention on Biological Diversity, COP16 Date: Oct 21-Nov 1 Location: Colombia   Chartered Accountants Ireland, Practical considerations for preparing for CSRD implementation In the third of our series on EU sustainability reporting, join Dee Moran, Chartered Accountants Ireland and guest, as they review some of the practical challenges that companies have faced in preparing to comply with the CSRD. Virtual, 6 November, 10-11   Chartered Accountants Ireland, Risk, Governance and Leadership Conference 2024 (ROI/NI) This conference includes a section on sustainability supply chain due diligence and value chain reporting Virtual, 7 November, 9.30-13.30   Dublin Chamber, Sustainable Business Practices - Strengthening Customer Connections Designed for professionals in customer-facing roles, this workshop will provide the tools to incorporate sustainability into customer engagement strategies, leading to improved satisfaction and loyalty. Virtual, 15 November, 9.30-12.30   IAFA & IAASA  Integrating Sustainability Reporting and Assurance into Accounting Education Conference The conference is a collaboration between IAFA and the Irish Auditing and Accounting Supervisory Authority (IAASA) and aims to build awareness of the implications of sustainability reporting & assurance for accounting education, and to foster meaningful dialogue & collaboration among stakeholders to drive positive change. In person, 1 November, Maynooth University   Accountancy Europe, Shaping the future of sustainability assurance engagements Join Accountancy Europe and the International Federation of Accountants (IFAC) to discuss the latest developments in the world of sustainability assurance. In this webinar, you will hear insights from the International Auditing and Assurance Standards Board (IAASB), the Committee of European Auditing Oversight Bodies (CEAOB) and the Nordic Federation of Accountants. Virtual, 12 November, 15.00-16.45 (Brussels Time)   iQuest & Business Post, ESG Autumn Summit Date: Nov 20th Location: Croke Park     Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next meeting: November 27, 14:00-15.30 Zoom If you would like to attend, please email sustainability@charteredaccountants.ie     You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

A history of the golf society, prepared for our centenary celebrations in September 2023 is available to download here. To read our blog about the event click here and you can view the photos here.