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Budget 2025 Summary

02 October 2024
Type Report


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Kevin Connolly, Teagasc Financial Management Specialist, gives a summary of the main Budget measures plus an outline of other tax changes implemented recently which impact the farming sector.

Main Headline Items

  • The income tax standard rate bands have been increased by €2,000. The income tax rates (20% & 40%) have not been changed.
  • There has been a €125 increase in the principle tax credits.
  • The rate applying to the middle USC band has been reduced from 4% to 3% . There has also been a realignment of the bands.
  • PRSI rates are due to increase by 0.1% from 1st October 2024.
  • The three Stock Relief measures have been further extended
  • Changes will kick in from 1 Jan 2025 to the Capital Gains Tax (CGT) Retirement Relief upper limits with changes to the upper age from age 66 to age 70 where limits are reduced. The €10 million limit applying to transfers from parent to child will also carry a longer clawback period to be complied with by the recipient.  The €10 million limit applying to transfers from parent to child will be set aside for the CGT on such disposals where the recipient retains the assets for 12 years.
  • The Capital Acquisitions Tax (CAT) thresholds have been increased  with effect from 02 October with no change in the rate. A change has been made to Agricultural Relief whereby the Active Farmer conditions will also apply to the donor with transitional arrangements on the term in place until 31 December 2030. 
  • A new residential Stamp Duty rate will apply from 2 October on properties with a value greater than €1.5 million.
  • The existing relief from Stamp Duty on certain farmland leases will now also be available to company lessees subject to certain criteria.
  • The VAT flat rate farmer addition rate is to increase from 4.8% to 5.1% from 1st January 2025 There are also changes to the VAT registration thresholds.
  • There have been significant changes to Social Protection Payments for 2025 with a general €12 weekly increase applied. Some additional once off cost of living support payments have also been announced.
  • Additional funding has been allocated for specific measures relating to Agriculture.

This summary is based on the author’s interpretation of the relevant Budget and Finance Bill measures and should not be taken as a definitive interpretation of these measures. For all individual tax queries you are advised to seek professional tax advice from your own accountant/ tax adviser.