Budget Report 2023

Fitzgerald Power’s Overview:

Described by Paschal Donohoe as a “Cost of Living Budget”, Budget 2023 has focused on helping individuals and businesses deal with the inflation crisis. The Minister hopes to alleviate inflationary pressures without adding fuel to the fire – the success of which will only be possible to judge at a later date.

There was lots of pre-Budget talk about a new 30% income tax rate which hasn’t materialised. Instead, the Minister opted to leave the existing rates in place but has increased the standard rate bands. While Kwasi Kwarteng’s Budget strategies appear cavalier at best, Ireland’s competitiveness from an income tax perspective will be judged, at least in part, relative to our nearest neighbour. 

Elsewhere, there was a strong focus on minimising the impact of the high rate of current inflation, with taxpayers being supported by increased tax credits, and a wider 20% band. In addition, a new yearly tax credit of €500 is to be introduced for renters in the private rental sector, with relief for rent paid in 2022 to be claimed next year.

From a business perspective, the small benefits exemption has been increased so an employer can now give employees up to 2 non-cash benefits tax-free each year subject to an overall maximum of €1,000. We also include an overview of the €1.4bn allocated to the new Business Energy Support Scheme (BESS).

There were welcome extensions to the KEEP and SARP schemes and some amendments to the R&D Tax Credit scheme to align with international norms and definitions.

Download our report here, for your own sake if nothing else, and see how this year’s Budget benefits you.

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