The 2024 Autumn Budget announced a series of changes to UK Inheritance Tax. As you’re aware, in the UK, Inheritance Tax is a tax payable on the value of a deceased person’s estate. This differs to Irish Capital Acquisitions Tax where the beneficiary pays CAT on gifts and/or inheritances.
Currently, UK IHT is charged at 40% on the value of an estate above the tax-free allowance i.e. the Nil Rate Band of £325,000. This tax-free allowance can be further increased by a Residential Nil Rate Band of £175,000 providing you leave your home to direct descendants i.e. children, step children, grandchildren, etc. As a result, this brings up the total tax-free allowance to £500,000 per person. In certain circumstances, this could potentially equate to £1 million for a couple. These thresholds were fixed until April 2030 in the Autumn Budget. If, however, your estate is worth less than £325,000 when you die, then any unused amount up to the threshold limit can be added to the surviving spouse’s/partner’s threshold amount.
From 6th April 2025, the rules for taxing non-UK domiciled individuals will be replaced by a tax residence-based system. This will apply to long-term residents owning non-UK property who were previously outside the scope of UK Inheritance Tax. UK assets will always remain within the scope of inheritance tax. Therefore, from 6th April 2025 onwards, individuals who have held non-domicile status will no longer be exempt from Inheritance Tax on their foreign assets. Instead tax will be based on the individual’s residency status.
Non-UK assets will be within the scope of UK Inheritance tax if an individual qualifies as a long-term resident. This means that anyone who has been resident in the UK for ten out of the last twenty years will be subject to Inheritance Tax on their worldwide assets. This is assessed using the same statutory residence test currently applied for Income Tax and Capital Gains Tax purposes. It’s important to keep in mind that where an individual ceases to be UK resident after 6th April 2025, there will be an “IHT tail.” This effectively means that an individual can remain within the scope of UK Inheritance Tax, on their worldwide assets, for a period of up to ten years after ceasing their UK residence.
In summary, from 6th April 2025, the concept of domicile will no longer determine exposure to inheritance tax. Instead, it will be replaced with the concept of a long-term resident.
https://www.gov.uk/inheritance-tax
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
Inheritance Tax, UK IHT, UK Taxes, Agricultural Property Relief, Business Property Relief, Gift and Inheritance Tax
The UK Autumn Budget 2024 announced changes to the current Agricultural and Business Property Inheritance Tax regimes. From 6th April 2026, the combined Agricultural Property Relief and Business Property Relief will be restricted to the first £1 million on “qualifying assets.” The Chancellor of the Exchequer delivered her Budget on 30th October 2024, announcing 100% relief for the first £1 million pounds of combined assets and 50% Relief thereafter. Currently, Agricultural Relief offers two potential rates of Inheritance Tax Relief. These depend on the circumstances of ownership. These rates will remain in place until 5th April 2026.
Agricultural Property Relief is an Inheritance tax relief for farmers and landowners. It provides for either 50% or 100% relief on the agricultural value of land and certain buildings.
For the 100% Relief to apply:
The 50% Relief is available in circumstances where the above conditions aren’t met.
If the property is owner-occupied, it must have been owned and used for agricultural purposes for at least two years ending with the date of the transfer. If, however, the property is let to a tenant, it must have been owned by the transferor for at least seven years, ending with the date of the transfer, and the land must have been actively farmed during that time. The property must not be subject to a binding contract of sale on disposal.
Additional rules apply in relation to successive transfers.
Agricultural property includes agricultural land or pasture, grazing land, cottages, farmhouses, farm buildings, woodlands and buildings used in intensive animal rearing, etc.
Business Property Relief is a relief from IHT which applies to the transfer of relevant business property. 100% relief is available on the following assets (i) a business or interest in a business operating as a sole trade or partnership and (ii) shares in an unlisted trading company which the donor has owned for a minimum of two years
50% Relief is available on the transfer of shares in a quoted trading company where the donor has a controlling interest (i.e. 51%) in the company. The 50% rate also applies to land and buildings, including plant and machinery, where those assets are used by the donor’s partnership or by a company they control.
With regard to lifetime gifts, Business Property Relief is only available on death provided the donee still owns the relevant business property at the time of death.
If the business owns investments, Business Property Relief is restricted to the business assets. In other words, BPR does not apply to any ‘excepted assets’ in the balance sheet. An ‘excepted asset’ is one which is not used wholly or mainly for the purposes of a trade.
From 6th April 2026, the combined Agricultural Property Relief and Business Property Relief will only be available on the first £1 million on qualifying assets. If the individual owns qualifying assets above this threshold amount of £1 million, the rate of the Relief will be reduced to 50% of the excess. This means, from 6th April 2026, an effective IHT tax rate of 20% will apply to the value of qualifying assets above £1 million.
Assets automatically qualifying for the 50% relief rate will not use up the £1 million allowance.
It’s important to keep in mind that any unused part of the £1 million allowance cannot be transferred between spouses in the way that the NIL Rate Band can.
This allowance will not apply to AIM-listed shares and other similar shares not listed on a recognised stock exchange. Instead, they will be entitled to the 50% rate of Relief.
The new rules will apply for lifetime transfers on/after 30th October 2024 in situations where the donor dies on/after 6th April 2026.
The Inheritance Tax liability arising on assets which qualify for Agricultural Property Relief and Business Property Relief can be paid by way of equal annual instalments, over a ten-year period, in certain circumstances.
Full exemptions for transfers between spouses and civil partners will continue to apply i.e. any agricultural and business assets left to a surviving spouse or civil partner will be tax free.
https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
As part of the Irish Revenue Commissioners’ Annual Non-Filer Programme, Notices will be sent to taxpayers who are currently registered for Income Tax or Corporation Tax but who have not filed Income Tax or Corporation Tax Returns for tax years up to and including 2023. Tax Agents will receive a ROS Inbox Notification on 31st January 2025 providing them with a list of clients who have been issued with a Reminder to File Notice. Please be aware that this notice is what is deemed to be a Level 1 Compliance Intervention.
If you have received a Notice but you are no longer considered to be a “Chargeable Person”, the advice is to cancel your Income Tax or Corporation Tax registration as soon as possible.
For full information on who is deemed to be a “Chargeable Person” please click:
According to Revenue’s “Reminder to file – Income Tax Return” Notice:
“This notice is a Level 1 Compliance Intervention in accordance with Revenue’s Compliance Intervention Framework. The non-filing of a required tax return by chargeable persons can result in a penalty charge and a more detailed review by Revenue. It is also an offence for which a person can be prosecuted. Further information on your rights and obligations under Revenue’s Compliance Intervention Framework can be found on www.revenue.ie.
In addition, if the tax return(s) is not filed it may lead to the loss or refusal of tax clearance.”
According to Revenue’s “Reminder to file – Corporation Tax Return” Notice:
This notice is a Level 1 Compliance Intervention in accordance with Revenue’s Compliance Intervention Framework. The non-filing of a required tax return can result in a more detailed review by Revenue. It is also an offence for which a person can be prosecuted. It can also result in the restriction of certain reliefs, and the loss or refusal of tax clearance. Further information on your rights and obligations under Revenue’s Compliance Intervention Framework can be found on www.revenue.ie.
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
Auto-enrolment Pension Scheme. Payroll. Retirement Pension. No Income Tax Relief. Employers, Employees and Directors
Today, 7th October 2024, the Minister for Social Protection announced that the pensions auto-enrolment scheme will commence on 30th September 2025. From that date, employers must automatically enroll eligible workers into a workplace pension scheme, as part of a Government initiative, aimed at boosting retirement savings. This government retirement savings system is for employees who are not already contributing into a pension scheme through their payroll. The Automatic Enrolment Retirement Savings Systems Act 2024 was signed into law on 9th July of 2024 and a commencement order was signed on 30th September 2024. This scheme involves mandatory employer and employee contributions into a pension fund in addition to a Government top up. With this new auto-enrolment scheme, most workers will now be entitled to (i) their own pension plus (ii) the State Pension on retirement.
Under this new Act:
The scheme is aimed at employees who are not paying into a qualifying pension plan. Therefore, an ‘exempt employment’ is deemed to be one where an employee or employer is already making contributions, through the payroll system, to any of the following: (a) an occupational pension scheme, (b) Personal Retirement Savings Account, (c) a Retirement Annuity Contract or (d) a Pan-European Personal Pension Product.
Contributions to the auto-enrolment pension scheme will be based on a set percentage of your wage/salary (please see below) and deducted through payroll.
Employers must match their employee contributions.
The Government must match one third of the employee contribution.
The Contributions will gradually increase over a ten year period.
The employee contributions will not qualify for income tax relief.
Contributions are capped at €80,000 of an employee’s gross annual salary/wage. In other words, an upper annual limit of €80,000 applies to earnings. No contributions are required on earnings exceeding this cap. Employees earning more than €80,000 per annum can still contribute, however, employer and Government contributions will not apply to earnings above €80,000.
No. of Years
|
Employee Contribution |
Employer Contribution |
Government Contribution |
1 to 3 | 1.5% | 1.5% | 0.5%
|
4 to 6 | 3% | 3% | 1%
|
7 to 9 | 4.5% | 4.5% | 1.5%
|
10+ | 6.0% | 6.0% | 2.0%
|
For further information, please click:
https://www.irishstatutebook.ie/eli/2024/act/20/enacted/en/html
https://www.youtube.com/playlist?list=PLfOMyQE5RqGzeqOMKqB1M3KyOCtKU8bjk
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
The Minister for Finance Jack Chambers published his first Budget today announcing a number of changes to our corporate tax regime. A raft of tax measures and policies will be introduced to support Irish start-ups, small and medium-sized enterprises (SMEs) and multinational businesses. Budget 2025 provided for a total budget package of €10.5b Our focus in this article is purely on Business Taxes under Capital Gains Tax, Corporation Tax, VAT and Employer/Employee Taxes.
SMALL BENEFIT EXEMPTION
BENFIT-IN-KIND
Retirement Relief
Retirement Relief (CGT) supports the cost effective / tax efficient transfer of businesses and farms from one generation to the next.
Finance Act 2023 introduced a number of amendments to the Retirement Relief regime which included:
These changes were to come into effect on 1st January 2025.
Budget 2025 will retain the increased upper age limit. It also introduced a clawback period of twelve years on the Relief.
This means that any tax arising due to the cap of €10 million will be abated provided the assets are retained for twelve years.
In other words, the €10 million cap, due to be introduced on 1st January 2025, will only apply in circumstances where the child disposes of the assets within twelve years.
Angel Investor Relief
Angel Investor Relief, introduced in Budget 2024, was aimed at encouraging business angel investment in innovative start-ups.
Finance Act 2023 introduced a reduction on this rate for angel investors, bringing it down from 33% to 16% or 18%.
Budget 2025 provides Capital Gains Tax Relief for a third party individual who takes a significant minority shareholding (i.e. between 5% and 49% of the ordinary issued share capital of the company) for a period of at least three years, in a certified innovative start-up small and medium enterprise (SME) company which is less than seven years old. The investment by the individual must be in the form of fully paid-up newly issued shares costing at least €20,000 or €10,000 if acquiring between 5% and 49% of the ordinary issued share capital of the company.
Qualifying investors will be able to avail of an effective reduced rate of CGT of 16%, or 18% if through a partnership, on a gain up to twice the value of their initial investment.
There was previously a lifetime limit of €3 million on gains to which the reduced rate of CGT will apply. Budget 2025 has increased this limit to lifetime gains of up to €10 million.
Therefore, the amount on which the reduced CGT rates of 16% or 18% will apply is the lowest of the following:
The following will be extended for a further two years until 31st December 2025:
In addition, the EII limit on the amount that an investor can claim relief on will be doubled i.e. increasing from €500,000 to €1,000,000.
It is proposed to increase the SURE relief available to a maximum of €140,000 per year or a total of €980,000 over seven years.
Research and Development (R&D) Tax Credit
As you’re aware, the existing Research and Development (R&D) Tax Credit provides a 30% tax credit for all qualifying R&D expenditure.
The first year payment threshold will now increase from €50,000 to €75,000.
Companies with claims of between €75,000 and €150,000 will benefit from a €25,000 increase in the first instalment of their claim.
Companies with claims of in excess of €150,000 will continue to receive a first instalment amount based on 50% of the Research & Development Tax Credit claim.
Two new Audio-visual incentives
A new tax credit will be introduced for the unscripted film production sector.
The relief will take the form of a 20% Corporation Tax Credit for certain production expenditure up to a maximum limit of €15 million per project.
The commencement will be subject to State Aid approval from the European Commission.
A cultural test will be introduced.
The second incentive is an 8% uplift referred to as the “Scéal Uplift”.
This involves an uplift of 8% to the existing film credit in respect of certain feature film productions.
It will be applied to the existing film credit and will result in a tax credit rate of 40% for projects with a maximum qualifying expenditure of up to €20 million.
This incentive is for small to medium budget productions under the Section 481 film tax credit.
As with the Tax Credit for Unscripted Productions, the Scéal Uplift is subject to State Aid approval.
A new Participation exemption for foreign sourced dividends from subsidiaries in EU/EEA and tax treaty jurisdictions will be introduced with effect from 1st January 2025. The aim is to simplify existing Double Taxation Relief provisions.
Currently, Ireland operates a worldwide corporate tax regime. This means that all the profits (both domestic and foreign) earned by an Irish resident company are subject to Irish tax with Relief for any foreign taxes deducted under, a ‘tax and credit’ regime.
Under the new rules, a company will have the option of either (a) claiming the participation exemption or (b) continuing to use existing tax-and-credit relief.
To do this, an election will have to be made in the company’s annual corporation tax return. It will apply to all qualifying dividends in that particular period.
For non-qualifying jurisdictions, the existing method of claiming double taxation relief should continue.
The new participation exemption for foreign source dividends will come into effect from 1st January 2025.
For full information on Budget 2025, please click https://www.gov.ie/en/publication/e8315-budget-2025/
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
Understand the Tax measures of Budget 2025 which relate to property transactions, at a glance.
Today, the Minister for Finance and the Minister for Public Expenditure, NDP Delivery and Reform, announced the details of Budget 2025.
As anticipated, Budget 2025 introduced several tax measures in relation to property.
This article will focus on the property related tax measures introduced by Budget 2025, under Income Tax/Personal Tax, Residential Zoned Land Tax (RZLT), Stamp Duty, Vacant Homes Tax (VHT) and Value Added Tax (VAT).
A new 6% rate of Stamp Duty has been introduced on residential properties from 2nd October 2024.
The stamp duty rates for residential properties will now be as follows:
The existing stamp duty rates will continue to apply to instruments executed before 1st January 2025 on foot of a binding contract in place before 2nd October 2024.
For full information on Budget 2025, please click https://www.gov.ie/en/publication/e8315-budget-2025/
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
In the United Kingdom, the tax year commences on 6th April and ends on the following 5th April. HMRC have published a set of criteria which outlines the taxpayer’s requirements in order to accurately and correctly complete a self-assessment tax return. For further information please click link: https://www.gov.uk/log-in-file-self-assessment-tax-return
You are required to file a self-assessment form if you are a self-employed individual or if you receive untaxed income, for example, from rental properties. In other words, the self-assessment system applies to any individual whose income is not automatically taxed at source. To check if you need to file a self-assessment tax return please click: https://www.gov.uk/check-if-you-need-tax-return
For the 2023/24 tax year, taxpayers in receipt of PAYE earnings of up to £150,000 are no longer required to file a self-assessment tax return, provided, of course, that they do not meet any of the other self-assessment criteria outlined by HMRC.
The self-assessment deadline is 31st January 2025 for online submissions, however, if you submitted a paper tax return, the deadline was 31st October 2024. Please keep in mind that the tax is still due by 31st January 2025.
Online Tax Returns must be filed and all outstanding tax paid on or before 31st January following the end of the tax year.
In other words:
Failing to file your tax return or pay your taxes by the appropriate date can result in penalties. Missing the 31st January deadline comes can result in significant penalties even if no tax is owed. For full details, please click: https://www.gov.uk/self-assessment-tax-returns/penalties
In summary, missing any of the Self-Assessment deadlines can result in penalties and interest. A delay in filing your Tax Return by a single day can result in a £100 fine, even if you don’t actually owe any tax.
You can register for self-assessment through the HMRC website before the deadline of 5th October. For further information, please click: https://www.gov.uk/register-for-self-assessment
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
The Income Tax Return filing deadline is 31st October 2024. That deadline date is extended to 14th November 2024 provided you file both (a) your Income Tax Return and (b) your Income Tax Balance due for 2023 plus your 2024 Preliminary Tax.
When preparing your 2023 Income Tax Return, here are some Tax Reliefs you may not have considered before:
You could be entitled to the Childminder’s Tax Relief if:
No tax will be payable on the childminding earnings received, provided the amount is not more than €15,000 per annum.
As you cannot deduct any expenses, there is no requirement to maintain and keep detailed accounts.
If another person provides childcare services with you in your home, the €15,000 income limit is divided between you.
Despite the fact that you may have no Income Tax liability, you are obliged to file a Form 11 Tax Return by 31st October 2024 or 14th November 2024, whichever is relevant to you.
If, however, the childminding income exceeds the €15,000 annual threshold, the total amount will be taxed as normal under the self-assessment rules.
For further details, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-29.pdf
The Rent Tax Credit was introduced in Budget 2023 which is available for the tax years 2022 to 2025 inclusive.
In Budget 2024, the Rent Tax Credit was increased by €250.
When completing your 2023 Form 11 Tax Return the rent tax credit is worth a maximum of €500 per year from 2023 for a single individual and €1,000 for a married couple.
The rent tax credit is calculated as 20% of the rent paid in the year and is capped at €500 for a single person or €1,000 for a couple who are jointly assessed to tax.
When calculating your 2024 Preliminary Tax liability, the rent tax credit increases to €750 for a single individual and €1,500 for a married couple.
Please be aware that the claim must relate to rental payments which both (a) fell due and (b) were actually paid during the tax year of assessment.
This tax credit will only be available to taxpayers who are not in receipt of any other housing supports.
For further details, please click: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-credit/index.aspx
Relief is available for fees between €317 and €1,270 paid in respect of Information Technology and Foreign Language courses which are on Revenue’s list of approved Courses.
To check the eligibility of your course, please click the following links:
These courses must be at least two years in duration and must not be a postgraduate course. Instead postgraduate courses in foreign languages or information technology may qualify for tuition fees relief. For further details, please click the following link: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/index.aspx
This relief applies to fees if you are the student or if you have paid fees on behalf of another person.
For complete information, please click: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/foreign-language-and-it-courses/index.aspx
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
As you’re aware, the Income Tax / self-assessment Tax Return filing deadline is 31st October 2024.
There is an extension to 14th November 2024 providing you file both (i) your 2023 Income Tax Return and (ii) the Income Tax Balance due for 2023 as well as your 2024 Preliminary Tax payments though ROS.
You should register for Income Tax self-assessment if:
You are obliged register for Income Tax purposes if
If you do not use ROS to file your Income Tax Return , the tax deadline remains 31st October 2024.
The Non-Resident Landlord Withholding Tax (NLWT) system came into operation on 1st July 2023.
Collection agents of non-resident landlords may opt to use the NLWT system.
The 2023 Form 11 Income Tax Return contains a new section that should be pre-populated, providing the gross rental income figure and the withholding tax which have been processed through the NLWT.
For further information, please click: https://www.revenue.ie/en/property/rental-income/nlwt/index.aspx
For complete information, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-45/45-01-04.pdf
This credit was introduced for 2023 only.
This tax credit is for taxpayers who have made payments in respect of a qualifying loan for a principal private residence.
A new section has been added to 2023 Form 11 Tax Return for the purposes of claiming of the Mortgage Interest Tax Credit.
The relief is available to homeowners, who as of 31st December 2022, with an outstanding mortgage balance of between €80,000 and €500,000 and meet the necessary conditions.
For further information, please click: https https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/mortgage/index.aspx
For complete information, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-11B.pdf
If you fail to meet the October 31st Income Tax Return deadline, you could be liable to an interest charge for each day you’re late. Statutory Interest on the overdue tax liability is calculated at 0.0219% per day or part thereof.
This is in addition to a surcharge:
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
Changes to Company Size – Micro Company, Small Company, Medium sized Company, Large Companies and Groups
Today the Minister for Enterprise, Trade and Employment, Peter Burke TD, signed into law the “European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024.” This resulted in increases in the balance sheet and turnover thresholds for ‘micro’, ‘small’, ‘medium’ and ‘large’ companies in the Companies Act 2014 by circa 25%. The effect of this change in size is that more companies will move into the micro and small categories and, as a result, benefit through (i) abridged reporting requirements and (ii) the audit exemption.
On 24th December 2023, the EU Delegated Directive (2023/2775/EU) came into force. It increased the total balance sheet and turnover thresholds for micro, small, medium and large companies, including groups, as set out in the Companies Act 2014, by approximately 25% to account for inflation. The measures will apply for financial years beginning on/after 1st January 2024. This will enable companies to benefit immediately from the adjusted thresholds. Companies can elect to apply the new thresholds either (i) to financial years beginning on/after 1st January 2024 or (ii) to financial years beginning on/after 1st January 2023.
E.U. member states have until 24th December 2024 to bring this legislation into effect.
Today, 19th June 2024, Minister for Enterprise, Trade and Employment, Peter Burke, TD signed into law the European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024 (S.I. No. 301 of 2024) which comes into operation on 1st July 2024.
These size thresholds are contained in sections 280A to 280I of the Companies Act 2014.
Company size is typically determined by the company meeting two out of the three size criteria. Other relevant factors also apply.
These adjustments will result in more companies being categorised as micro or small which will, as a result, benefit from the abridgement and audit exemption. These changes are to apply to financial years commencing on or after 1st January 2024.
The increased size criteria/thresholds are as follows:
Please click for Regulations: https://www.irishstatutebook.ie/eli/2024/si/301/made/en/pdf
For associated articles, please click:
Annual Return for Companies – Ireland – Accounts Advice Centre
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.