Budget 2025: Business measures at a glance
Chambers Delivers 2025 Budget Jack
A summary of the budget measures announced today that impact businesses.
As of January 1, the national minimum wage will increase by €0.80 per hour to €13.50 per hour.
An increase from €1,000 to €1,500 for an employer to provide limited non-cash benefits or rewards to their workers without the payment of income tax, PRSI and USC.
Extension for a further year of the universal relief of €10,000 to the Original Market Value (OMV) of company cars. Employees with an electric company vehicle will have an overall BIK relief of €45,000 in 2025 which comprises of the €35,000 electric vehicle-specific relief plus the additional temporary universal relief of €10,000. A BIK exemption is also being introduced for the provision of electric vehicle chargers at the home of a director or employee.
Capital Gain Tax Retirement Relief: Retention of the increased upper age limit and introduction of a clawback period of 12 years for relief available for disposals over €10m, after which the CGT will be abated.
Amending the Capital Gains Tax relief targeted at investors in innovative start-ups to provide for an increased lifetime limit on gains to which the relief applies from €3m to €10m.
R&D: An increase in the first-year payment threshold in the R&D tax credit, from €50,000 to €75,000 for companies undertaking smaller R&D projects or engaging with the credit for the first time.
Extension to the end of 2026 of the Employment Investment Incentive, the Start-Up Relief for Entrepreneurs and the Start-Up Capital Incentive.
Doubling the amount an investor can claim relief on under the Employment Investment Incentive from €500,000 up to €1m. Increasing the relief available under the Start-Up Relief for Entrepreneurs from €700,000 to €980,000.
Raising the VAT registration thresholds that apply for the supply of goods and services, which are currently €80,000 and €40,000 respectively, to €85,000 and €42,500 respectively.
A new relief for expenses incurred in connection with a first listing on an Irish or European stock exchange, subject to a cap of €1m.
An extension of the Bank Levy for a further year, with a target yield of €200m. The Minister for Finance may not statement on extending the levy to include digital banks like Revolut.
The NTF is in surplus due to the growth in the numbers at work and increased employers’ PRSI receipts. The Minister announced a six-year programme to spend the €1.5bn fund to increase the number of healthcare and veterinary places, an increase in certain PhD stipends and €78m to further grow the craft apprenticeship system.