While Budget 2025 is clearly pitched as a general election budget and not as a business budget, ISME welcomes a number of measures that have been announced for businesses and employees.
Neil McDonnell, Chief Executive, ISME said: “The infrastructure spending commitments are most welcome, but we recognise that there are significant capacity constraints to realising this in the current economic climate. The commitment to maintain VRT relief on EVs will hopefully ensure that business continues to invest in decarbonising its fleet. The commitment to increase spending on training and upskilling in SMEs is welcome, as the national training fund is financed by employers’ PRSI, but we have yet to see the detail.”
ISME specifically welcomes the following measures for businesses and employees:
- The increase in the Personal, Employee and Earned Income Credits, of €125
- The increase in the Standard Rate Cut Off Point of €2,000 to €44,000, however, ISME notes that the average industrial wage is now just over €50,000, meaning €6,000 will still be taxed at the marginal rate.
- The reductions in USC, the 4.0% rate to 3%. This represents the second consecutive reduction to this rate
- The 2% USC ceiling band has now been increased by 34% or €6,898 from €20,484 to €27,382
- The small benefit exemption from €1,000 to €1,500 in up to five tranches.
On the Entrepreneurial side, the following are welcomed by ISME:
- The Employment Investment Incentive (EII) relief is raised from €500,000 up to €1 million.
- Start-Up Relief for Entrepreneurs (SURE) is raised from €700,000 to €980,000.
- Capital Gains Tax relief targeted at investors in innovative start-ups to provide will see their lifetime limit raised from €3 million to €10 million.
- Listing relief of up to €1m for Irish businesses will stop the decline in the Irish stock market, as will the stamp duty relief.
- Section 481 relief increases recognise the contribution of the audio visual sector in Ireland.
The substantial watering down of the proposal to levy CGT on the transfer of family businesses worth over €10m is sensible
