Explore the impact of Budget 2024 on SMEs with our comprehensive blog covering tax, accounting, and immigration insights.
Let’s dive in on the Budget 2024 Impact on SMEs in this article.
Welcome back to our Budget 2024 series! In this second installment, we delve into the key aspects of the budget that directly impact SMEs and highlight various supports for enterprises.
In this article we will discuss changes on the following reliefs:
- Employment Investment Incentive Scheme (EIIS) Updates
- Key Employee Engagement Programme (KEEP)
- Revised Entrepreneur Relief and New Capital Gains Tax Relief for Angel Investors
- Retirement Relief Modifications
- Funding and Advisory Programmes
- Conclusion
Employment Investment Incentive Scheme (EIIS) Updates:
- Minister McGrath’s Budget speech revealed significant amendments to the Employment Investment Incentive Scheme (EIIS). Starting January 1, 2024, investors can benefit from a standardized 4-year holding period, with an increased relief limit of €500,000. We’re closely monitoring changes to the EU General Block Exemption Regulation (GBER) and its impact on EIIS, ensuring our clients stay ahead of the curve.
Key Employee Engagement Programme (KEEP):
- Good news for businesses! The awaited EU State aid approval for Finance Act 2022 amendments to KEEP has been received. These amendments extend the scheme to 2025, double the lifetime company limit to €6 million, and enable favorable Capital Gains Tax (CGT) treatment for buybacks. We’re ready to help you maximize the benefits of KEEP for your key employees.
Revised Entrepreneur Relief and New Capital Gains Tax Relief for Angel Investors:
- While no changes were announced for Revised Entrepreneur Relief, the Minister expressed the intention to refocus the relief for founders and entrepreneurs. Excitingly, a new relief for angel investors in innovative start-ups is introduced, offering an effective reduced CGT rate of 16%. We explore how these reliefs align with our advocacy for encouraging investment in Irish SMEs and start-ups.
Retirement Relief Modifications:
- Changes to retirement relief from Capital Gains Tax (CGT) are on the horizon. From January 1, 2025, the upper age limit increases to 70 years, and a new €10 million limit on relief for disposals to a child is introduced. Stay tuned as we guide you through the implications of these modifications, ensuring your retirement plans align with the evolving landscape.
Funding and Advisory Programmes:
- Minister Simon Coveney announced new funding and advisory initiatives as part of Budget 2024. The Increased Cost of Business Scheme (ICOB) not only offers a once-off grant to benefit SMEs but also strategically addresses additional business costs. In this way, businesses can navigate financial challenges more effectively, gaining crucial support through ICOB. As part of our accounting practice’s commitment to keeping you informed, we delve into the nuances of ICOB, shedding light on its potential impact on small and medium-sized enterprises. Our team is ready to guide you through accessing these programs, supporting your business’s financial resilience.
Conclusion:
At Portobello Spring, we’re here to empower your financial success in every phase of your journey.
Disclaimer: The information in this blog post is intended for general informational purposes only and should not be construed as professional advice. It is your responsibility to seek professional advice tailored to your specific situation.
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