Pearse Doherty (Donegal, Sinn Fein)
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51. To ask the Minister for Finance the first- and full-year cost of the measure to increasing the 2% USC ceiling by €1,622; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40525/24]

Pearse Doherty (Donegal, Sinn Fein)
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52. To ask the Minister for Finance the first- and full-year cost of reducing the 4% USC rate to 3% each year under 2030; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40526/24]

Pearse Doherty (Donegal, Sinn Fein)
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53. To ask the Minister for Finance the first- and full-year cost of the increase of €2,000 in the income tax standard rate cut-off point; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40527/24]

Pearse Doherty (Donegal, Sinn Fein)
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54. To ask the Minister for Finance the first- and full-year cost of the increase of €125 in the personal tax credit; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40528/24]

Pearse Doherty (Donegal, Sinn Fein)
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55. To ask the Minister for Finance the first- and full-year cost of the increase of €125 in the employee tax credit; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40529/24]

Pearse Doherty (Donegal, Sinn Fein)
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56. To ask the Minister for Finance the first- and full-year cost of the increase of €125 in the earned income credit; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40530/24]

Pearse Doherty (Donegal, Sinn Fein)
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57. To ask the Minister for Finance the first- and full-year cost of the increase of €150 in the home carer tax credit; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40531/24]

Pearse Doherty (Donegal, Sinn Fein)
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58. To ask the Minister for Finance the first- and full-year cost of the increase of €150 in the single person child carer tax credit; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40532/24]

Pearse Doherty (Donegal, Sinn Fein)
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59. To ask the Minister for Finance the first- and full-year cost of the increase of €300 in the incapacitated child tax credit; and if he will make a statement on the matter. [40533/24]

Pearse Doherty (Donegal, Sinn Fein)
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60. To ask the Minister for Finance the first- and full-year cost of the increase of €300 in the blind person’s tax credit; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40534/24]

Pearse Doherty (Donegal, Sinn Fein)
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61. To ask the Minister for Finance the first- and full-year cost of the increase of €60 in the dependent relative tax credit; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40535/24]

Jack Chambers (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 51 to 61, inclusive, together.

I am advised by Revenue that all estimates are made on a pre-Budget 2025 basis, as the measures outlined by the Deputy pertain to the Income Tax and USC package outlined in Budget 2025. The Deputy will wish to be aware that the estimated number of taxpayer units benefitting from a measure, as well as the estimated tax cost, as set out below, relate to those benefitting from each policy change in isolation and on a standalone basis. Taken together as a combined Income Tax and USC package, the number of beneficiaries and tax cost for any particular policy change will differ, due to the interactive nature of the tax system, as certain policy changes can act to reduce the tax liability to zero for some taxpayers before another individual policy measure is applied.

The estimated number of beneficiaries is provided as a count of taxpayer units benefitting, a taxpayer unit includes jointly assessed taxpayers as one unit. For these taxpayers it is not possible to provide information on the number of individuals benefitting, as jointly assessed taxpayers avail of tax band and credit sharing.

Pearse Doherty (Donegal, Sinn Fein)
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62. To ask the Minister for Finance the first- and full-year revenue of an increase to residential stamp duty to 5% and 6% respectively on properties over €1,000,000, taking account of the announced chances in Budget 2025 in relation to stamp duty; and if he will make a statement on the matter. [40536/24]

Jack Chambers (Dublin West, Fianna Fail)
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I announced on Budget Day that a new 6% rate of Stamp Duty will be applied to the value of residential property in excess of €1.5 million (so increasing the rate applied to that element of a property's value from 2% to 6%), and that the higher rate of Stamp Duty on bulk acquisitions of houses is to be increased from 10% to 15%. Both of the increased rates apply to all relevant instruments of transfer executed after midnight on 2 October 2024.

I also announced on Budget Day that transitional arrangements would apply where there is a binding contract in place before 2 October 2024 and the transfer of the property is finalised before 1 January 2025. In these circumstances a purchaser can benefit from the previous rates. However, any person wishing to rely on the transitional arrangements must produce a copy of the executed instrument of transfer which must contain a certificate to this effect. These were given effect by way of Financial Resolution on Budget night.

The estimated additional revenue received or foregone arising from the introduction of each of the taxation measures I announced in the Budget are set out in the Budget 2025 Tax Policy Changes book which was included in the Budget documentation, a copy of which is available on the Budget 2025 web page on the Gov.ie site.

In relation to the two costings sought, I would refer you to Revenue's pre-Budget ready reckoner, which is available on their website, and which estimates that increasing the stamp duty applied to acquisitions of residential property on considerations above €1 million to 5% would generate an additional €75 million in a full year. While the revenue that might be derived through increasing that rate to 6% on the same basis is not provided, it can be estimated on a straight-line or pro-rata basis. It should be noted that these estimates do not take account of any potential change in behaviour by the taxpayers concerned in response to changes in the tax rate.

An update of the Ready Reckoner is due to issue in the coming weeks.

Pearse Doherty (Donegal, Sinn Fein)
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63. To ask the Minister for Finance the first- and full-year cost of the measure to extend mortgage interest tax relief; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40540/24]

Jack Chambers (Dublin West, Fianna Fail)
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In my Budget 2025 address, I announced an extension of Mortgage Interest Tax Relief for one further year to the 2024 year of assessment.

For 2024, relief at the standard rate of income tax will apply in respect of the increase in interest paid in 2024 over interest paid in 2022. All other conditions pertaining to the relief remain unchanged. The relief will be capped at €1,250 per property and will be available to taxpayers in respect of their principal private residence in the State, where the outstanding mortgage balance was between €80,000 and €500,000 as of 31 December 2022. The relief extends to a qualifying property located in the State, which is the sole or main residence of the individual’s former or separated spouse or civil partner or a dependent relative. Furthermore, the taxpayer must be compliant with Local Property Tax requirements and must have an income tax liability in 2024. The relief will operate by way of a credit offset against a taxpayer’s income tax liability for 2024.

In advance of Budget 2024, the Central Bank of Ireland estimated that approximately 208,000 eligible accounts, predominantly tracker and variable mortgages, or c. 165,000 properties may be eligible for the relief and estimated the cost of the Budget 2024 measure at €125 million.

In advance of Budget 2025, given the relatively limited changes to the relief, no significant change in the number of eligible accounts was anticipated, however, a revised outer cost in the region of €140 million was estimated.

However, having regard to the current take-up of the relief and the average claim value to date, the cost of extending Mortgage Interest Tax Relief was estimated to be €40 million on a once-off basis for Budget 2025.

Pearse Doherty (Donegal, Sinn Fein)
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64. To ask the Minister for Finance the estimated increase in tax and first- and full-year revenue from the €0.80 increase to the minimum wage; the estimated increase of an additional €0.30 to €13.80; and if he will make a statement on the matter. [40541/24]

Jack Chambers (Dublin West, Fianna Fail)
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As I announced in my Budget 2025 speech, as part of a substantial personal income tax package I am increasing the ceiling of the second rate of USC, the 2 per cent rate, to take account of the increase in the National Minimum Wage, which is increasing by €0.80 per hour, from €12.70 per hour to €13.50 per hour, with effect from 1 January 2025. The ceiling of the 2 per cent USC rate band will increase by 6.3 per cent from €25,760 to €27,382 with effect from 1 January 2025. This continues the Government’s policy of ensuring full-time workers on the minimum wage will remain outside the charge to the top rates of USC. It will also be of benefit to other workers whose income is above that amount.

I am advised by Revenue that, as its payroll records do not contain data on either hours worked or the hourly wage, it has no data from which to provide an estimate for an increase in tax or revenue from increases to the national minimum wage.

Pearse Doherty (Donegal, Sinn Fein)
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65. To ask the Minister for Finance the estimated revenue in 2025 from reducing the standard rate threshold to €1.5 million; and if he will make a statement on the matter. [40542/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes which was introduced in Budget and Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements.

I am informed by Revenue that they are unable provide a costing for changes to the SFT. Information on the numbers and values of individual pension funds or on individual accrued benefits in pension schemes are not generally required to be supplied to Revenue. Therefore, currently there is no readily available underlying data or methodology on which to base reliable estimates of any possible yields that might be realised arising from reductions to the SFT as outlined by the Deputy.

As the Deputy will be aware, the examination of the Standard Fund Threshold has recently concluded and in the context of this examination my officials examined the issue of estimating the impact of changes to the SFT using only the available information about previous payments of Chargeable Excess Tax (CET). Following this examination, the Department prepared some indicative estimated costs, based on the information available. I would note that these estimated costs do not take account of behavioural changes and are based on a reduction of the current CET yield. Using this model, the indicative estimated revenue in 2025 from reducing the standard fund threshold to €1.5 million would be approximately €50 million. However, I would emphasise again that this indicative estimate does not allow for any behavioural changes.

It is important to note that the indicative costs above relate only to CET. All pensions are subject to tax on drawdown (with the exemption of a tax free lump sum). The examination of the SFT noted that this tax paid on drawdown should be included in any overall consideration of the cost of pensions tax relief, which could be better characterised as tax deferred. The issue of calculating the cost of pension tax expenditure will be considered by the implementation group to be established to consider further a number of the recommendations in the report.

Pearse Doherty (Donegal, Sinn Fein)
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66. To ask the Minister for Finance the first- and full-year revenue that will be raised next year by increasing the vacant home tax by 1%; and if he will make a statement on the matter. [40543/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Vacant Homes Tax (VHT) is a self-assessed tax, and the number of properties in scope and the amount of tax payable, depend on the returns submitted by property owners, the number of properties declared as liable, and the number of property owners entitled to claim available exemptions from the tax.

As the Deputy will be aware, the VHT is charged as a multiple of the Local Property Tax (LPT) charge, rather than as a percentage of market value. For the first chargeable period ended on 31 October 2023, VHT was charged at three times the property's base LPT charge. For the chargeable period that commenced on 1 November 2023, VHT will be charged at five times the property's base LPT charge. Returns in respect of this chargeable period will be due on 7 November 2024, with the associated tax due for payment on 1 January 2025.

In Budget 2025 I announced an increase in the rate of the tax from five times to seven times the base LPT charge. This will apply from the next chargeable period, commencing on 1 November 2024.

As of July 2024, approximately 3,500 properties have declared a liability to VHT, amounting to €2 million in respect of the first chargeable period. As VHT is charged as a multiple of LPT rather than as a percentage of market value, I am informed by Revenue that they do not have a basis on which to estimate the cost of the suggested increase to the tax.

However, I am advised by Revenue that a tentative estimate for the additional VHT yield raised by an increase of each increment to the multiplier of the LPT charge would be in the region of €0.7 million.

It should be noted that VHT returns reflect the position at a particular point in time, and the estimated additional yield does not take into account of any behavioural change.

Pearse Doherty (Donegal, Sinn Fein)
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67. To ask the Minister for Finance the estimated cost of the landlord tax relief for 2025, 2026 and 2027; and if he will make a statement on the matter. [40544/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Residential Premises Rental Income Relief (RPRIR) provides relief, at the standard rate, on a portion of a landlord’s residential rental income. The relief is €3,000 in the tax year 2024, €4,000 in the tax year 2025 and €5,000 in the tax years 2026 and 2027, which is equivalent to a tax credit of up to €600, €800 and €1,000 respectively.

At the time of its introduction, the estimated cost of the RPRIR for 2025 was €111 million, for 2026 it was €143 million, and for 2027 it was €160 million.

Further information on RPRIR is available at the following link: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rprir/index.aspx.

Pearse Doherty (Donegal, Sinn Fein)
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68. To ask the Minister for Finance the estimated cost of the rent tax credit for 2025, 2026 and 2027; and if he will make a statement on the matter. [40545/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Rent Tax Credit (RTC), as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.

For 2022 and 2023, the maximum estimated cost of the RTC was €200 million, based on the value of the RTC being €500 for a single person and €1,000 for a jointly assessed couple.

In Finance Act (No.2) 2023 the credit was increased to €750 for a single person, and €1,500 for a jointly assessed couple. It was also amended to allow parents to claim for students in “digs” or rent-a-room accommodation, these changes were estimated to cost an additional €88 million for the year 2024 over the 2022 and 2023 costs.

In this year’s Budget I announced I was increasing the value of the credit by €250, bringing it to €1,000 for a single person and €2,000 for a jointly assessed couple for 2025. This increase is estimated to cost an additional €65 million for 2025 over the original 2024 cost.

As the RTC sunsets on 31 December 2025, there is no estimated cost in respect of 2026 and 2027.

Finally, Revenue has advised me that the actual cost of the RTC for the year 2022 (the most recent year in respect of which data are available) was €156 million. However, it should be noted that further claims in respect of 2022 may yet arise.

Pearse Doherty (Donegal, Sinn Fein)
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69. To ask the Minister for Finance the level of increased compliance achieved in 2023, projected to achieve in 2024; the strategies used to achieve this; and if he will make a statement on the matter. [40546/24]

Jack Chambers (Dublin West, Fianna Fail)
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It is understood that the Deputy is referring to the additional tax revenues anticipated to arise from enhanced Revenue compliance activities during 2023 and 2024, as set out in the ‘Budget 2023 – Tax Policy Changes’ and ‘Budget 2024 – Tax Policy Changes’ documents, both published on those year’s respective Budget Days.

I am advised by Revenue that a report in respect of the Budget 2023 compliance measures was published alongside, the Revenue 2023 Annual Report in April 2024, this is available on the Revenue website at the following link .

The report concluded that the target of €80 million in additional yield from compliance measures was met.

Revenue have further advised that a report in respect of Budget 2024 compliance measures will be published alongside, the Revenue 2024 Annual Report in April 2025.

Pearse Doherty (Donegal, Sinn Fein)
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70. To ask the Minister for Finance the estimated first- and full-year cost of making the R&D tax credits payable to small and micro companies within 12 months; and if he will make a statement on the matter. [40547/24]

Jack Chambers (Dublin West, Fianna Fail)
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It is assumed that the Deputy is referring to the Research and Development (R&D) tax credit under section 766C of the Taxes Consolidation Act 1997, specifically, accelerating the second and third instalments of the tax credit for small companies incurring expenditure on qualifying research and development activities.

The R&D Tax Credit is an important feature of the Irish Corporation Tax (CT) system. The primary policy objective is to increase business R&D in Ireland, as R&D can contribute to higher innovation and productivity. More broadly, the tax credit forms part of Ireland’s corporation tax offering aimed at attracting FDI and building an innovation-driven domestic enterprise sector. The credit enables Ireland to remain competitive in attracting quality employment and investment in R&D.

Finance Act 2022 introduced changes to the manner in which the R&D tax credit is claimed and provided for an amount of the credit, up to a maximum of €25,000 (referred to as the first-year payment threshold) to be payable in year one instead of being spread over 3 annual payments. The first-year payment threshold was increased to €50,000 in Finance (No.2) Act 2023 and, as announced in Budget 2025, I intend to bring forward an amendment in Finance Bill 2024 to increase the first-year payment threshold to €75,000. These increases provide a cash-flow benefit for smaller R&D projects and are aimed at encouraging more companies to engage with the R&D corporation tax credit regime.

I am advised by Revenue that the cost of the R&D credit claimed by small and micro companies in 2022, the most recent year for which data were available, was €77m, of which €43m related to second and third year instalments. However as noted above, the first year payment threshold (the amount up to which an R&D claim is payable in full in the first year) was introduced in 2022 at €25,000. It was subsequently increased to €50,000 for 2024 and is increasing further to €75,000 in Budget 2025. As a result, claims in respect of qualifying R&D expenditure in a year of up to €250,000 will be payable in full in the first year, therefore it is expected that the majority of R&D claims by small and micro companies will be payable in full in the first year, going forward. Based on data currently available, it is not possible to estimate the cost that would be associated with accelerating the payment for small and micro companies incurring annual R&D costs in excess of that amount.

For the Deputy’s information, Revenue’s statistical information in respect of the Research & Development (R&D) credit, for all years up to 2022, is available at the following link: .

Pearse Doherty (Donegal, Sinn Fein)
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72. To ask the Minister for Finance the estimated savings on a first- and full-year basis of removing tax credits on incomes above €100,000 taking into account the tax changes announced as part of Budget 2025; and if he will make a statement on the matter. [40635/24]

Jack Chambers (Dublin West, Fianna Fail)
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I assume the Deputy envisages that the removal of credits will apply to the personal tax credit, PAYE tax credit and the earned income tax credit, and that the credits will be removed in a tapered way, rather than a complete withdrawal of credits when income exceeds €100,000. Revenue have advised that they are providing their estimates on the basis that these credits would be tapered by 2.5% per €1,000, resulting in no benefit from these credits for those on incomes in excess of €140,000. It is further assumed that the tapering will apply on an individualised basis, that is, that the relevant income will be the incomes of an individual and not that of the taxpayer unit as a whole (jointly assessed cases are counted as one taxpayer unit).

I am advised by Revenue that their micro-simulation modelling tool, Tax Modeller (TM), is built to model scenarios on a taxpayer unit basis (i.e., including jointly assessed couples as taxpayer units). It is not possible to estimate tapering of tax credits on an individual basis for a projected tax year using TM. However, incomes recorded on historic tax returns can be used to estimate the potential yield associated with the tapering of tax credits. As 2022 is the latest year for which full tax return data is currently available to be analysed (i.e., for both PAYE and self-assessed taxpayers), Revenue have carried out this estimate requested in relation to the 2022 tax year.

I am advised by Revenue that the estimated additional first year and full year tax yield from the proposal outlined are €395m and €475m respectively.

It should be noted that although the values of the personal tax credit, PAYE tax credit and the earned income tax credit have increased since 2022, (as provided for in Budget 2023, 2024 and 2025), the 2022 values for the credits were utilised for consistency purposes in preparing these estimates which refer to the 2022 tax year.

Pearse Doherty (Donegal, Sinn Fein)
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73. To ask the Minister for Finance the estimated savings on a first and full year basis of extending a 1% stamp duty of all share buybacks; and if he will make a statement on the matter. [40637/24]

Jack Chambers (Dublin West, Fianna Fail)
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I am advised by Revenue that, as details of share buybacks are not reported on tax returns, there is no available data on Revenue records upon which to base an accurate estimate of the potential savings raised by extending the 1% rate of Stamp Duty to all forms of share buybacks.

I would also refer the Deputy to the answer given to his PQ 31960/24, answered on 23 July this year. The estimates provided in that response were primarily based on an assessment of publicly available information. As it is not possible to ascertain if such information fully reflects all share buyback transactions, this information is no longer used by the Department as a basis to estimate the volume of share buy back transactions.

Finally, it should be noted that estimates in respect of changes to the rate of Stamp Duty applied to shares more generally are included in Revenue’s Ready Reckoner, which is published on the Revenue website at . An update of the Ready Reckoner is due to issue in the coming weeks.

Pearse Doherty (Donegal, Sinn Fein)
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74. To ask the Minister for Finance the estimated revenue saved were the loan to value ratio under the help-to-buy scheme increased to 85%; and if he will make a statement on the matter. [40638/24]

Pearse Doherty (Donegal, Sinn Fein)
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75. To ask the Minister for Finance the estimated revenue saved were the maximum amount of relief under the help-to-buy scheme reduced to €25,000, €20,000, €15,000, €10,000, and €5,000 respectively with a loan to value ratio increased to 85%; and if he will make a statement on the matter. [40639/24]

Jack Chambers (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 74 and 75 together.

I am advised by Revenue that the estimated reduction in the cost of the Help to Buy scheme that would be achieved by implementing the proposals outlined by the Deputy are outlined in the below table. These estimates are based on claims approved in 2023. The total cost of approved claims in 2023 was €185m.