Budget 2027 Summary & Key Tax Updates | Hoare Chartered Accountants

Hi everyone, Eddie here from Hoare Chartered Accountants. Budget 2027 has just been announced, and I want to walk you through some of the primary measures introduced and outline exactly how they impact you, your family, and your business.

We have put together a quick video breakdown below, followed by a summary of the headline tax changes.

For official documentation and full policy publications, you can review Your Guide to Budget 2027 on Gov.ie.

1. Income Tax, Bands and Tax Credits

From an income tax perspective, there are several positive adjustments to help reduce the tax burden on workers:

• Standard Rate Cut-off Point: The single person entry point for the higher tax band increases by €2,500, moving from €44,000 up to €46,500.
• Tax Credits: The Personal Tax Credit, PAYE Credit, and Earned Income Credit are each increasing by €125, reaching €2,125 per credit.
• What This Means for You: An individual earning €50,000 per year will see an annual income tax saving of around €750. For a married couple on two incomes over €100,000, that total saving comes to approximately €1,500 per year.

2. Universal Social Charge (USC) and Minimum Wage

To support minimum wage earners and keep pace with statutory wage increases:

• National Minimum Wage: Increases to €14.94 per hour.
• USC Band Adjustments: In line with previous years, the 2% USC band entry limit has been raised so that full-time minimum wage workers do not pay USC at a rate higher than 2%.

For complete rate tables and tax threshold schedules, you can consult the official Revenue Commissioners Tax Guidance.

3. Capital Taxes: CGT and CAT Changes

There are very welcome updates across capital taxes to assist with asset transfers and disposals:

Capital Gains Tax (CGT)

The standard Capital Gains Tax rate is reduced from 33% to 31% on disposals taking effect immediately. Please note that this reduction does not apply to the sale of development land, which remains taxed at 33% under corporation tax rules.

Capital Acquisitions Tax (CAT) Thresholds

• Group A (Parent to Child): Increased by 5% from €400,000 to €420,000.
• Group B (Brothers, Sisters, Nieces, Nephews, Grandchildren): Increased by 10% to €44,000.
• Group C (All other relationships): Increased by 10% to €22,000.

To check tax-free gift and inheritance limits in detail, visit Citizens Information on Capital Acquisitions Tax.

4. SME Cashflow Relief: Preliminary Corporation Tax

For small and medium enterprises, Budget 2027 brings a very helpful cashflow adjustment regarding preliminary corporation tax:

• Previous Requirement: 100% of the preliminary corporation tax liability was due by the end of the accounting period.
• New Requirement: Companies now only need to pay 80% by the end of the accounting period, with the remaining 20% balance payable within four months after the period ends.

This provides immediate working capital flexibility for businesses.

5. Deadline Reminder: Self-Assessment Pay and File

Finally, a friendly reminder for anyone registered for self-assessment income tax:

The 2025 Pay and File deadline is fast approaching on 31st October. If you file and pay online via ROS, the extended deadline applies up to the middle of November.

You can manage your returns directly via the Revenue Online Service (ROS) portal. Hoare Chartered Accountants are available to help. 

How Hoare Chartered Accountants Can Help

If you have any questions about how these Budget 2027 changes affect your business, investments, or tax planning, please feel free to reach out to us. You can call our office, drop in to see us, or send us an email to set up a consultation.