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Summary of the Finance Bill - 2023 Budget Ireland

The Irish Finance Bill 2023 was recently published by the Oireachtas on March 9th, which announced tax measures introduced in Ireland as part of this year’s budget and the Cost-of-Living package.

Though concise, when compared with previous bills, these measures should help the country build a stronger and more competitive economy. It contains additional proposed updates to some existing taxes and schemes in place. Keep reading for a summary of the bill.

Key points of the finance bill 2023 in Ireland

Changes to Value Added Tax (VAT)

Also featured in the bill is an extension of the reduced rate of VAT on electricity and gas until the end of October this year.

-For the tourism and hospitality sector, there will be an extension of the 9% VAT rate until August 31st, 2023.

-The domestic electricity and gas supply reduction of 9% will extend until October 31st, 2023.

-This bill also provides for the continuation of the zero rate of VAT to the supply of Covid-19 testing kits.

Changes to The Temporary Business Energy Support Scheme (TBESS)

Summary of the Finance Bill - 2023 Budget Ireland

Various positive changes have been made to the Temporary Business Energy Support Scheme (TBESS) in the 2023 budget in Ireland. This includes improvements such as an extension of the time limits to make a claim, a lowered threshold to access the scheme and an increase in the level of relief. More specifically:

-The scheme will extend from February 28th to May 31st, 2023, with the scope to further extend this until July 31st.

-The monthly limit on payments has increased from €10,000 to €15,000 per trade. In cases where said trade or profession is carried out across more than one location, the limit has increased from €30,000 to €45,000.

-The time limit to make a claim will extend to July 31st, 2023. This applies to businesses eligible to make a claim from the beginning of the scheme (September 2022)

-The energy cost threshold will reduce from a 50% increase in the average electricity or gas unit price to a 30% increase.

-Payable amounts will increase to 50% as opposed to the earlier outlined 40% of the uplift in electricity or gas bills.

Amendments to the 2023 Budget in Relation to The Agricultural Sector in Ireland

Summary of the Finance Bill - 2023 Budget Ireland

In relation to agricultural sector tax reliefs in Ireland, the following five amendments have been made to the 2023 budget:

  • There has been an amendment to the publication requirements for the accelerated wear and tear allowances for farm safety equipment. The finance bill in Ireland has also updated this section, defining SME contained Commission Regulation (EU) 2022/2472.
  • The Stamp Duty Young Trained Farmers Relief will extend to December 31st, 2025. In addition to this, the period during which a person can qualify after acquiring land will reduce to 3 years.
  • There has been an extension of the following reliefs:
    • -Farm Restructuring (CGT) relief to December 31st, 2025.
    • -Registered Farm Partnership Stock Relief to December 31st, 2024.
    • -Young Trained Farmer Stock Relief to December 31st, 2024.
    • -The Accelerated Capital Allowance Relief for capital expenditure on slurry storage to December 31st, 2025. (The publication requirements for this relief were also amended)

Updated Changes to Benefit in Kind (BIK) on a Company Car in 2023:

Lastly, the finance bill 2023 has introduced an additional tax relief of €10,000 to aid in reducing the amount of BIK payable on a company car.

-Employers can reduce the Original Market Value (OMV) of company cars, vans and EVs by €10,000.

-The upper limit of business mileage was temporarily reduced by 4,000km to 48,000.

-Additionally, the pre-existing €35,000 relief for BIK on electric cars will also remain in place for 2023. This means the total relief for 2023 will be up to €45,000.

To learn more about the latest changes to BIK in Ireland in the 2023 budget, read our article.


Contact us today for more information about the 2023 budget in Ireland.