Now that the dust has settled on the newly released 2024 budget from Tuesday 10th October, it is time to look at what it could mean for start-ups and small and medium-sized businesses in the new year.
Being one of Ireland’s largest incubators for start-up companies, the Rubicon Centre clients can benefit from contributions to the ‘Supports for Business’ section of the recent 2024 Budget release.
One main takeaway includes the new angel investor scheme. It states a reduced rate of Capital Gains Tax of 16% for angel investors who contribute to innovative start-ups that dispose of gains up to twice the value of their investment, up to €3 million. Although not finalised just yet, the scheme looks promising for innovative start-ups and SMEs, which Enterprise Ireland has said they will have a key role in eligibility certification.
As Angel Investors are one of the most valuable sources of seed funding for SMEs, especially at the early stages of a company’s life, this new scheme is a positive step towards access to more funding. This is good news for Rubicon entrepreneurs who will participate on the New Frontiers, EXXcel and Student INC programmes in the years ahead. Entrepreneurs can pitch their innovative projects and business ideas to Rubicon Angel Investors and the wider investment community as part of these initiatives.
The budget also states a growth of 5% to the research and development (R&D) tax credit, which will increase the first-year payment threshold from €25,000 to €50,000. R&D can be that essential push for increased profit and competitiveness among small, and even many big businesses, so this extra expansion has potential to foster this area further.
“This Budget provides Irish businesses with the necessary supports to continue to grow and attract staff, while helping with the additional costs of doing business. We are proud to back business, to back workers and ensure that work pays” Neale Richmond TD says.
To see the full 2024 Budget from a Business Prospective, you can visit the Dept. of Enterprise Trade, and Employment : Budget 2024 – Government backing business in the face of ongoing challenges – DETE (enterprise.gov.ie)
