End of Year Tax Tips 2025

With year-end fast approaching, now is a good time to review your current tax situation and make plans for the future. Contact Bryan Farrell from our tax team or your engagement partner to discuss the tax planning opportunities which you can avail of.

Here are some of our top tax tips to consider before the year-end and into the New Year.

Employers

• Company pension scheme payments should be paid prior to the accounting year-end to ensure the company can claim a tax deduction. Consider the use of a PRSA for greater flexibility around contribution levels, noting that contributions made to PRSAs in 2025 onwards are now restricted to 100% of the employee/director’s salary.

• Businesses should ensure that all current tax filings are up to date and paid to protect their approved status for the Debt Warehousing Scheme.

• A Benefit in Kind exemption is available for electric cars provided to employees. The exemption reduces the Original Market Value (OMV) of the electric car by €30,000 when calculating the BIK. A new vehicle category for zero emission cars has also been introduced, which will apply lower BIK rates of between 6% to 15%. An electric car could represent a significant saving in BIK to employees/directors in comparison to a petrol/diesel car.

• A further BIK exemption may also apply where an employer provides an electric vehicle charging point at the employee’s or director’s main private residence.

• Bonuses paid before year-end qualify for tax deduction in the current accounting year.

Individuals

• The initial period for Capital Gains Tax (CGT) runs from 1 January to 30 November each year, and the tax payment is due on 15 December. If you made a gain (profit) on any assets you disposed in this period, please contact us as soon as possible.

• Charity donations result in additional tax relief payable to the relevant charity by Revenue which can increase the value of your personal donation. Minimum donation required is €250 per year.

• Final chance to make a claim for tax relief on unused tax credits for 2021 (e.g. home carer tax credit, tuition fees, permanent health insurance). The four year rule applies.

• The rent tax credit has been extended until the end of 2028. The value is unchanged at €1,000 per person.

• Make a claim for any unreimbursed medical expenses for the last four years.

• Employees (including directors) can receive up to 5 non-cash benefits, such as gift vouchers from their employers, up to a total value of €1,500 free from tax or BIK.

• Claims can be made in respect of tax relief for working from home expenses during 2025.

• An employer can pay €3.20 per day tax-free to employees in relation to remote working costs.

• If you are a landlord with rented residential property, ensure you are registered with the RTB (Residential Tenancies Board) in order to claim a deduction for loan interest on the properties.

• Homeowners and landlords should ensure that their Local Property Tax returns and payments are up to date to avoid the imposition of a late filing surcharge on their personal tax return. A new valuation date for LPT occurred on 1 November 2025, so taxpayers should file their return as soon as possible if they have not already done so.

• Review tax returns across all tax heads in the past year. Revenue allows a 12-month window in which to self-correct a tax return without incurring a tax penalty.

• Individuals may receive a gift up to the value of €3,000 per year free from gift tax (CAT). For example, a child can receive a gift of €3,000 from each parent. This can be significant when it is also used for grandchildren and in-laws.

• The Capital Acquisitions Tax thresholds are: Group A €400,000, Group B €40,000 and Group C €20,000.

• Additional reporting arises in respect of certain loans from family members where the aggregate of such loans exceeds €335,000.

• Avail of the annual CGT exemption of €1,270 and realise a gain of up to €1,270 without a CGT liability.

• Realise CGT losses prior to 31 December in order to claim the losses against gains made this year. CGT losses cannot be carried back to prior tax years but may be carried forward.