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Tuesday, 18 Nov 2025

Written Answers Nos. 329-348

Road Traffic Offences

Questions (329)

Emer Currie

Question:

329. Deputy Emer Currie asked the Minister for Transport the number of non-Irish EU citizens who have received penalty points for road traffic offences committed on Irish roads, by country, by year from 2022 to date in 2025; the number who were issued with a fixed charge penalty notice (FCPN); the number who paid the fine and received penalty points by year; the number summonsed to court for non-payment of the fixed charge notice; the number convicted and the penalties imposed; and if he will make a statement on the matter. [63988/25]

View answer

Written answers

The National Vehicle and Driver File (NVDF) is the database of record for Irish Driving Licence and Learner Permit Holders. The NVDF does not store citizenship information as it is not captured during the driving licence application process. Place of birth is captured when a licence is first applied for but this is not necessarily the same as citizenship and is not updated if citizenship changes.

The issuing of FCPNs, subsequent payment of these and court summonses are all matters for An Garda Síochána. Convictions are a matter for the Court Services.

Driver Licences

Questions (330)

Emer Currie

Question:

330. Deputy Emer Currie asked the Minister for Transport the number of years that a non-Irish EU citizen can remain in Ireland before they are required to exchange their drivers licence or permit for an Irish one; if the Minister intends to close this loophole; and if he will make a statement on the matter. [63989/25]

View answer

Written answers

As Minister of State for International & Road Transport, Logistics, Rail & Ports, I wish to advise that article 2 (1) of the EU Driving Licence Directive, which sets out the driver licensing legislation with which all Member States must comply, requires Member States to recognise all EU driving licences.

Under EU law, drivers must renew their EU licence in the Member State where they are resident. Anyone with a valid EU driving licence from another member state, who is resident in Ireland, is required to exchange their licence for an Irish driving licence before that licence expires to continue to drive here.

An EU citizen who is resident in Ireland, as for any resident, must hold an EU licence to drive here.

Taxi Regulations

Questions (331)

Ruth Coppinger

Question:

331. Deputy Ruth Coppinger asked the Minister for Transport to commission a formal review into the fixed fare policy of a company (details supplied) and its compliance with the Taxi Regulation Act 2013 and the Taxi Regulation (Maximum Fares) Order 2024; and if he will make a statement on the matter. [63990/25]

View answer

Written answers

The regulation of the small public service vehicle (SPSV) industry, including the setting of fares, is a matter for the independent transport regulator, the National Transport Authority (NTA), under the provisions of the Consolidated Taxi Regulation Acts 2013 and 2016. I have no role in the day-to-day operations of the SPSV sector.

Section 24 of the Consolidated Taxi Regulation Acts 2013 and 2016 empowers the NTA Board to make a 'Maximum Fares Order' fixing the maximum fare that may be charged by the driver of a taxi for any journey and ensuring the protection of passengers. The current maximum fares order took effect in December 2024 and a maximum fare review is carried our approximately every two years. The NTA has conducted these reviews since 2011. It should be noted that hackneys and limousines agree their fares in advance and do not use a meter.

Neither I, my Department nor the NTA are parties to the commercial or contractual arrangements in place between SPSV drivers and dispatch operator(s).

Given the NTA's responsibility in this area, I have referred your question to the NTA for further information. Please advise my private office if you have not received a reply within 10 working days.

A referred reply was forwarded to the Deputy under Standing Orders.

Taxi Regulations

Questions (332)

Ruth Coppinger

Question:

332. Deputy Ruth Coppinger asked the Minister for Transport to consider the creation of national taxi booking application that would be State run; and if he will make a statement on the matter. [63991/25]

View answer

Written answers

The regulation of the small public service vehicle (SPSV) industry is a matter for the independent transport regulator, the National Transport Authority (NTA), under the provisions of the Consolidated Taxi Regulation Acts 2013 and 2016. I have no role in the day-to-day operations of the SPSV sector.

Accordingly, I have referred your question to the NTA for direct reply. Please advise my private office if you have not received a reply within 10 working days.

A referred reply was forwarded to the Deputy under Standing Orders.

Bus Services

Questions (333)

Shane Moynihan

Question:

333. Deputy Shane Moynihan asked the Minister for Transport the bus route that will serve Firhouse Village since the new route F1 replaced the 49 route; and if he will make a statement on the matter. [63992/25]

View answer

Written answers

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and for the scheduling and timetabling of these services in conjunction with the relevant transport operators.

In light of the NTA’s responsibility in this area, I have forwarded the Deputy's question to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.

A referred reply was forwarded to the Deputy under Standing Orders.

Bus Services

Questions (334)

Emer Currie

Question:

334. Deputy Emer Currie asked the Minister for Transport for an update on the review of capacity on a service (details supplied); and if he will make a statement on the matter. [63993/25]

View answer

Written answers

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and for the scheduling and timetabling of these services in conjunction with the relevant transport operators, in this case Dublin Bus.

In light of the NTA's responsibility in this area, I have forwarded the Deputy's question to the NTA and Dublin Bus for direct reply. Please advise my private office if you do not receive a response within ten working days.

Taxi Regulations

Questions (335)

Robert O'Donoghue

Question:

335. Deputy Robert O'Donoghue asked the Minister for Transport if he is aware of any plans to conduct a review of app-based taxi fare models and their compliance with Irish taxi regulations; if he is aware of any plans to ensure transparency and parity in fare structures between licensed taxi operators and app-based platforms; if there are any Departmental plans to develop a publicly managed NTA taxi-hailing app; and if he will make a statement on the matter. [63994/25]

View answer

Written answers

The regulation of the small public service vehicle (SPSV) industry, including the setting of fares, is a matter for the independent transport regulator, the National Transport Authority (NTA), under the provisions of the Consolidated Taxi Regulation Acts 2013 and 2016. I have no role in the day-to-day operations of the SPSV sector.

Section 24 of the Consolidated Taxi Regulation Acts 2013 and 2016 empowers the NTA Board to make a 'Maximum Fares Order' fixing the maximum fare that may be charged by the driver of a taxi for any journey and ensuring the protection of passengers. The current maximum fares order took effect in December 2024 and a maximum fare review is carried our approximately every two years. The NTA has conducted these reviews since 2011. It should be noted that hackneys and limousines agree their fares in advance and do not use a meter.

Neither I, my Department nor the NTA are parties to the commercial or contractual arrangements in place between SPSV drivers and dispatch operator(s).

Given the NTA's responsibility in this area, and in relation to your comment regarding an NTA taxi-hailing app, I have referred your question to the NTA for further information. Please advise my private office if you have not received a reply within 10 working days.

A referred reply was forwarded to the Deputy under Standing Orders.

Transport Policy

Questions (336)

John Paul O'Shea

Question:

336. Deputy John Paul O'Shea asked the Minister for Transport if he will provide an update on current and planned investment in transport infrastructure in the Cork Northwest constituency, including improvements to regional and local roads; and if he will make a statement on the matter. [64009/25]

View answer

Written answers

The recently concluded review of the National Development Plan has confirmed the Department of Transport’s annual capital allocations from 2026 to 2030.

The Department is currently reviewing key programmes and projects in the transport sector in the context of that capital funding envelope, including plans for investment in public transport projects, and a decision on a programme of delivery within the available funding will be made in the coming months.

My department will now progress the sectoral plan for the 2026 to 2030 period, which will be published later this year and which will inform road scheme priorities in the coming years.

Public Transport

As the Deputy may be aware, the Cork Area Commuter Rail Programme is a key project in the National Development Plan 2021-2030 and the Cork Metropolitan Area Transport Strategy 2040. The Programme is being delivered on a phased basis and will provide a more efficient and decarbonised transport service for the area to help facilitate population and economic growth over the coming decades.

Phase 1 of the Programme consists of a signalling upgrade, construction of a through-platform at Kent Station, which opened in April, and double-tracking from Glounthaune to Midleton. This phase has received EU Funding under the National Recovery and Resilience Plan and is expected to be completed by the end of 2026.

Phase 2 of the programme plans for the electrification of the Cork commuter rail network and the delivery of up to eight new stations in the following locations: Tivoli, Dunkettle, Water Rock, Carrigtwohill West, Ballynoe, Blackpool / Kilbarry, Monard and Blarney/Stoneview, as well as the upgrade of existing stations including Mallow.

In 2024, Iarnród Éireann (IÉ) awarded a contract to TYPSA and Roughan O’Donovan appointing them as multi-disciplinary consultants for the design of Phase 2 of the Programme. This Phase provides for the new stations among other works.

The first public consultation on Phase 2 of the Programme concluded in July. Phase 2 will be progressed following the completion of Phase 1, subject to funding and relevant approvals.

Noting the NTA's responsibility in this matter and the specific issues raised by the Deputy, I have referred the Deputy's questions to the NTA for a more detailed reply. Please contact my private office if you do not receive a reply within 10 days.

National Roads

As Minister for Transport, I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Infrastructure Guidelines and the necessary statutory approvals. In this context, TII is best placed to advise you in relation to this.

Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.

Regional and Local Roads

In accordance with the provisions of Section 13 of the Roads Act 1993, each local authority has statutory responsibility for the improvement and maintenance of their regional and local roads. Works on those roads are funded from local authorities' own resources and are supplemented by State Road grants. Of these grants, the vast majority (approximately 90%) are targeted at the maintenance and renewal of the network with c. 10% of the remaining funding invested in new roads/bridges or for road realignments.

Any new road projects that seek State funding are assessed by the Department on a case-by-case basis. All projects proposed by local authorities for consideration must comply with the requirements of the Infrastructure Guidelines (formerly the Public Spending Code) and the Department's Transport Appraisal Framework. Given the limited funding available for regional and local road improvement works it is important for local authorities to prioritise projects within their overall area of responsibility with these requirements in mind.

In 2025, Cork County Council was allocated €82,838,900 for the maintenance and improvement of its regional and local roads network of which over €79m was allocated to road protection and renewal. The planning and implementation of the annual roadworks programme is the responsibility of Cork County Council.

ZEVI

The Government is fully committed to supporting a significant expansion and modernisation of the electric vehicle (EV) charging network over the coming years.

Cork City has developed their EV Infrastructure Strategy and are currently developing site selection and implementation plans to meet user needs and EU/National targets. It is expected that EV users in Cork City along with other Local Authorities will benefit from significant EV Infrastructure roll out over the coming years with support from schemes such as:

• the Shared Island Sports Scheme, which currently includes 14 eligible sites in county Cork.

• LDV1, LDV2, LDV3 in 2025 and 2026 that will provide en-route charging across the TEN-T network.

• the delivery of destination and neighbourhood charging under the Regional and Local EV Charging Network Plan from 2027 to 2030.

These schemes will be carried out in tandem with private schemes which are being delivered across the country at town centres, hotels and petrol stations.

Active Travel

Over €290 million has been allocated by the Department of Transport to the National Transport Authority (NTA) in 2025 for Active Travel measures around the country. The NTA disperses this funding to all local authorities, works with them to identify walking and cycling projects and oversees their delivery.

Of the total 2025 funding, €19 Million was allocated to Cork County Council to progress the following Active Travel Projects:

Project Names

Allocations:

Cobh Ferry to Train Station Active Travel

€50,000

Dunkettle - Carrigtwohill - Phase 3

€585,646

Ballinacurra - Midleton Phase 1A

€147,947

Carrigaline to Ringaskiddy (Phase 1 Rafeen to Passage)

€2,000,000

Little Island - Active Travel Bridge

€50,000

Cork County Council Active Travel Office - Staff Costs

€1,300,000

Cycle Parking

€50,000

Bóthar Guidel - Active Travel Bridge

€1,425,000

Dunkettle - Carrigtwohill - Phase 4

€500,750

Youghal - Summerfield Cross to Pobalscoil Na Trinoide - Active Travel Scheme

€150,000

Carrigtwohill to Midleton - Phase 2 (Active Travel Pathfinder)

€150,000

Carrigtwohill to Midleton Phase 1

€2,073,040

Carrigaline - Ringaskiddy and Passage (Phase 2 Raffeen to Carrigaline)

€50,000

Carrigaline - Active Travel Scheme (Main Street)

€50,000

Carrigaline Active Travel Scheme (Bridgemount)

€881,381

SRTS Round 2: St Patrick's BNS

€200,000

SRTS Round2: St Joseph's Primary School

€200,000

SRTS Round 2: St Joseph's GNS

€300,000

SRTS Round 2: St Colman's College

€30,000

SRTS Round 2: Loreto Secondary School

€5,000

SRTS Round 2: Coachford NS

€35,000

SRTS Round 2: Baltydaniel NS

€200,000

SRTS Round 1: Scoil Iosaef Naofa

€163,042

SRTS Round 1: Midleton CBS Primary School

€100,000

Ballinacurra to Midleton Ph. 2 (Ballyannon Woods Car Park to R630)

€1,200,000

Ballinacurra to Midleton Phase 3 (Broderick Street to Tesco Gyratory)

€20,000

Ballinacurra to Midleton Phase 4 (Rosehill Business Park to Lakeview)

€4,443,194

Ballinacurra to Midleton Ph. 5 (Tesco Gyratory to Northern Relief Rd)

€20,000

SRTS Round 3: CBS Charleville Secondary School

€30,000

SRTS Round 3: CBS Primary Mitchelstown

€30,000

SRTS Round 3: Gaelscoil Mhichíl Uí Choileáin

€30,000

SRTS Round 3: Little Island NS

€30,000

Active Travel Towns and Villages

€2,400,000

Cobh Cross Connection

€100,000

Subtotal

€19,000,000

€360 million has been confirmed as the 2026 allocation to the Active Travel and Greenways Programmes. Individual local authority allocations at project level will be announced as early as possible in the New Year.

A referred reply was forwarded to the Deputy under Standing Orders.

Public Transport

Questions (337)

John Paul O'Shea

Question:

337. Deputy John Paul O'Shea asked the Minister for Transport the measures being taken to improve public transport connectivity and accessibility in Cork Northwest, particularly for rural communities with limited bus or rail services; and if he will make a statement on the matter. [64010/25]

View answer

Written answers

As Minister of State at the Department of Transport with special responsibility for Rural Transport, I have responsibility for policy and overall funding in relation to rural public transport service provision; however, I am not involved in the day-to-day operations.

The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally. In light of the NTA responsibilities I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.

Public Transport

Questions (338)

John Paul O'Shea

Question:

338. Deputy John Paul O'Shea asked the Minister for Transport if he acknowledges the lack of adequate public transport options serving rural communities in Cork Northwest, where many residents have little or no access to bus or rail links; and if he will commit to providing increased investment and service expansion to address this ongoing transport inequality. [64011/25]

View answer

Written answers

As Minister of State at the Department of Transport with special responsibility for Rural Transport, I have responsibility for policy and overall funding in relation to rural public transport service provision; however, I am not involved in the day-to-day operations.

The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally. In light of the NTA responsibilities I have referred your question to the NTA for direct reply to you. Please advise my private office if you do not receive a reply within ten working days.

Bus Services

Questions (339)

Mairéad Farrell

Question:

339. Deputy Mairéad Farrell asked the Minister for Transport if an express bus service between Galway city and Shannon airport is being considered; and if he will make a statement on the matter. [64012/25]

View answer

Written answers

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally and for the scheduling and timetabling of these services in conjunction with the relevant transport operators.

In light of the NTA’s responsibility in this area, I have forwarded the Deputy's question to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.

A referred reply was forwarded to the Deputy under Standing Orders.

Departmental Data

Questions (340, 341, 342)

Ken O'Flynn

Question:

340. Deputy Ken O'Flynn asked the Minister for Finance the total number of Ukrainian-registered vehicles that have entered Ireland since February 2022 under temporary protection or refugee status arrangements; and if he will make a statement on the matter. [63823/25]

View answer

Ken O'Flynn

Question:

341. Deputy Ken O'Flynn asked the Minister for Finance the number of Ukrainian-registered vehicles that have been formally registered with Irish authorities since February 2022, by year; and if he will make a statement on the matter. [63824/25]

View answer

Ken O'Flynn

Question:

342. Deputy Ken O'Flynn asked the Minister for Finance the number of Ukrainian-registered vehicles that have transitioned from Ukrainian registration plates to Irish registration plates since February 2022; the process and timeline required for such transitions; and if he will make a statement on the matter. [63825/25]

View answer

Written answers

I propose to take Questions Nos. 340, 341 and 342 together.

Ukrainian nationals fleeing the war in their country and seeking temporary protection are covered by the EU Temporary Protection Directive (2001/55 EC) activated by Council Decision EU 2022/382 of 4 March 2022. Under the terms of that Directive, Ukrainian nationals are eligible for temporary protection, initially for one year and on a renewable basis. In June 2024, the European Council extended the Temporary Protection Directive to March 2026.

Some Ukrainian nationals may have travelled to Ireland by car and Revenue does not hold information on cars entering the State.

Finance Act 1992 (as amended) provides that all vehicles in the State must be registered or covered by an exemption from registration.

Ukrainian vehicles may be registered in Ireland. Vehicles are required to be registered within 30 days of their date of entry into the State except where the vehicle is held by a duly authorised motor trader, who is permitted to hold an unregistered vehicle until it is being sold, and to register it then. Imported used vehicles are registered only following inspection at a National Car Testing Service (NCTS) Centre. Vehicle owners are required to contact the NCTS within 7 days of the vehicle entering the State to get an appointment, which allows for the relevant vehicle examination and registration process to happen within that 30-day period.

The following table shows the number of vehicles registered in the State, since 1 February 2022, with Ukraine recorded as the country of origin.

Year

Number

2022

2

2023

3

2024

2

2025

8

Total

15

..

Ukrainian nationals may seek to be granted temporary exemption from the requirement to register their vehicle in the State. The Temporary Exemption from Registration of Vehicles Regulations, 1993, (S.I. No. 60 of 1993) set out the criteria for eligibility for such exemption and apply generally to applicants established outside of the State, including those from the Ukraine. Temporary exemptions from registration are normally granted for a period of 12 months and can be extended at the discretion of the Commissioners.

Applications for temporary exemptions or for an extension to an existing exemption should be made to the National Vehicle Registration Service (NVRTS) in Revenue. Each application is assessed on a case-by-case basis. NVRTS data shows that temporary exemption applications have been received in respect of 1,432 vehicles from Ukraine, 1,303 of which have been granted, and 129 applications are pending, subject to receipt of additional documentation.

The approach to temporary vehicle registration exemption for Ukrainian nationals who are in the State under the ongoing EU Temporary Protection arrangements is being monitored and is subject to review.

Further information is available on the Revenue website at: www.revenue.ie/en/vrt/reliefs-and-exemptions/temporary-exemption.aspx

Question No. 341 answered with Question No. 340.
Question No. 342 answered with Question No. 340.

Financial Services

Questions (343)

Darren O'Rourke

Question:

343. Deputy Darren O'Rourke asked the Minister for Finance if there are plans to change the criteria in relation to deposit requirements for house purchases in order to recognise rent payments, over many years in some cases, as proof of ability to make mortgage repayments; and if he will make a statement on the matter. [62771/25]

View answer

Written answers

The Central Bank of Ireland, as part of its independent mandate to preserve and protect financial stability in Ireland, has statutory responsibility for the regulation of mortgage lending.

In line with this mandate, there are regulatory requirements lenders have to meet when providing mortgage credit to consumers. For example, lenders have to comply with loan-to-value and loan-to-income requirements.

Over the course of 2021 and 2022, the Central Bank of Ireland reviewed the lending measures to ensure they remained fit for purpose. The Central Bank of Ireland indicated that challenges facing prospective home buyers in saving for a deposit while making rental payments was one of the strongest themes coming out of the public and stakeholder engagement during the review.

One key change resulting from the review was the recalibration of the loan-to-income limit for first time buyers from 3.5 to 4 times gross income. The maximum loan-to-value limit for a mortgage is 90% of the value of the principal dwelling house.

It should be noted that lenders have the flexibility to provide up to 15% of their overall mortgage lending in a year in excess of the stated thresholds.

The Central Bank of Ireland has indicated that the requirement of a borrower deposit in the mortgage lending rules requirements is a crucial element of sustainable lending standards as it provides a buffer against the risk of negative equity arising if there is a decline in house prices.

The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 also requires lenders to assess the creditworthiness of the borrower. The regulations provide that mortgage credit should only be made available where the result of the creditworthiness assessment indicates that the consumer’s obligations are likely to be met.

Subject to complying with these requirements, it remains the responsibility of each lender to determine its lending policies.

In the case of an application for a mortgage, this includes the assessment of the creditworthiness of the applicant and the determination of whether or not to provide a loan and the level of such a loan.

Tax Data

Questions (344)

Malcolm Byrne

Question:

344. Deputy Malcolm Byrne asked the Minister for Finance the total amount collected in inheritance tax for each year over the period 2015 to 2024. [62796/25]

View answer

Written answers

The Capital Acquisitions Tax receipts (broken down by gift tax and inheritance tax) from 2015 to 2024 are presented in the table below:

Capital Acquisitions Tax receipts (2015 - 2024, €m)

-

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Inheritance Tax

365

386

426

466

455

430

481

524

556.9

724.9

Gift Tax

33

26

32

53

59

71

95

78

75.09

124.8

Total CAT*

398

412

458

519

514

501

576

602

631.99

849.7

*excluding Probate Tax and Discretionary Trust Tax

A full breakdown of Capital Acquisitions Tax receipts from 2007 to 2024 is available from Revenue at the following link: www.revenue.ie/en/corporate/documents/statistics/receipts/cat-receipts.pdf

Tax Data

Questions (345)

Sorca Clarke

Question:

345. Deputy Sorca Clarke asked the Minister for Finance the estimated excise duty take on a pint of beer priced €7 and a bottle of 75cl wine priced €15. [62815/25]

View answer

Written answers

I am advised by Revenue, that Excise Duty on alcohol, also known as Alcohol Products Tax (APT), is a specific Duty. The amount of Duty applied depends on the alcohol content of the product and the volume (ABV). In this regard, the price charged does not have an impact on the amount of APT applied to an alcohol product, however VAT, at the standard rate, is applied on the selling price.

The following table shows the ATP and VAT contribution from a pint of beer with an alcohol content of 4.5% ABV priced at €7 and a 75cl bottle of wine with an alcohol content of 12.5% ABV priced at €15.

Product

Alcohol Volume

Product Description for APT

Rate of APT

APT

VAT

€7 Pint of Beer

4.5% ABV

Exceeding 2.8% volume

€22.55 per HL per cent of alcohol

€0.58

€1.31

€15 75cl bottle of Wine

12.5% ABV

Still, exceeding 5.5% volume but not exceeding 15% volume

€424.84 per HL

€3.19

€2.80

The various rates applying to alcohol products can be found on the Revenue website at: www.revenue.ie/en/companies-and-charities/excise-and-licences/excise-duty-rates/alcohol-products-tax.aspx

Further guidance on APT can also be found on the Revenue website at: www.revenue.ie/en/companies-and-charities/excise-and-licences/alcohol-products-tax/alcohol-products-tax/index.aspx

I am further advised by Revenue that APT data, including total volumes, applicable excise rates, and total liabilities by commodity and accounting period are available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/alcohol/alcohol-products-tax.aspx

Tax Code

Questions (346)

Thomas Gould

Question:

346. Deputy Thomas Gould asked the Minister for Finance for an update on plans for deemed disposal tax. [62830/25]

View answer

Written answers

The Deputy has asked about deemed disposal, which is an anti-avoidance measure that applies to investments in Irish domiciled investment funds and life assurance products, as well as equivalent offshore funds and certain foreign life assurance products. Under the deemed disposal rule, tax is levied eight years after an investment is made, and every subsequent eight years, regardless of whether or not a disposal has in fact occurred. The tax is levied on any gain in the value of the investment from the date of acquisition to the date of the deemed disposal. On the ultimate disposal of the investment, any tax paid is allowed as a credit against the final tax liability. The purpose of deemed disposal is to prevent the indefinite roll-up of income and gains and the associated loss of tax to the Exchequer.

I am aware of the concerns which have been raised in relation to the current regime for the taxation of retail investment, and the application of deemed disposal in particular.

I am committed to taking the necessary action to support retail investment in Ireland. The reduction from 41% to 38% in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products, that I announced in Budget 2026, is an important first step in this regard.

However, I am conscious of the need for further adaptation of the existing complex taxation regimes, encouraging retail investment while ensuring appropriate anti-avoidance protections. Therefore in Budget 2026 I also announced my intention to publish a roadmap early in 2026, setting out an approach to simplify and adapt the tax framework to further support retail investment. This roadmap will facilitate due consideration of the Funds Sector 2030 Report, which made recommendations in relation to deemed disposal. The roadmap will also take into account the European Commission’s recommendation on Savings and Investment Accounts. I hope that further progress can be made across coming budgets to address some of the existing obstacles to greater retail investment.

Tax Code

Questions (347, 348)

Emer Currie

Question:

347. Deputy Emer Currie asked the Minister for Finance if he has considered any changes to the inheritance tax policy for individuals without children; and if he will make a statement on the matter. [62956/25]

View answer

Emer Currie

Question:

348. Deputy Emer Currie asked the Minister for Finance the estimated cost of making changes to CAT to address concerns regarding inheritance tax policy for individuals without children; and if he will make a statement on the matter. [62957/25]

View answer

Written answers

I propose to take Questions Nos. 347 and 348 together.

Capital Acquisitions Tax (CAT) is a beneficiary-based tax on gifts and inheritances that is payable on the value of the property received. For CAT purposes, the relationship between the person giving a gift or inheritance (i.e. the disponer) and the person who receives it (i.e. the beneficiary) determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. CAT is charged at a rate of 33% above each Group threshold.

There are three Group thresholds:

• the Group A threshold (currently €400,000) applies where the beneficiary is a child of the person giving the gift or inheritance

• the Group B threshold (currently €40,000) applies where the beneficiary is a brother, sister, nephew, niece, lineal ancestor or lineal descendant of the person giving the gift or inheritance

• the Group C threshold (currently €20,000) applies in all other cases.

Revenue have indicated that it is very difficult to cost the measure indicated by the Deputy, and have estimated that uplifting Group B to €400,000 would cost approximately €305 million. This cost is estimated on the basis that there would be two separate €400,000 thresholds. In reality however, if this measure were to be implemented, there would be just the one Group A threshold for beneficiaries from parents, aunts, uncles and brothers and sisters which may lower this cost. However, this cannot be accurately costed at this time.

Furthermore, my officials have examined Capital Acquisitions Tax as part of the annual Tax Strategy Group exercise. The resultant papers outlined the tax policy considerations for the Government and the options available to it in forming this year’s Budget. They were published in advance of the Budget and are the best means of considering issues such as inheritance tax in an analytical and transparent way. The Tax Strategy Group is not a decision-making body and the papers produced by my Department are simply a list of options and issues to be considered in the Budgetary process.

A link to this year’s paper on Capital Taxes which includes some cost modelling can be found here: www.gov.ie/en/department-of-finance/collections/budget-2026-tax-strategy-group-papers/

It should be noted that there would be a significant cost in making changes to CAT. In this regard, the options available for setting CAT thresholds must be balanced against competing demands.

Question No. 348 answered with Question No. 347.
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