Dáil Éireann Debate, Tuesday - 9 December 2025
319. Deputy Sean Fleming asked the Tánaiste and Minister for Finance if he will respond to correspondence (details supplied) regarding EFTs through the deemed disposal rule; and if he will make a statement on the matter. [69948/25]
View answerThe Deputy has asked about deemed disposal and ETFs.
Deemed disposal 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 position of a number of stakeholders in relation to 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. As an important and positive first step in encouraging and supporting retail investment, in line with goals of the EU Savings and Investment Union, Budget 2026 included a reduction in the taxation rate that applies to Irish and equivalent offshore funds, and Irish and certain foreign life assurance products, from 41% to 38%.
However, I am very conscious of the continued concern of retail investors. Work will continue on the roadmap announced in Budget 2026. The roadmap is to be published early next year and will set out an approach to simplify and adapt the tax framework, to further support retail investment while retaining necessary and important anti-avoidance protections in a proportionate manner. This roadmap will facilitate due consideration of the Funds Sector 2030 Report and take into account the European Commission’s recommendation on Savings and Investment Accounts. I hope further progress can be made across coming budgets to address some of the existing obstacles to greater retail investment.
