I propose to take Questions Nos. 232, 246 and 253 together.
The Deputies have asked about deemed disposal. 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 deemed disposal, 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 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 was announced in Budget 2026, is an important first step in this regard.
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. It is important to ensure that any changes in this area achieve an appropriate balance between the supporting retail investment and maintaining appropriate anti-avoidance protections.
I am conscious of the need to ensure that retail investment is encouraged. Work is continuing on the development of the roadmap for the taxation of retail investment, as 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 to address some of the existing obstacles to greater retail investment.
