Written Answers Nos. 253-267
253. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance if a review of the maximum payment ceiling under the help-to-buy scheme is planned in light of current house price levels; and if so, when this review will take place and whether consideration is being given to increasing the maximum relief available. [31723/26]
View answerThe Help to Buy (HTB) incentive, provided for in section 477C of the Taxes Consolidation Act 1997 (TCA), is a tax-based scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. It also aims to encourage additional supply of new houses by supporting demand.
HTB provides a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:
• €30,000; or
• 10 per cent of the purchase price of the new property; or
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
For a property to qualify for the HTB scheme, it must be new or converted for use as a dwelling, having not previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
Based on the latest available data (31 March 2026), the scheme has supported over 64,000 individuals or couples to buy or build their own home. The average property value of approved HTB claims was €363,600, to date.
The Programme for Government commits to "retain and revise the Help to Buy scheme.". Any revisions to the HTB scheme, including revisions to the property price ceiling, would have to take into account the effective operation of the scheme and the impact any proposed changes would have on the broader housing market, but these matters will be kept under review.
Furthermore, and as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, having regard to the sound management of the public finances and the impact any proposed changes would have on the wider housing market.
254. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance if he will meet with an organisation (details supplied). [31512/26]
View answerAs the Deputy will be aware, the VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law is obliged to comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in the Directive, in respect of which Member States may apply a lower rate.
The Directive allows for historic VAT treatment to be maintained by a Member State under certain conditions, and, on this basis, Ireland has retained its application of a VAT exemption to the transport of passengers and their accompanying baggage. This means that, under Ireland’s VAT rules, suppliers of passenger transport services, including bus drivers, do not register for VAT, do not charge VAT on the supply of their services and, consequently, have no VAT recovery entitlement on their input costs. In accordance with the Directive, Ireland may continue to apply this historic VAT exemption on the supply of domestic passenger transport.
Bus drivers could only be permitted to register for VAT for passenger transport services if Ireland were to decide to end its historic exemption for the sector and bring passenger transport services into the VAT net. This would then require all suppliers to register for VAT and require them to charge VAT on their passenger transport services. There are currently no plans to end Ireland’s VAT exemption for passenger transport services.
255. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance the amount it is estimated to cost if USC was scrapped for taxpayers earning under €50,000. [31587/26]
View answerI am advised by Revenue that the estimated cost for increasing the Universal Social Charge (USC) exemption limit from €13,000 to €50,000, as per the proposal outlined by the Deputy, on a first- and full-year basis, is €790m and €905m respectively.
It is important to note that under this proposal, in circumstances where a taxpayer’s income exceeds €50,000 per annum then they pay USC on their entire income as per the below table:
|
Income Bands |
PAYE Income % |
Non-PAYE Income % |
|
€0 - €12,012 |
0.5 |
0.5 |
|
€12,013 - €28,700 |
2 |
2 |
|
€28,701 - €70,044 |
3 |
3 |
|
€70,044+ |
8 |
8 |
|
€100,000 |
8 |
11 |
This is a cost estimate for 2026 and is based on Revenue’s micro-simulation tool, Tax Modeller, using actual data for the latest year available, currently 2023, adjusted for income and employment trends in the interim.
256. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance the amount it would cost to extend the tax-free threshold for Inheritance tax for nieces, nephews, brothers, sisters or grandchildren to be increased from €40,000 to €300,000 and for all other relationships (such as in-laws, cousins, friends and non-relatives) to be increased from €20,000 to €200,000. [31588/26]
View answerThe following response is drafted on the basis that the Deputy is referring to Capital Acquisitions Tax ('CAT') as a whole, which includes inheritance tax and gift tax.
I am advised by Revenue that the cost of increasing the tax-free threshold for CAT for nieces, nephews, brothers, sisters or grandchildren (i.e. the Group B threshold) from €40,000 to €300,000 is estimated to be €308 million.
I am also advised by Revenue that the cost of increasing the tax-free threshold for CAT for all other relationships such as in-laws, cousins, friends and non-relatives (i.e. the Group C threshold) of €20,000 to €200,000 is estimated to be €78 million.
257. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance the amount it would cost to reduce excise on alcohol sold in pubs and restaurants by 10 cent a unit. [31590/26]
View answerExcise duty on alcohol is governed by EU law, with which Irish excise law is obliged to conform. The “Alcohol Structures Directive” (Council Directive 92/83/EEC) lays down a harmonised approach to excise duties on alcohol in the EU. It defines alcoholic beverages and sets out the basis on which excise duties on such products are to be established by Member States as well as the conditions for the application of reduced rates and special regimes. In Ireland, the excise duty takes the form of Alcohol Products Tax (APT) as provided for in Chapter 1 of Part 2 of the Finance Act 2003 (as amended).
APT rates do not relate to alcohol units, as referred to in the Deputy’s question. The rate of APT applying to a particular alcoholic beverage depends on the category it falls within – such as beer, wine, spirits – and its alcohol content which is expressed as the percentage of volume. Reduced APT rates can only be applied in limited circumstances, the main ones being for lower strength products and for independent small breweries or producers of cider and perry, and these types of relief, which are allowed under the Directive, have already been introduced into Ireland's legislation as a feature of our APT regime.
The Directive does not allow scope for the taxation of alcohol to be based on the point of consumption, such as different rates depending on whether consumed in pubs and restaurants or licensed premises generally. Therefore, it would not be legally possible for Ireland to reduce excise duty in respect of alcohol sold in pubs and restaurants, as this would be contrary to the Alcohol Structures Directive.
For the Deputy’s information, APT is charged at the time the excisable product is released from a duty suspension facility (e.g. warehouse) for consumption in the State, or, when following release for consumption in another Member State, is brought in into Ireland. Taxpayers liable to APT are not obliged to disclose how these products are subsequently distributed or sold. Therefore, Revenue does not hold data about the amount of excise associated with alcohol sales across specific types of retail premises, such as off licences, public houses, licenced restaurants, or other licenced premises.
258. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance whether he will review the taxation treatment of individuals who continue in employment beyond the State pension age; the rationale for applying standard income tax and USC arrangements to such individuals despite their long contribution history; whether measures are under consideration to provide targeted tax reliefs or exemptions for older workers who remain in the workforce; and if he will make a statement on the matter. [31615/26]
View answerIt is a general principle of taxation that all income, from whatever source, is income for tax purposes, unless specifically exempted by legislation.
Section 19 of the Taxes Consolidation Act 1997 (TCA 1997) provides that income from offices or employments, and from annuities, pensions, or stipends payable out of State funds, is within the charge to tax under Schedule E. Section 112 TCA 1997 charges income tax on all Schedule E income received in a year, with the exception of proprietary directors who pay tax in the year the income arises. A charge to tax under schedule E is imposed in respect of certain Social Welfare payments by virtue of section 126 TCA 1997. Section 126 (2) TCA 1997 specifically provides that payments made under the old age (contributory) pension (now known as the State pension (contributory)) are deemed to be emoluments to which Chapter 4 of Part 42 (Collection and recovery of income tax on certain emoluments (PAYE system)) applies.
Therefore, employment income, the State pension and occupational pensions are subject to tax under Schedule E. However, the State pension is not subject to Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).
As the Deputy may be aware, the current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers. The age tax credit or the age exemption limits and marginal relief are available to persons aged 65 or over. While reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less per annum.
The Commission on Taxation and Welfare examined the issue of age being a factor for determining the charge to income tax and USC as it narrows the base and breaches the concept of horizontal equity. Further details are set out in the Report of the Commission, available on the Government’s website.
As the Deputy will appreciate, decisions regarding tax incentives and reliefs are normally made in the context of the annual Budget and Finance Bill process. Such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines.
259. Deputy Michael Cahill asked the Tánaiste and Minister for Finance to urgently address the discrimination that exists in respect of inheritance tax when it comes to childless couples and individuals in comparison to couples than do have children (details supplied); and if he will make a statement on the matter. [31686/26]
View answerCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances and is charged at a rate of 33%. For CAT purposes, the relationship between the person giving a gift or inheritance and the person who receives it determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. It is important to say that the group thresholds were most recently increased in Budget 2025 as follows:
The Group A threshold, which in general applies where the beneficiary is a child of the disponer, increased to €400,000 from €335,000.
The Group B threshold increased to €40,000 from €32,500. This threshold applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer.
The Group C threshold increased to €20,000 from €16,250, with this threshold applying in all other cases.
These increases amounted to an increase of approximately 19.4% on Group A, while Group B and C Thresholds increased by 23%.
As the Deputy will be aware, my officials examined CAT as part of last year's annual Tax Strategy Group exercise. The resultant papers outlined the tax policy considerations for the Government including the background for the different thresholds, as well as the options available to it in forming last 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. The Tax Strategy Group paper relating to CAT also examined a number of cost modelling exercises, including proposals to amend the Group B threshold parameters which I am aware a number of Deputies have raised in the past year. My officials intend to include an update of this matter in the Tax Strategy Group papers this year.
As demonstrated by that exercise, there is a significant associated cost with further changes to the group thresholds.
I recently met with the 'End Discrimination in Inheritance Tax' group who are an advocacy group in relation to this matter, and I have committed to further engagement. I do understand the concerns they have raised, along with the burden of capital taxation.
Finally, the Deputy should note that any further changes to the thresholds and who falls within these thresholds must be considered among various other demands within the overall Budget package, as they have been in the past. In that regard, you should note that the CAT group thresholds are kept under review annually by my officials throughout the Finance Bill cycle.
260. Deputy Carol Nolan asked the Tánaiste and Minister for Finance to list the changes to the standard and higher rates of income tax, all tax credits, rates of PRSI and USC, in each budget from 2016 to date, in tabular form; and if he will make a statement on the matter. [31712/26]
View answerAs the Deputy may be aware, all tax policy measures announced in the Budget are set out in the Tax Policy Changes document published on Budget Day. This includes changes to the standard rate income tax band, tax credits and USC. The document provides the estimated costings on a first year and a full year basis, based on the most up to date information available at the time when the measure is announced. The document also includes a high-level description of each tax measure.
The Budget 2026 Tax Policy Changes document can be located at the following link:
www.gov.ie/en/department-of-finance/publications/budget-2026-taxation-measures/
The Tax Policy Changes documents for Budgets 2016 to 2025 can be located on the Budget website for each respective year - www.gov.ie/en/department-of-finance/collections/previous-budgets/
261. Deputy Michael Cahill asked the Tánaiste and Minister for Finance to phase out as a matter of priority, the Universal Social Charge (USC) during this Government term, that was first introduced in January 2011 to stabilise public finances following the 2008 financial crisis, triggering the greatest global recession since the 1930's; and if he will make a statement on the matter. [31715/26]
View answerAs the Deputy may be aware, the ‘Programme for Government 2025: Securing Ireland’s Future’, contains specific undertakings with regard to personal taxation, it commits to “implementing progressive changes in taxation if the economy remains strong, including indexing credits and bands to prevent an increase in the real burden of Income Tax while in the event of an economic downturn and unexpected deterioration in the public finances we would postpone changes to Income Tax credits or bands, as we did in Budget 2021”.
The USC was designed and incorporated into the Irish taxation system in 2011 to replace the Health and Income Levies. Its primary purpose was to widen the tax base and to provide a steady income to the Exchequer to provide funding for public services.
The USC is an individualised tax, meaning that a person’s liability to the tax is determined on the basis of a person’s own individual income and personal circumstances. It is a more sustainable charge than those it replaced and is applied at a low rate on a wide base, which ensures that it is a stable and sustainable source of revenue for the State.
In 2016 joint Department of Finance/Economic and Social Research Institute (ESRI) research found that USC represented a more stable form of revenue than income tax. The findings highlighted that USC revenues would fluctuate by less than income tax revenues whenever income is volatile, for example where the economy moves from a boom into a bust. Given the openness of the Irish economy and consequent susceptibility to economic shocks, the contribution that the USC makes to the stability of the State’s revenue sources is considerable.
The USC yield for 2025 amounted to €5.6 billion, and for 2026, it is projected to total approximately €5.9 billion. Given its significant yield, the USC has played a vital role in meeting the many expenditure demands placed on the Exchequer in recent times. Therefore, if the USC were to be abolished it would be necessary to generate this yield from alternative sources.
262. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance the rationale for reducing the VAT rate for hairdressing and barbering services to 9% from July 2026, while excluding beauty services; the criteria used to determine eligibility for the reduced rate; whether he will consider extending the reduced rate to beauty services, given similar cost pressures; and if he will make a statement on the matter. [31726/26]
View answer266. Deputy Eoin Hayes asked the Tánaiste and Minister for Finance his view on reducing the VAT rate for the beauty industry to 12%; and if he will make a statement on the matter. [31806/26]
View answerI propose to take Questions Nos. 262 and 266 together.
I am advised by Revenue that the VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law is obliged to comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they are exempt from VAT or fall within the categories of goods and services listed in Annex III of the EU VAT Directive, to which Member States are permitted to apply lower VAT rates subject to certain rules.
Beauticians are not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT, and therefore they would fall to be taxed by Member States at their standard rate of VAT – which in Ireland is currently 23%. However, the Directive allows that a Member State may retain certain long-standing VAT arrangements that they had in place, subject to strict conditions including that the terms of the historic arrangement cannot be extended.
On this basis, Ireland is permitted to retain its long-standing application of its reduced VAT rate – which is currently 13.5% – to services related to the care of the human body, which includes beautician services. In accordance with the Directive this arrangement is treated as a ‘parked’ rate, which means that it cannot be reduced below 12%. If Ireland were to cease the application of the parked rate to these supplies, then under the terms of the Directive these services would have to be subject to the standard rate of VAT.
As hairdressing services are specifically included in Annex III and are not a ‘parked’ item, it is possible to apply the 9% rate to them. Therefore, in accordance with Finance Act 2025 the 9% rate will apply to hairdressing services from 1 July 2026. This measure includes hairdressing services provided by beauticians but does not extend to other beauty services.
263. Deputy Aidan Farrelly asked the Tánaiste and Minister for Finance the number of persons subscribed to the childcare plus, childcare save, national solidarity bonds, savings certificates scheme and saving bonds; and the amount held on deposit in respect of each scheme in 2026. [31753/26]
View answerThe National Treasury Management Agency (NTMA) has provided me with the following information on the number of persons subscribed to the childcare plus, childcare save, national solidarity bonds, savings certificates scheme and saving bonds and the amount held on deposit in respect of each scheme in 2026:
Res
|
Product |
Balances End March 2026 |
Account Numbers* End March 2026 |
|
National Solidarity Bonds |
€5,815,015,036 |
375,860 |
|
Savings Bonds |
€2,931,040,862 |
133,862 |
|
Savings Certificates |
€5,715,553,128 |
298,526 |
|
Childcare Plus |
€21,145,962 |
12,405 |
|
Childcare Save |
€35,707,631 |
4,114 |
*Customers may hold more than one account
264. Deputy Aidan Farrelly asked the Tánaiste and Minister for Finance the number and value of prize bonds issued in each year from 2019 to date in 2026; and if he will provide a schedule of the value of prizes issued over that same timeframe. [31754/26]
View answerThe National Treasury Management Agency (NTMA) has informed me that table 1 below shows the number and value of Prize Bonds certificates issued for each year 2019-2026 (to end March).
|
Year |
€ Value |
Volume |
|
2019 |
€538,342,875.00 |
222,398 |
|
2020 |
€730,673,568.75 |
337,656 |
|
2021 |
€667,717,575.00 |
310,757 |
|
2022 |
€614,608,975.00 |
293,011 |
|
2023 |
€489,132,093.75 |
317,271 |
|
2024 |
€350,897,725.00 |
391,385 |
|
2025 |
€364,647,062.50 |
389,633 |
|
March-2026 |
€90,809,093.75 |
99,049 |
The NTMA has also informed me that table 2 below shows the value and volume of prizes issued 2019 – 2026 (to end March).
|
Year |
Number of Prizes |
Value of Prizes |
|
2019 |
248,140 |
17,632,400 |
|
2020 |
280,333 |
19,242,050 |
|
2021 |
228,015 |
15,590,100 |
|
2022 |
237,659 |
16,008,350 |
|
2023 |
309,685 |
24,143,000 |
|
2024 |
475,102 |
45,631,850 |
|
2025 |
458,870 |
44,414,450 |
|
March-2026 |
113,800 |
11,034,800 |
The variable interest rate used to calculate the prize fund was 0.5% in 2019. This was reduced to 0.35% in 2021 and increased to 1.0% in 2023.
265. Deputy Sinéad Gibney asked the Tánaiste and Minister for Finance if his Department is aware of any State investment in companies headquartered in the State of Israel, Occupied Palestinian Territories or companies which have appeared on UN blacklist reports by the relevant Special Rapporteur; and if he will make a statement on the matter. [31791/26]
View answerThe Government has made it clear that it opposes illegal Israeli settlements, which are contrary to international law and damaging to the pursuit of peace in the Middle East. Ireland has not been found wanting in its support of the Palestinian people and has taken practical steps at national, EU and international levels. We have been a clear and leading voice on this. Ireland has provided significant financial support to the people in Palestine since January 2023.
It is important to say from the outset that ISIF, has complete independence in implementing its investment strategy under the NTMA Acts through an investment committee that reports to the NTMA's board.
The Deputy has referenced the A/HRC/59/23 report of the special rapporteur on the situation of human rights in the Palestinian territories occupied since 1967. This was published in July 2025 and discusses the role of various entities in several sectors but does not provide defined criteria or a list.
The Deputy may also be aware of the longer established UN Human Rights Council database (the UN Database) identifying businesses involved in specific activities which was first issued in 2020, updated in June 2023 and most recently updated in September 2025.
ISIF has taken an investment decision to divest from six companies, all of which remain on the updated UN Database, with a total value at the time of the divestment decision of approximately €2.95m. The six companies are Bank Hapoalim BM; Bank Leumi-le Israel BM; Israel Discount Bank Ltd; Mizrahi Tefahot Bank Ltd; First International Bank Ltd and Rami Levi Chain Stores Ltd.
The NTMA also divested from directly held Sovereign bond holdings within the Global Portfolio across Egypt, Israel, and Jordan in July 2025.
ISIF will continue to monitor its holdings to ensure that investments remain aligned with its risk profile and investment parameters and will continue to construct its portfolio within the legislative framework set for it by the Oireachtas.
A list of ISIF investments at the end of 2024 is available in the NTMA Annual Report for 2024. The position at end 2025 will be published in the 2025 Annual Report.
As well as the divestments I have outlined already, ISIF has, to date, also completed several divestment programmes and excluded investments from the Fund. Exclusion is used on a limited basis, reflecting exclusions mandated by legislation including the Fossil Fuel Divestment Act 2018 and the Cluster Munitions and Anti-Personnel Mines Act 2008 and, inter alia, exclusions on sustainable investment grounds including Tobacco and Nuclear Weapons.
Legislation underpinning ISIF, reflects a commitment to be a responsible investor as steward of public assets by protecting and enhancing both the long-term value of the ISIF and the reputation of NTMA in how it delivers its mandate, as manager and controller of the ISIF.
267. Deputy Naoise Ó Muirí asked the Tánaiste and Minister for Finance if modular homes greater than 45sq metres with planning permission will be able to avail of the rent-a-room relief; and if he will make a statement on the matter. [31808/26]
View answerI am advised by Revenue that the estimated cost for increasing the Universal Social Charge (USC) exemption limit from €13,000 to €50,000, as per the proposal outlined by the Deputy, on a first- and full-year basis, is €790m and €905m respectively.
It is important to note that under this proposal, in circumstances where a taxpayer’s income exceeds €50,000 per annum then they pay USC on their entire income as per the below table:
|
Income Bands |
PAYE Income % |
Non-PAYE Income % |
|
€0 - €12,012 |
0.5 |
0.5 |
|
€12,013 - €28,700 |
2 |
2 |
|
€28,701 - €70,044 |
3 |
3 |
|
€70,044+ |
8 |
8 |
|
€100,000 |
8 |
11 |
This is a cost estimate for 2026 and is based on Revenue’s micro-simulation tool, Tax Modeller, using actual data for the latest year available, currently 2023, adjusted for income and employment trends in the interim.
