Dáil Éireann Debate, Thursday - 7 May 2026
242. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether any analysis has been conducted by his Department, the Revenue Commissioners, or any external body on whether the deemed disposal regime influences retail investor behaviour, including investment decisions relating to Exchange Traded Funds versus direct equity holdings or non-EU domiciled products; and if so, to provide details. [33770/26]
View answer246. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether any analysis has been conducted on the distributional impact of the deemed disposal regime across income cohorts, including its effect on small and medium retail investors; and if so, to provide details. [33774/26]
View answer247. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether the Department has assessed the impact of the deemed disposal regime on retail participation rates in diversified investment funds; and if so, to provide any data or analysis available. [33775/26]
View answer249. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether the deemed disposal regime has been assessed in the context of recent European Commission recommendations on savings and investment accounts; and if so, to outline any alignment or divergence identified. [33777/26]
View answerI propose to take Questions Nos. 242, 246, 247 and 249 together.
In terms of analysis of the impact of the current taxation system and the deemed disposal rule in particular, on retail investment, I would note that in December 2025, the Central Bank published a report Retail Investor Participation in Ireland Consumer Research and Analysis, which can be found on their website. This report notes that “the decision to invest is driven by a complex interplay of factors, including economic conditions, personal financial circumstances and psychological biases. It is notable that historically, participating in capital markets has not been viewed as an option for most Irish consumers. This combined with periods of significant market volatility may have played a role in the development of a financial culture with relatively low levels of trust and risk appetite, which favours cash and deposits over investments”. The analysis suggests that the key obstacles to investment identified by non-investors are a lack of financial resources, psychological or emotional barriers and knowledge and understanding gaps. Taxation was not identified as significant consideration for non-investors. However, it is the case that for existing retail investors, taxation was identified as a factor in their investment decision. According to the Central Bank’s research, 35% of investors reported that tax is a factor when considering an investment product. A key consideration is value, determined by the return on investment, after fees and tax have been deducted. This Central Bank research and analysis is being considered in the context of the work underway on the roadmap for the taxation of retail investment.
The roadmap will take the Funds Review and the European Commission's Savings and Investment Account recommendation into consideration. A key aspect of the roadmap is the development of a new Irish investment account that aims to reduce the complexities related to retail investment taxation and allows Irish people to grow their savings more efficiently.
