Dáil Éireann Debate, Thursday - 21 May 2026
208. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance whether the role of wider participation by younger people and PAYE workers in long-term investment in Irish enterprise is being considered as part of any review of the employment investment incentive scheme or related investment schemes in advance of budget 2027; and if he will make a statement on the matter. [38475/26]
View answerOne of the aims of the Savings and Investments Union is to create better financial opportunities across the EU, providing people with more opportunities to invest and provide for their current and future prosperity. In September 2025, the European Commission adopted a Recommendation on increasing the availability of Savings and Investment Accounts (SIAs) in Member States and this included an outline of their key characteristics.
Ireland still does not have a sufficiently diversified savings and investment culture. Too much of people’s hard-earned savings remains in low-yield deposits, where inflation can erode value over time. Deposit accounts are right for many people and for many needs. But they should not be the only practical option. Investment in capital markets can offer households another path to long-term financial wellbeing, while also supporting growth and competitiveness in the wider economy.
At the recent Savings and Investment Forum, I announced the Government’s intention to introduce the legislative framework for an Investment Account in 2026. We want to make investing simpler, clearer, and more accessible for ordinary people, and help their hard-earned money work harder for them over time.
The aim is to legislate for the framework in 2026 and to allow accounts to be offered from 2027. The account will be designed as a simple, one-stop option for individuals. It will also be a key part of a broader rethink of the taxation of retail investment. The Government’s view that the account should be simple, accessible, tax efficient, easy to administer, transparent on fees and portable across borders where possible.
In terms of designing the model that best fits the Irish economy and the needs of Irish households, the views of relevant experts are being considered as well as learning from best international practices.
The tax treatment of retail investments was considered as part of a broader review into the funds and asset management sector in Ireland, which culminated in the ‘Funds Sector 2030’ report that was published in October 2024.
In recognition of the importance of encouraging retail investment, Budget 2026 provided for a reduction in the rate of taxation on returns from Irish and equivalent investment funds and Irish and certain foreign life assurance policies from 41% to 38% which took effect from 1 January 2026.
In addition, Budget 2026 also included a commitment to publish a roadmap in 2026, setting out the intended approach to simplify and adapt the tax framework to encourage retail investment in future Finance Bills. The roadmap, which will be published in the coming months, will take into consideration developments at EU level in respect of the Savings and Investments Union, including the Recommendation on SIAs and continue to draw upon best practice in other countries who operate successful savings accounts.
As for the employment incentive scheme, a number of tax incentives are in place which are intended to encourage investment in indigenous SMEs. These measures include the Employment Investment Incentive (EII) and the Start-Up Capital Investment (SCI) which are income tax reliefs for investment in SMEs by private investors. The Start-Up Relief for Entrepreneurs (SURE) is an income tax relief for people who leave employment, in particular PAYE workers, to set up their own business. The relief for investment in innovative enterprises, also known as Angel Investor Relief, is a capital gains tax relief for investments made in qualifying innovative SMEs.
These reliefs operate under the EU General Block Exemption Regulation (GBER). The GBER is currently undergoing a revision. Once revised the GBER may offer further scope for reform of these incentives, and my Department will consider potential options in due course however the new GBER is not expected ahead of Q4 2026.
