Written Answers Nos. 206 - 215
206. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance whether consideration has been given to the introduction of additional tax incentives aimed at encouraging investment in renewable energy technologies and residential energy efficiency upgrades, including apartment-based solar generation technologies such as plug in balcony solar systems; and if he will make a statement on the matter. [39892/26]
View answerIreland’s tax system supports efforts to transition to a low-carbon economy and, over the past number of years, several tax reforms have been implemented to encourage behavioural change and support energy efficiency. This includes a number of measures specifically to support home energy efficiency improvements and upgrades, including the following:
• Following amendments in the VAT Directive in 2022, the Government was able to introduce a zero rate of VAT, effective from May 2023, for the supply and installation of solar panels on private dwellings. In Budget 2025, the lower 9% rate of VAT was extended to the supply and installation of heat pump heating systems.
• Section 216D of the Taxes Consolidation Act 1997 provides a relief from income tax to encourage more taxpayers to engage in micro-generation of electricity at their own homes from renewable technologies. The tax relief was due to expire on 31 December 2025 and Budget 2026 provided for an extension to this scheme to 31 December 2028.
• Section 97B of the Taxes Consolidation Act 1997 provides a tax incentive for small-scale landlords who undertake retrofitting works while the tenant remains in situ, which has the aim of encouraging landlords to improve the energy efficiency of rented residential properties.
With regard to business investment in energy efficiency, the Accelerated Capital Allowances (ACA) scheme for Energy Efficient Equipment (EEE) is designed to improve energy efficiency among Irish companies by incentivising companies and sole traders to purchase highly energy efficient equipment. The ACA EEE scheme provides for a 100% up-front wear and tear allowance for qualifying expenditure incurred in a given year, providing a cash flow benefit to the taxpayer as the allowances would normally be available over eight years at 12.5% per annum.
Overall, Ireland’s tax system supports climate resilience by incentivising the uptake of low- and zero-emission vehicles, lowering long-term energy costs, and supporting households most affected by increasing fuel and heating costs through targeted supports.
Tax policy measures and options with regard to behavioural change and emissions reductions are kept under review as part of the annual Tax Strategy Group and Budgetary cycle.
207. Deputy Colm Burke asked the Tánaiste and Minister for Finance to confirm the details of the new proposed savings and investment scheme; when it is likely to be put in place; and if he will make a statement on the matter. [39422/26]
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 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.
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 Commission's Recommendation on investment accounts and officials will continue to draw upon best practice in other countries who operate successful savings accounts.
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, low cost and 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.
Officials in my Department are currently developing policy options regarding the investment account framework which will form part of the deliberations for Budget 2027 over the coming months.
208. Deputy Paul Lawless asked the Tánaiste and Minister for Finance if he will provide an update on the implementation of the Action Plan for Insurance Reform 2025-2029; and if he will make a statement on the matter. [39396/26]
View answerThe Government remains firmly committed to delivering measures to reduce insurance costs via the Action Plan for Insurance Reform 2025–2029. Significant progress was made under the 2020 Action Plan for Insurance Reform, including the introduction of the Personal Injuries Guidelines, legislative reforms to rebalance the duty of care, and the establishment of the Office to Promote Competition in the Insurance Market.
The 2025 Action Plan sets out a number of priority actions, focused on areas where the greatest impact on transparency, affordability and availability of insurance can be achieved. As part of this, a new Motor Insurance Transparency Code was launched on 2 March 2026. The Code is designed to enhance trust, clarity, transparency, and understanding in how motor insurance premiums are communicated to consumers. The Government is also actively progressing the “Right to be Forgotten” legislation, which represents a key Programme for Government commitment and an important measure to support fair access to mortgage protection insurance for cancer survivors. In late April, Cabinet approved Government amendments to the Central Bank (Amendment) Bill 2025, it will be at Committee Stage this week and it is my intention, with the cooperation of all concerned, to progress the legislation swiftly through the Oireachtas in advance of the summer recess.
Work is also ongoing in the Office to Promote Competition in the Insurance Market (OPCIM) to enhance competition in the insurance market to address capacity issues, and examining how Ireland can be effectively positioned and promoted as a leading jurisdiction for insurers.
The Government remains firmly committed to addressing the cost and availability of insurance through the implementation of the reforms set out in the Programme for Government and the Action Plan for Insurance Reform 2025–2029. These measures are intended to support the development of a fairer, more sustainable, and more competitive insurance market, delivering tangible improvements in cost, choice, and access for all consumers.
211. Deputy Michael Cahill asked the Tánaiste and Minister for Finance if it is legal for Revenue Commissioners to request households to pay local property tax on modular homes constructed in back gardens that are on the same folio as the main dwelling; and if he will make a statement on the matter. [39403/26]
View answer447. Deputy Michael Cahill asked the Tánaiste and Minister for Finance if it is legal for the Revenue Commissioners to request households to pay local property tax on modular homes constructed in back gardens that are on the same folio as the main dwelling; and if he will make a statement on the matter. [39209/26]
View answerI propose to take Questions Nos. 211 and 447 together.
Local Property Tax (LPT) is a self-assessed tax which Revenue administers in accordance with the Finance (Local Property Tax) Act 2012 (as amended). The legislation provides that LPT is chargeable in respect of a “residential property”, being a building, or a part of a building, that is in use, or suitable for use, as a dwelling and that is permanently attached to the ground.
When valuing a residential property for LPT purposes, the value of lands and other buildings appurtenant to or enjoyed with the property up to one acre (0.4047 hectares) should be included. This includes amenities such as yards, gardens, driveway or parking spaces, garages, sheds and garden rooms used as home offices. It should be noted that a part of a building or structure can be a residential property in its own right, and a building can contain a number of different residential properties for the purposes of LPT. Where a modular home in the garden of a residential property is permanently attached to the ground and is suitable for use as a separate dwelling in its own right, a separate LPT charge may apply.
The treatment for LPT purposes will depend on the application of the legislation to the facts and circumstances of each case. Further information can be found in Tax and Duty Manual Part 01-01 Meaning of “residential property” at www.revenue.ie/en/tax-professionals/tdm/local-property-tax/part-01/01-01.pdf.
212. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance for an update on the progress made on the Action Plan for Insurance Reform launched last July; and if he will make a statement on the matter. [39637/26]
View answerThe Government is progressing the actions in the Action Plan for Insurance Reform 2025-2029 to further reform the insurance sector in Ireland, with a view to ensuring greater transparency and improving the affordability and accessibility of insurance for all consumers.
Significant progress has been made under the 2020 Action Plan for Insurance Reform, including the introduction of the Personal Injuries Guidelines, legislative reforms to rebalance the duty of care, and the establishment of the Office to Promote Competition in the Insurance Market.
As part of the 2025 Action Plan, a new Motor Insurance Transparency Code was launched on 2 March 2026, designed to enhance trust, clarity, transparency, and understanding in how motor insurance premiums are communicated to consumers. Work is also ongoing in the Office to Promote Competition in the Insurance Market (OPCIM) to enhance competition in the insurance market to address capacity issues, and to examine how Ireland can be effectively positioned and promoted as a leading jurisdiction for insurers.
My Department is also actively progressing the “Right to be Forgotten” legislation, which represents a key commitment under the Programme for Government and is an important measure to support fair access to mortgage protection insurance for cancer survivors. On 27 April 2026, Cabinet approved Government amendments to the Central Bank (Amendment) Bill 2025, it will be taken at Committee Stage this coming week and it is my intention, with the cooperation of all concerned, to progress the Bill swiftly through the Oireachtas in advance of the summer recess.
The Government remains firmly committed to addressing the cost and availability of insurance through implementing reforms which foster a supportive, competitive and sustainable insurance market for the benefit of all consumers.
214. Deputy Shay Brennan asked the Tánaiste and Minister for Finance if he will ensure the new Ireland for Finance Strategy includes new measures and structures to prioritise the competitiveness of the Irish funds industry; and if he will make a statement on the matter. [39400/26]
View answerGovernment recognises the importance of the sector to the international financial services sector in Ireland. In October 2024 ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’, also known as the Funds Review, was published. It was a wide-ranging review which included 42 recommendations across a wide range of areas to support growth in the funds and asset management sector.
An Implementation Plan was published in October 2025, as committed to in the Programme for Government. At the time of publication, thirty of the recommendations were either complete, on a path to completion or progressing including completion of substantive recommendations on Exchange-Traded Funds ETFs and the AIF Rulebook, both by the Central Bank. An amendment was also made in Finance Act 2025 to support the growth of private assets through Investment Limited Partnerships.
In line with a further recommendation, the first annual savings and investment forum was held on 31 March 2026.
Eleven recommendations remain under consideration, including four related to retail investment tax which will take account of developments at EU level.
These four recommendations are being considered as part of the work underway to prepare a roadmap for the taxation of retail investment. This roadmap, which is a Budget 2026 commitment, will set out a proposed approach to simplify and adapt the tax framework to encourage retail investment, and is expected to be published in the coming months. Ahead of the roadmap, Finance Act 2025 reduced the rate of taxation that applies to Irish and equivalent offshore funds and Irish and foreign life assurance products from 41 per cent to 38 per cent from 1 January 2026. This change also applies to investments in ETFs that are taxed under these regimes.
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. The aim is to legislate for the framework in 2026 and to allow market participants to offer accounts from 2027. The funds and asset management sector will be a key partner in growing retail investment.
Ireland for Finance is a whole-of-Government strategy for the development of the international financial services sector in Ireland. While the new Ireland for Finance strategy is still under development, ambitions of the strategy will be for Ireland to:
• Remain a competitive and trusted global international financial services centre;
• Have capacity to scale and attract expertise to enable economic growth in EU;
• Leverage technological capability to support digital transformation; and
• Develop and deepen links with domestic businesses and citizens.
These ambitions will be delivered through enhanced competitiveness in the form of predictable and pro-enterprise policy; simplification and modernisation of the legislative regime; through sectoral and thematic focus on high-impact areas; as well as by focusing on innovation. Development of skills and ensuring a strong talent pipeline remain key enablers of our ambitions.
My officials are working towards finalising the draft text, and working towards Government approval of the strategy and I expect that it should then be published over the summer months.
215. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the projected increase in VAT revenue on home heating oil as a result of the increase in home heating oil price. [39795/26]
View answerThe VAT rating 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 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.
Home heating oil is not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT. 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 the supply of hydrocarbon oil of a kind used for domestic or industrial heating fuel.
I am further advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to determine the VAT yield on home heating oil from taxpayer information alone. However, using Revenue and third-party data sources, a tentative estimate of the VAT generated on home heating oil for the period January to March 2026 is €43.3 million, compared to €38.9 million for the same period in 2025.
It should also be noted that the Government deferred the increase in carbon tax which was due to place on 1 May 2026 until 14 October 2026. The estimated cost of this deferral is approximately €22 million.
