Dáil Éireann Debate, Tuesday - 23 June 2026
258. Deputy Emer Currie asked the Tánaiste and Minister for Finance if he is considering aligning the current rate of investment undertaking tax with capital gains tax in Budget 2027 as an affordable and effective means of increasing retail investment participation, and to ensure existing investors are not left behind in any planned new tax measures to incentivise retail investment. [47514/26]
View answerI am aware of the need to encourage and support retail investment.
Capital Gains Tax (CGT) is chargeable on a gain arising on the disposal of an asset, at the rate of 33%. The first €1,270 of chargeable gains of an individual in any year are exempt from CGT. The existence of a 33% rate of CGT can help to maintain a balance between the rate of taxation of capital assets and the higher rate of income tax. There are a number of targeted reliefs, including principal private residence relief, retirement relief and revised entrepreneur relief.
Irish resident investors investing through investment funds and life assurance policies are subject to tax through the gross roll-up regime. Under the gross roll-up regime, no annual tax on income or gains arising to a fund is charged but the fund is responsible for deducting Investment Undertaking Tax (IUT) on the triggering of a chargeable event. Generally, chargeable events occur when value passes from the fund to the investor or on a deemed disposal every 8 years.
I am committed to taking the necessary action to support retail investment in Ireland. Budget 2026 introduced a reduction in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products, from 41% to 38%.
Budget 2026 also included a commitment to publish a roadmap for the taxation of retail investment, setting 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. The roadmap will take the Commissions Savings and Investment Account recommendation, and the Funds Review in to consideration. The roadmap is expected to be published in summer 2026.
As I announced at the first annual Savings and Investment Forum, on 31 March, another key aspect of the roadmap is the development of a new investment account that aims to reduce the complexities related to retail investment taxation and which allow individuals to grow their savings more efficiently. The key guiding principles underlying the design of the new investment account are simplicity for the investor, a beneficial tax treatment for a range of investments, preserving individual funding of pensions and a focus on encouraging new retail investors.
