Dáil Éireann Debate, Thursday - 25 June 2026
258. Deputy Cormac Devlin asked the Tánaiste and Minister for Finance if he can provide an update on the outstanding commitments from the Funds 2030; the timeline for progress on the outstanding items, including aligning the current rate of investment undertaking tax (IUT) with capital gains tax; and if he will make a statement on the matter. [48720/26]
View answerThe Department of Finance undertook a review of the Funds industry in 2023 and the resulting report ‘Funds Sector 2030’ was published in October 2024. The review identified forty-two recommendations to continue to grow this important sector of our economy.
The Programme for Government 2025 included an undertaking to ‘progress and publish an implementation plan for consideration in Budget 2026, taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland.’
An Implementation Plan was published in October 2025. This document includes a full breakdown of the recommendations and those responsible for their implementation.
Of the forty-two recommendations, the most substantive were categorised into four cohorts, to:
1. Grow Exchange Traded Funds
2. Grow Private Assets
3. Grow Retail investment
4. Address the risks and enhance transparency in structured finance
At the time of publication, thirty of the recommendations were either complete, on a path to completion or progressing, including the completion of substantive recommendations on ETFs and the AIF Rulebook by the Central Bank.
Twelve recommendations remained under consideration, including four related to retail investment tax. The following outlines progress on a number of the tax-related recommendations, including regarding the rate of investment undertaking tax (IUT).
A broad review of the S110 regime is being carried out by my Department in conjunction with a major domestic project to reform Ireland’s taxation regime. As part of this review, consideration is being given to the Funds Review Recommendations 30 and 31 on enhancing transparency around Section 110 entities.
Recommendation 34 suggests that the Department of Finance should undertake a public consultation setting out potential options for an entity-level tax for IREFs. Further analysis of the recommendation and the IREF regime was carried out by officials in my Department, on foot of which it was announced in Budget 2026, that the recommendation to introduce an entity level tax will not be progressed, and that instead, a public consultation on proposals to simplify the IREF regime, without limiting its effectiveness, would be held. This position remains under review.
The Deputy has specifically asked about Recommendation 22, aligning the rate of IUT with the rate of capital gains tax (CGT).
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 recommendations 22, 23 and 25 of the Funds Review, into 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 (Recommendation 21), 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 will 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.
