Dáil Éireann Debate, Thursday - 2 October 2025
265. Deputy Michael Murphy asked the Minister for Finance his plans regarding life assurance exit tax (LAET), including consideration of reducing the current 41% rate, abolishing the 1% Government levy, and reviewing the eighth-year deemed disposal rule; and if he will confirm whether reform of LAET will be progressed separately to wider work on exit tax and ETFs as part of the funds review implementation plan. [52715/25]
Amharc ar fhreagraAs you are aware, in October 2024 my predecessor published “Funds Sector 2030: A Framework for Open, Resilient & Developing Markets.” This report sets out 42 recommendations to ensure that, in pursuit of continued growth in the funds and asset management sector, Ireland’s funds sector framework remains resilient, future-proofed, supportive of financial stability and a continued example of international best-practice. Recommendations 23 of the Fund Review Report includes the recommendation set out in your question.
The 2025 Programme for Government has committed to progress and publish an implementation plan taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland. This is a complex area of taxation that encompasses a wide breadth of tax legislation on domestic funds, life assurance products and offshore funds. Detailed consideration is therefore being given to the best way to bring about the necessary reforms and to support a greater level of retail investment in capital markets. It is likely given the breadth of the Funds Sector 2030 review that the delivery of any agreed associated tax measures will take place over multiple Finance Bill cycles. This work will also take account of developments at an EU level in respect of the Savings and Investment Union.
