Written Answers Nos. 285-304
285. Deputy James Geoghegan asked the Minister for Finance if he plans to engage with the Central Bank on the subject of bridging finance for older people seeking to right size; the engagements he has had with the Central Bank and commercial lenders to date; and if he will make a statement on the matter. [56562/25]
Amharc ar fhreagraBridging finance can provide the funds needed to purchase a new home without waiting for the sale of a previous one. Where such finance is secured on a residential property, it is subject to the Central Bank’s mortgage lending rules.
There is no legal or regulatory provision which prevents lenders from providing bridging finance. However, in the case of older or retired people who have limited income, meeting the headline loan-to-value and loan-to-income limits set out in the mortgage lending rules may not be possible. In order to cater for such situations, the mortgage lending rules provide flexibility for a certain proportion of loans to be provided above the headline limits.
This flexibility is considered adequate for general lenders and therefore any issue is likely for more specialised lenders. In this regard, I understand the Central Bank is currently considering the topic of bridging finance, including any potential interactions with the mortgage lending rules. As part of their considerations, I understand they have met various organisations.
The decision of whether or not to provide bridging finance and the setting of the interest rate for such finance is ultimately a commercial matter for individual lenders which neither the Central Bank nor I as Minister for Finance have a role in or should become involved in.
My Department regularly engages with the Central Bank of Ireland on a range of matters including bridging finance. My officials will continue to work closely with relevant stakeholders in relation to this matter.
286. Deputy Emer Currie asked the Minister for Finance to outline the regulations, standards or oversight mechanisms in place regarding the allocation and printing of registration plates; and if he will make a statement on the matter. [56604/25]
Amharc ar fhreagra287. Deputy Emer Currie asked the Minister for Finance the controls or regulations in place to ensure that vehicle registration plates can only be printed or supplied by authorised providers, and that each plate issued is properly linked to a registered vehicle; and if he will make a statement on the matter. [56605/25]
Amharc ar fhreagraI propose to take Questions Nos. 286 and 287 together.
Chapter IV of Part II of the Finance Act 1992 provides for the registration of vehicles, the charging of vehicle registration tax and the assignment of a unique identification mark to each vehicle upon registration. The Vehicle Regulation and Taxation Regulations, 1992 (as amended), set out the detailed requirements for the format of vehicle registration plates. Certain characteristics of Irish plates are aligned with other countries across the EU through conformity with Council Regulation (EC) 2411/98 and the Vienna Convention on Road Traffic.
The National Car Test (NCT) includes checks on the security, location, format, legibility, visibility, and colour of a vehicle’s registration plates. Non-compliance with any prescribed vehicle registration plate requirement is recorded as a “major defect” under the NCT, and a vehicle displaying non-compliant registration plates will fail an NCT test until the issue is fixed.
It is an offence to display a false registration number, the wrong registration number on a vehicle, or the registration plate in an incorrect format. Revenue and An Garda Síochána actively collaborate to tackle vehicle registration offences, which include regular engagement on multiagency checkpoints. These joint efforts aim to ensure compliance with vehicle registration legislation and deter illegal activities.
The Road Traffic and Roads Act 2023 extends number plate enforcement powers to officers of the Revenue Commissioners to include the issuing of Fixed Charge Notices. These measures will be commenced as soon as the necessary operational preparations have been completed by Revenue in conjunction with other agencies, and work is ongoing in that regard.
The manufacture or printing of registration plates is not specifically regulated. The potential of addressing the problem of the use of false registration plates through a regulatory regime for the production and supply of plates was considered previously. It was concluded that such controls would not be effective given the relative simplicity and widespread availability of technology that could be used to manufacture such items.
288. Deputy Richard Boyd Barrett asked the Minister for Finance the number of consumer complaints previously submitted to the Financial Services and Pensions Ombudsman which at the end of 2020, 2021, 2022, 2023 and 2024 were in the formal investigation process but awaiting a preliminary or legally binding decision by the ombudsman, in tabular form; and if he will make a statement on the matter. [56620/25]
Amharc ar fhreagraThe number of active complaints received by the Financial Services and Pensions Ombudsman (FSPO), which did not have a preliminary decision or legally binding decision issued in the years requested, are set out in Table 1 below.
Table 1
|
Year (31 Dec) |
Number of active complaints which did not have a preliminary decision or legally binding decision issued |
|
2020 |
n/a* |
|
2021 |
2,296 |
|
2022 |
2,390 |
|
2023 |
2,514 |
|
2024 |
2,727 |
*The FSPO did not collect data in this format for the years preceding 2021.
While recent data provided by the FSPO indicates that 86% of complaints are closed within 12 months, some, generally more complex complaints, are taking longer to resolve. This reflects the fact that FSPO adjudications are legally binding and therefore must follow due process.
In recent years the number of complaints received by the FSPO has increased, as has the number of complaints being closed annually as set out in Table 2 below.
Table 2
|
Year |
Received |
Closed |
|
2022 |
4,781 |
4,647 |
|
2023 |
6,182 |
5,184 |
|
2024 |
6,185 |
5,907 |
289. Deputy Naoise Ó Muirí asked the Minister for Finance if he will provide an update on the Government’s position regarding the deemed disposal rule for Irish-domiciled investment funds; if he plans to reform or abolish this measure in line with recommendations from the Tax Strategy Group and the Oireachtas Joint Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation, and Taoiseach ; and the timeline for the proposed roadmap on investment taxation reform announced in Budget 2026. [56655/25]
Amharc ar fhreagra303. Deputy Eoin Hayes asked the Minister for Finance the position regarding reforms to the deemed disposal tax in respect of exchange traded funds; and if he will make a statement on the matter. [57102/25]
Amharc ar fhreagra321. Deputy John Lahart asked the Minister for Finance the reason the Government took no actions to address the long-standing issue of deemed disposal for Irish investors; and if he will make a statement on the matter. [57306/25]
Amharc ar fhreagraI propose to take Questions Nos. 289, 303 and 321 together.
The Deputies have asked about deemed disposal and Exchange Traded Funds (ETFs).
Deemed disposal rules apply to investments in Irish domiciled investment funds and life assurance products, as well as equivalent offshore funds and certain foreign life assurance products. For Irish domiciled investment funds and life assurance products, the gross roll up regime applies, and taxation occurs upon the occurrence of a chargeable event, including deemed disposal. Under the deemed disposal rules, and regardless of whether a disposal in fact occurs, tax is levied eight years after an investment is made, and every subsequent eight years. The tax is levied on any gain in the value of the investment from the date of acquisition to the date of the deemed disposal. On the ultimate disposal of the investment, any tax paid because of a deemed disposal is allowed as a credit against the final tax liability. Deemed disposal was introduced as an anti-avoidance measure.
The taxation of ETFs depends on the domicile of the ETF. Irish domiciled ETFs invested by Irish residents are subject to the tax regime that applies to equivalent offshore funds in the EU, EEA or in an OECD member state with which Ireland has a double taxation agreement, and are therefore subject to deemed disposal as a result of the deemed application of the offshore rules.
As the Deputies may be aware, the final report of the Funds Review, ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ was published in October 2024 and included recommendations to support and encourage retail investment, including the removal of deemed disposal. A focus on retail investment is also a key aspect of the European Union Savings and Investment Union.
Recognising the complexities of the current system, I am committed to taking the necessary action to support retail investment in Ireland. The way forward needs to be carefully planned and considered so that the overall approach is consistent and coherent, supporting retail investment while retaining important and necessary anti-avoidance protections, taking account of potential Exchequer impacts. Therefore, my officials are developing a roadmap for the taxation of retail investment, which will set out the intended approach to simplify and adapt the tax framework to encourage retail investment in future Finance Bills. The roadmap will also take account of developments at EU level in respect of the Savings and Investments Union and is expected to be published by early 2026.
While work on the roadmap is underway, I have taken action in Budget 2026, announcing changes to the relevant applicable tax rates. Finance Bill 2025 provides for a reduction in the rate of Investment Undertaking Tax (IUT), Life Assurance Exit Tax (LAET) and the rate of tax applicable to investments in equivalent offshore funds and certain foreign life assurance policies from 41% to 38% from 1 January 2026.
290. Deputy Eoghan Kenny asked the Minister for Finance the amount that has been spent by his Department to conduct tendering processes for public infrastructure projects in 2020, 2021, 2022, 2023 and 2024; and if he will make a statement on the matter. [56692/25]
Amharc ar fhreagraI wish to advise the Deputy that my department has not conducted any tendering processes for public infrastructure projects in the years specified.
291. Deputy Ruth Coppinger asked the Minister for Finance the steps being taken to ensure the Ireland Strategic Investment Fund is not investing in corporations profiting from trade with Israel; and if he will make a statement on the matter. [56712/25]
Amharc ar fhreagraIn accordance with international law, Ireland distinguishes between the territory of the State of Israel and the territories occupied since 1967 and ensures that any bilateral agreements with Israel do not apply to the occupied territories. A whole of Government approach is applied to this policy of differentiation and the Department of Foreign Affairs ensures that there is information available for the public and companies regarding Ireland's policy on settlements on its website.
The Ireland Strategic Investment Fund (ISIF) portfolio is constructed within the legislative framework set for it by the Oireachtas. ISIF has, to date, completed several divestment programmes and excluded investments from the Fund. Exclusion is used on a limited basis, reflecting exclusions mandated by legislation including the Fossil Fuel Divestment Act 2018 and the Cluster Munitions and Anti-Personnel Mines Act 2008 and, inter alia, exclusions on sustainable investment grounds including Tobacco and Nuclear Weapons.
The Deputy may be aware of the UN Human Rights Council Database (the UN Database) identifying businesses involved in specific activities in the Occupied Palestinian Territories which was first issued in 2020, updated in June 2023 and most recently updated to include 158 companies in September 2025 as mandated by the UN Human Rights Council.
ISIF has taken an investment decision to divest from six companies, all of which remain on the updated UN Database, with a total value at the time of the divestment decision of approximately €2.95m. The six companies are Bank Hapoalim BM; Bank Leumi-le Israel BM; Israel Discount Bank Ltd; Mizrahi Tefahot Bank Ltd; First International Bank Ltd and Rami Levi Chain Stores Ltd.
ISIF will continue to monitor its holdings to ensure that investments remain aligned with its risk profile and investment parameters and will continue to construct its portfolio within the legislative framework set for it by the Oireachtas.
ISIF does not comment on individual investments, however a list of ISIF investments are available in the 2024 NTMA Annual Report.
292. Deputy Michael Healy-Rae asked the Minister for Finance why the 9% reduction in VAT in Budget 2026 did not include funfairs and circuses; and if he will make a statement on the matter. [56746/25]
Amharc ar fhreagra312. Deputy Mairéad Farrell asked the Minister for Finance if his attention has been drawn to the exclusion of cinemas from the recent hospitality VAT reduction from 13.5% to 9%; and if he will make a statement on the matter. [57220/25]
Amharc ar fhreagra316. Deputy Emer Currie asked the Minister for Finance if his Department has received any proposals to reduce the VAT rates for the cinema industry; and if he will make a statement on the matter. [57265/25]
Amharc ar fhreagra317. Deputy Emer Currie asked the Minister for Finance the estimated cost of reducing the VAT rate for the cinema industry to 9%; and if he will make a statement on the matter. [57272/25]
Amharc ar fhreagra328. Deputy Paula Butterly asked the Minister for Finance if he will consider extending the recent reduction in the VAT rate to include cinema admissions given the sector’s ongoing challenges, such as rising energy and wage costs, incomplete recovery from the pandemic, and increased competition from global streaming platforms; and if he will make a statement on the matter. [57430/25]
Amharc ar fhreagraI propose to take Questions Nos. 292, 312, 316, 317 and 328 together.
The Programme for Government has committed to support small and medium enterprises, especially those in the retail and hospitality sectors. The VAT reduction announced in Budget 2026 will apply to food and catering services and to hairdressing services.
The measure will not apply to entertainment such as admissions to cinemas, theatres, museums, fairgrounds, and amusement parks.
The estimated full year cost of extending the 9% rate to entertainment is €24 million.
The 9% VAT rate already applies to magazines and periodicals and to admission to sports facilities.
It is not proposed to change the scope of the measure at this time.
293. Deputy Michael Cahill asked the Minister for Finance to clarify an issue regarding the 9% VAT rate for the hospitality sector (details supplied); and if he will make a statement on the matter. [56748/25]
Amharc ar fhreagraI am advised by Revenue, that the VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law is required to comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT. On this basis, Ireland applies a reduced rate of VAT on the supply of accommodation in hotels and similar establishments, and on restaurant and catering services excluding the supply of alcoholic and certain other drinks as part of that service.
As announced in Budget 2026, with effect from 1 July 2026, restaurant and catering facilities which are currently subject to the 13.5% reduced VAT rate will move to the second reduced VAT rate of 9%. This includes meals served in hotels, guesthouses, B&Bs and other similar establishments. This VAT rate change will be legislated for in the forthcoming Finance Bill. Supplies of alcohol, bottled waters, soft drinks, sports drinks and vegetable juices (excluding fruit juice) are not included in the change and will remain liable to VAT at the standard rate even when provided as part of a restaurant or catering service.
The 13.5% VAT rate continues to apply to the supply of accommodation in hotels, guesthouses, and similar establishments, including in the B&B sector.
In practical terms, this means that, where a single charge is made for a package comprising both meals and accommodation, the charge must be apportioned for VAT purposes between the elements taxable at 9% and at 13.5%, in addition to any elements that are chargeable at the standard rate. So, where a B&B charges a single price covering both the overnight stay and breakfast, that total must be apportioned for VAT purposes, with the breakfast element taxable at 9% and the accommodation element at 13.5%. The apportionment should be made on a fair and reasonable basis, having regard to the selling prices of each component if sold separately.
Revenue publishes guidance on its website to assist businesses in determining the appropriate VAT treatment and apportionment in such cases. Existing guidance is available at https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part06-rates-and-exemptions/mixed-supplies-of-goods-and-services/rates-mixed-supplies-of-goods-and-services.pdf, and this will be updated to include examples relevant to the hospitality sector in advance of the introduction of the new changes on 1 July next.
294. Deputy Cormac Devlin asked the Minister for Finance for an update on the work being done by his Department, and agencies under its remit, to facilitate, in line with the commitment under the Programme for Government, the easier return to Ireland for emigrants; and if he will make a statement on the matter. [56787/25]
Amharc ar fhreagraI wish to advise the Deputy that neither the Department of Finance, nor the bodies under the aegis, carry out direct work to facilitate the easier return to Ireland for emigrants, in line with the commitment under the Programme for Government.
295. Deputy James O'Connor asked the Minister for Finance if he will consider including beauticians along with hairdressers in the 9% VAT reduction in the 2026 Finance Bill; and if he will make a statement on the matter. [56803/25]
Amharc ar fhreagraThe EU VAT Directive, which Irish VAT must comply, generally holds that all economic activity is liable for VAT at the standard rate which must be set no lower than 15%. Ireland currently charges a standard rate of VAT of 23%. A member state may apply two reduced rates of no lower than 5% to goods and services which explicitly qualify for such treatment. Ireland currently has two reduced VAT rates of 9% and 13.5%.
Goods and services which may qualify for a reduced rate of VAT must be included in a schedule under Annex III of the Directive. The two industries which will be able to avail of the VAT reduction applied to the hospitality sector, food and catering and hairdressing, are listed under Annex III.
Services offered by beauticians related to care of the human body are not included in this list. Ireland avails of a Derogation under Article 105b which allows for a setting of a VAT rate of 13.5% for services offered by beauticians. Conditions for this are that a rate no lower than 12% must apply and that the rate is "parked" at the chosen rate.
It is not possible to extend the reduction in the VAT rate to other services offered by beauticians. A 9% rate will apply to hairdressing services they provide.
296. Deputy Pearse Doherty asked the Minister for Finance using data from local property taxes, to provide the number of landlords with over 100 residential properties and the total number of properties; the number of landlords with between 50 - 99 residential properties and the total number of properties; the number of landlords with between 20 - 49 residential properties and the total number of properties; the total number of landlords with between 10 -19 residential properties and the total number of properties; the number of landlords with between five to nine residential properties and the total number of properties; the number of landlords with four residential properties; the number of landlords with three residential properties; the number of landlords with two residential properties; the number of landlords with one residential property, by year, from 2016 to date, in tabular form. [56808/25]
Amharc ar fhreagra300. Deputy Pearse Doherty asked the Minister for Finance the total value of all residential property based on local property tax data; the total value of residential property owned by landlords; and if he will make a statement on the matter. [56823/25]
Amharc ar fhreagraI propose to take Questions Nos. 296 and 300 together.
As the Deputy will be aware, local property tax (LPT) is charged on a valuation band basis. Property owners are required to value their property on the valuation date. When filing their LPT return, they are required to select which LPT valuation band their property falls under. For the upcoming valuation period, which will commence in 2026, only properties valued over €2.1 million will be required to declare their specific market value.
Because of how LPT is charged, it is not possible for Revenue to provide a total value figure for all residential property using LPT data. Furthermore, because a marker to identify landlords is not available on the LPT return, it is not possible to provide information on the number of LPT liable properties owned by landlords.
Revenue publish detailed statistics on LPT. This includes the distribution of all liable properties by valuation band and by local authority area. Revenue also publish data on property ownership (i.e. the numbers of owners who own multiple LPT liable properties).
LPT statistics for 2025 and previous years can be found on Revenue’s website: www.revenue.ie/en/corporate/information-about-revenue/statistics/property-taxes/yearly-stats/2025/index.aspx.
297. Deputy Pearse Doherty asked the Minister for Finance the exclusions from the hospitality VAT reduction; the saving associated with each exclusion; and if he will make a statement on the matter. [56809/25]
Amharc ar fhreagraI announced in Budget 2026 that a 9% VAT rate would be applied from 1 July 2026 to the food and catering sector and and hairdressing sector. It is not proposed to extend the measure to these additional sectors at this time.
The estimated full year cost of including businesses supplying accommodation and entertainment for 2026 is €188 million: €164 million for accommodation services and €24 million for entertainment.
298. Deputy Pearse Doherty asked the Minister for Finance the rationale for applying the VAT reduction on new apartments from Budget 2026 given the fact it will only mean savings and higher profitability for apartments which were already viable; and if he will make a statement on the matter. [56810/25]
Amharc ar fhreagraThe Government has committed to the delivery of over 300,000 homes by the end of 2030 as per the agreed upon Programme for Government. In line with this, the revised National Planning Framework outlines that increased density, compact growth, and greater social cohesion through the building of more apartments, especially in urban centers, as a key policy objective.
Analysis from both the Department of Finance and the Department of Housing has found that a viability gap has emerged in the delivery of apartments, with the number of completions seeing a decrease in 2024. To address this, the reduction in VAT applied to sale of newly completed apartments is to further incentivise the construction of compact developments and achieve the policy goals outlined in the revised NPF.
It should be noted that VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. If legislation was introduced that sought to apply different rates of VAT to the sale of identical goods at the same point in time based on the circumstances or timing of when work on those goods began it could breach the principle of fiscal neutrality. This is the principle that supplies of goods or services which are identical or sufficiently similar from the perspective of a consumer should be taxed in the same way.
299. Deputy Pearse Doherty asked the Minister for Finance to provide a list of all jurisdictions outside the EU/EEA that Ireland does not have a double taxation treaty in place, that will apply a non-refundable dividend withholding tax; and if he will make a statement on the matter. [56812/25]
Amharc ar fhreagraI understand this question relates to a proposed amendment, in Finance Bill 2025, to the participation exemption set out in section 831B of the Taxes Consolidation Act 1997.
Section 831B was introduced by Finance Act 2024 and provides a corporation tax exemption to a parent company that receives a qualifying dividend or other type of distribution from a subsidiary that is tax resident in a “relevant territory”. A relevant territory is an EEA state or a territory with which Ireland has signed a double tax treaty. It does not include a territory listed on the EU list of non-cooperative jurisdictions for tax purposes.
It is proposed in Finance Bill 2025 to amend the definition of a “relevant territory” to broaden the geographic scope of the exemption to include jurisdictions outside of the EEA and tax treaty territories, where that jurisdiction generally applies a foreign withholding tax on dividends paid by resident companies to non-resident companies. That foreign withholding tax must be imposed at a nominal rate of tax greater than zero per cent and that foreign withholding tax must have been actually paid on the full amount of the dividend. No amount of that foreign withholding tax can have been refunded, or fall to be repaid, to any person. It will be clear to a taxpayer if tax has been withheld from the gross dividend paid to them, as they will have received a reduced payment. A territory on the EU list of non-cooperative jurisdictions will remain excluded from the regime.
As qualification will depend on the tax system of the subsidiary jurisdiction it is not possible to provide a definitive list of all potentially in-scope jurisdictions. However, based on information publicly available online, subsidiaries located in trading partner jurisdictions such as Argentina, Azerbaijan, Bangladesh, Colombia, Indonesia, Nigeria, Peru, the Philippines, Senegal, Sri Lanka, Taiwan, Tanzania, and Tunisia, are expected to generally come into scope of the exemption regime. Whether or not the participation exemption applies in any given case will depend on all qualifying conditions being met by the relevant companies.
The operation of the participation exemption rules is on a self-assessment basis with the normal Revenue audit and compliance rules applying.
301. Deputy Shónagh Ní Raghallaigh asked the Minister for Finance if he has spoken formally with a person (details supplied) to date in 2025. [56878/25]
Amharc ar fhreagraMr Masato Kanda was elected as the President of the Asian Development Bank (ADB) in November 2024 and assumed office on 24 February 2025. Since his appointment I have not had the opportunity to speak with President Kanda.
302. Deputy Pearse Doherty asked the Minister for Finance for the abridged estimates volume for Budget 2026 for Vote 7, 9 and 10, including the provisional sub head and programme level allocations. [56927/25]
Amharc ar fhreagraChapter 3 of the Budget 2026 Expenditure Report includes the 2026 allocation for each Vote analysed per programme expenditure. The Report also includes an analysis of the 2026 administration cost per subhead. A link to Chapter 3 of the Expenditure Report is provided for reference.
www.gov.ie/en/department-of-public-expenditure-infrastructure-public-service-reform-and-digitalisation/publications/budget-2026-expenditure-reports/.
The allocation for each individual subhead, including the non-administration subheads will be finalised as part of the Revised Estimates process.
304. Deputy Eoin Hayes asked the Minister for Finance the details of the vacant buildings owned by his Department or by agencies under the remit of his Department in Dublin 2, 4, 6, and 6W, including, the address and size in square meters; and if he will make a statement on the matter. [57110/25]
Amharc ar fhreagraI wish to advise the Deputy that my Department does not own any properties and is provided with accommodation by the Office of Public Works (OPW).
The Irish Bank Resolution Corporation Special Liquidation possesses one vacant three bed apartment (118 sqm) in Dublin 4. This is intended to be sold shortly.
None of the other bodies under the aegis of my Department own property that is vacant in Dublin 2, 4, 6 or 6W.
