Keira Keogh
Ceist:305. Deputy Keira Keogh asked the Minister for Finance which political parties put in a submission for suggestions on insurance reform; and if he will make a statement on the matter. [57140/25]
Amharc ar fhreagraInsurance Industry
Ceisteanna (305)
Freagraí scríofa
As the Deputy is aware, the Programme for Government- Securing Ireland’s Future commits to a comprehensive series of actions aimed at improving affordability, availability, and transparency across the insurance sector. One of the first steps to deliver on these commitments is the new Action Plan for Insurance Reform, which was published on 24 July.
As part of the Plan’s development, my Department undertook a wide-ranging public consultation which received over seventy detailed submissions from a broad spectrum of stakeholders. These included individual consumers, businesses, public bodies, industry bodies, political parties, and representative associations.
These submissions informed the new Action Plan, helped shape the six thematic priorities, and will continue to guide implementation - ensuring that reform is inclusive, evidence-based, and impactful.
The political parties that made submissions to the public consultation are listed below:
• Green Party
• Labour Party
• Fine Gael
• Social Democrats
Tax Data
Ceisteanna (306)
Peadar Tóibín
Ceist:306. Deputy Peadar Tóibín asked the Minister for Finance the exemptions to carbon tax in place for products that are designed specifically to reduce carbon emissions, including consumer products; and how exemptions for these can be sought. [57144/25]
Amharc ar fhreagraFreagraí scríofa
Ireland’s carbon tax regime is a carbon pricing mechanism directly linking taxation of fossil fuels to carbon dioxide (CO2) emissions: a price is set for a tonne of CO2 and this price is then applied to each fuel type according to the fuel type’s specific CO2 emissions. Carbon taxes are applied under three separate legislative frameworks - Mineral Oil Tax (MOT), Natural Gas Carbon Tax (NGCT), and Solid Fuel Carbon Tax (SFCT). NGCT and SFCT are “pure” carbon taxes whereas MOT comprises a non-carbon and a carbon component. Legislation was introduced in 2020 to provide for a ten-year trajectory of carbon tax increases. Under this trajectory, by 2030 all carbon tax rates will be based on charging €100 per tonne of CO2. Information on MOT, NGCT, and SFCT rates is available on Revenue’s website: at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf.
MOT, NGCT and SFCT law provide for several full and partial carbon tax reliefs for fuels used for specific purposes. Some of these reliefs, such as those for fuels used for producing electricity, are mandatory under EU law. Others, such as those applying to certain fuels used for horticultural production and mushroom cultivation, were introduced in national legislation to provide sector-specific support. Carbon tax reliefs for fuel uses aimed specifically at reducing carbon emissions include MOT, NGCT and SFCT reliefs for fuels used to produce electricity in High Efficiency Combined Heat and Power cogeneration (HECHP) installations. These reliefs incentivise advanced technologies which achieve higher energy efficiencies and reduce fuel consumption. I am advised by Revenue that HECHP operators may, subject to certification of fuel usage by the Commission for Regulation of Utilities, claim relief by way of repayment. Full details are available on Revenue’s website at: www.revenue.ie/en/companies-and-charities/excise-and-licences/energy-taxes/he-chp/index.aspx.
The tax treatment of biofuels and biogas also aims to reduce carbon emissions by incentivising their usage over fossil fuels. Biogas used for non-propellant purposes (e.g. heating) is outside the scope of carbon taxation, and biogas for propellant (e.g. motoring) purposes is fully relieved from the MOT carbon component. Liquid biofuels are also fully relieved from the MOT carbon component of MOT and are subject only to the MOT non-carbon component. I am advised by Revenue that current effective MOT rates on biofuels, along with comparable rates for fossil fuels, are published on Revenue’s website at: www.revenue.ie/en/companies-and-charities/excise-and-licences/mineral-oil-tax/liquid-substitute-fuels/index.aspx.
SFCT law also provides for reliefs intended to incentivise more environmentally friendly alternatives to fossil fuels. Manufactured solid fuel products with a biomass content of 30% or more, qualify for partial relief from SFCT. Further information is available on Revenue’s website at: www.revenue.ie/en/companies-and-charities/excise-and-licences/energy-taxes/solid-fuel-carbon-tax/reliefs.aspx. I am advised by Revenue that SFCT biomass reliefs, and MOT reliefs for biofuels and biogas, operate by way of remission with suppliers declaring volumes of fuel relieved on relevant tax returns.
As biofuels, biogas, and the biomass content of solid fuels are relieved from, or outside the scope of, carbon taxation, they are insulated from annual carbon tax increases. As a result, the tax rate differential between these energy products and fossil fuels will continue to widen as the 10-year carbon tax trajectory is implemented.
Departmental Data
Ceisteanna (307)
Pearse Doherty
Ceist:307. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 351 of 14 October 2025, if the standard fund threshold will increase from €2 million to €2.2 million in 2026; to outline a credible cost associated with the measure that includes change in behaviour that would directly result from this measure; and if he will make a statement on the matter. [57147/25]
Amharc ar fhreagraFreagraí scríofa
In line with section 13 of Finance Act 2024, I can confirm that the first initial increase to the Standard Fund Threshold (SFT) will take place for the year of assessment 2026, with the SFT increasing from its current level of €2 million to €2.2million.
I am informed by Revenue that they are unable provide a costing for changes to the SFT. Information on the numbers and values of individual pension funds or on individual accrued benefits in pension schemes are not generally required to be supplied to Revenue. Therefore, currently there is no readily available underlying data or methodology on which to base reliable estimates of any possible costs arising from changes to the SFT.
However as previously outlined to the Deputy, in the context of the 2024 examination of the SFT, my officials examined the issue of estimating the impact of changes to the SFT using the available information about previous payments of Chargeable Excess Tax (CET) in 2023. Following this examination, the Department prepared some indicative estimated costs of increases to the SFT, based on the information available and assumptions in relation to the basis for the CET paid in 2023. Using the model which generates these costs, the indicative estimated cost to the Exchequer arising from increasing the standard fund threshold to €2.2million would be approximately €10.5 million. There is not sufficient data available to prepare an estimated costing in relation to behavioural change. These costs are based on a reduction of the 2023 CET yield.
My officials and Revenue will continue to monitor the impact, as those changes to the SFT provided for in the Finance Act 2024 come into effect in the coming years.
Central Bank of Ireland
Ceisteanna (308)
Pearse Doherty
Ceist:308. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 348 of 14 October 2025, if any loan sharks rather than fraud cases have been reported to the Central Bank of Ireland since the enactment of the Consumer Credit (Amendment) Act 2022, in June 2022; and if he will make a statement on the matter. [57148/25]
Amharc ar fhreagraFreagraí scríofa
Under the Central Bank of Ireland’s Consumer Protection Code, all financial services firms which are regulated must have a complaint handling procedure in place. Complaints are dealt with by the firms themselves in the first instance.
While the number of complaints received by the Central Bank of Ireland in relation to high cost credit providers is not publicly available, I am informed that since June 2022, its Unauthorised Providers Unit has received three separate complaints concerning two individuals whom the complainants specifically referred to as loan sharks.
It should be noted the term loan shark is not generally used in reporting data and that the Central Bank of Ireland understands the term to typically refer to the practice of illegal lending. Illegal lenders are distinct from high cost credit providers which are authorised by the Central Bank of Ireland. High cost credit providers were previously known as moneylenders and held a moneylender’s licence. The change of name was introduced following the enactment of Consumer Credit (Amendment) Act 2022.
Tax Data
Ceisteanna (309)
Pearse Doherty
Ceist:309. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 350 of 14 October 2025, the cost of the VAT change for new apartment construction for apartments completed and sold in 2025; the cost of the VAT change for new apartment construction for apartments completed and sold in 2026; and if he will make a statement on the matter. [57149/25]
Amharc ar fhreagraFreagraí scríofa
This Budgetary measure has an estimated cost of €250 million to the Exchequer in 2026 with an estimated cost of €16 million in 2025. The Deputy will recall that the November/December VAT period falls into the following year.
These estimates are tentative and reflect a very prudent approach in relation to assumptions made. As data on actual sales of apartments is received the estimates may be revised. Officials will continue to monitor the relevant data as it becomes available.
Departmental Data
Ceisteanna (310)
Pearse Doherty
Ceist:310. Deputy Pearse Doherty asked the Minister for Finance the estimated cost to the Exchequer of capital allowances on the purchase of residential property broken down by investment company, trade company and individual landlord; and if he will make a statement on the matter. [57150/25]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that, in general, the capital expenditure incurred on the purchase of a residential property is not allowable for the purposes of capital allowances.
Previously, relief was available where a residential property came within the scope of the schemes collectively known as ‘Section 23 relief’. Section 23 relief was a tax relief that applied to rented residential property in a tax incentive area. It was available to a person who incurred expenditure on the purchase, construction, conversion or refurbishment of a qualifying property and who let that property, having complied with certain other conditions.
Section 23 type schemes were phased out throughout the 1990s and were terminated in 2008. Expenditure qualifying for relief under certain schemes could be incurred up to 31 July 2008, provided that certain conditions were fulfilled. While the period during which qualifying expenditure had to be incurred has ended Section 23 relief may still be applicable in relation to properties in these areas depending on when the properties were first let.
Further details on the terminated schemes for Section 23 reliefs are available on the Revenue website at:
www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-10/10-11-01.pdf.
The costs of Section 23 reliefs are available in the Cost of Tax Expenditures document:
www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/costs-tax-expenditures.pdf.
I am advised by Revenue that, in relation to claims under these schemes, it is not possible to identify separately the amounts of individual claims which relate to the purchase of properties from the amounts of the claims which relate to other activities.
In relation to whether relief is claimed by a company or a natural person (Corporation Tax or Income Tax), I am further advised by Revenue that due to the low numbers of claimants and the requirement to protect taxpayer confidentiality, it is not possible to further break down the information in the Cost of Tax Expenditures document by tax head or claimant type.
Rental Sector
Ceisteanna (311)
Pearse Doherty
Ceist:311. Deputy Pearse Doherty asked the Minister for Finance the estimated cost to the Exchequer of capital allowances on the cost of furniture and fittings in rental residential property; and if he will make a statement on the matter. [57151/25]
Amharc ar fhreagraFreagraí scríofa
I am advised by Revenue that capital allowances in the form of wear and tear allowances are available in respect of capital expenditure incurred on fixtures and fittings (for example, furniture, kitchen appliances, etc) provided by a lessor for the purposes of furnishing rented residential property. These wear and tear allowances are allowed at a rate of 12.5% of the capital expenditure on the fixture and fittings over a period of eight years.
I am further advised by Revenue that wear and tear allowances for fixture and fittings are not separately categorised by residential or commercial properties on the Form 11 or CT1 tax returns and therefore it is not possible to provide the information requested in relation to residential properties.
Details on capital allowances available in respect of expenditure on fixture and fittings in rented residential property are available on the Revenue website at:
www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-04/04-08-12.pdf.
Question No. 312 answered with Question No. 292.
Tax Data
Ceisteanna (313)
Pearse Doherty
Ceist:313. Deputy Pearse Doherty asked the Minister for Finance all qualifying cost for the higher rate deduction regarding the enhanced corporation tax deduction for apartment construction costs announced in budget 2026, in tabular form; and if he will make a statement on the matter. [57254/25]
Amharc ar fhreagraFreagraí scríofa
In Budget 2026 I announced an enhanced corporation tax deduction for certain costs incurred on the construction of apartment blocks, and for the conversion of non-residential buildings into apartment blocks, to improve the viability of such developments. The measure will be legislated for in the Finance Bill and will be available for projects for which a first Commencement Notice is submitted between 8 October 2025 and 31 December 2030. The enhanced deduction is designed to address the viability gap that currently exists between the cost of developing apartments and viable market prices, by reducing corporation tax payable on profits. Full details of the measure are set out in Finance Bill 2025.
The enhanced deduction is available to companies carrying out a property development trade which consists wholly or mainly of the construction or refurbishment of buildings or structures with a view to their sale. The measure allows a 125% deduction for expenditure that is deductible in computing profits from a property development trade for corporation tax purposes, subject to certain conditions and to a maximum enhanced deduction of €50,000 per apartment in a qualifying apartment block.
To qualify, the property development company must beneficially own the apartment block on the date that the certificate of compliance on completion is lodged with the relevant local authority. Where more than one property development company beneficially owns the apartment block at this time, the legislation will govern apportionment of the €50,000 cap. If the property development company is not the beneficial owner of the apartment block at the time of the lodging of the certificate of compliance on completion, it will not be entitled to any enhanced deduction.
The enhanced deduction is only available in respect of expenditure which falls within the definition of “eligible expenditure”. Eligible expenditure, in respect of a completed apartment block development, means expenditure incurred by a property development company, up to the date on which the apartment block is completed and a certificate of compliance of completion is lodged with the relevant local authority.
The provision is intended to apply to the “hard costs” associated with the construction or refurbishment of completed apartment block developments which includes, for example:
• sub-structure, structure, internal sub-division, external enclosure, finishes and fittings, and associated services;
• basement car park;
• site development costs; and
• qualifying refurbishment costs, such as, reconstruction, restoration, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, where such a refurbishment results in a material change whereby such property is suitable for use as a dwelling having previously not been suitable, such as the conversion of offices or retail spaces into apartments.
Eligible expenditure does not include any capital expenditure and the following costs are also specifically excluded:
• financing costs;
• insurance costs;
• professional and legal fees;
• sales and marketing costs;
• taxes, duties, levies or charges;
• land acquisition costs;
• levies, fees, charges or contributions in respect of the completed development, such as, but not limited to, development contributions, utility connection costs, environmental levies, planning application fees, building control fees, and building energy rating fees.
The enhanced deduction will not be available in respect of expenditure which is met by grant assistance. In addition, to guard against any risk that costs might be inflated, an anti-avoidance provision will apply to ensure that the enhanced deduction will not be available in respect of expenditure that exceeds an arm’s length amount.
Consumer Protection
Ceisteanna (314)
Ken O'Flynn
Ceist:314. Deputy Ken O'Flynn asked the Minister for Finance if he is aware of the growing number of elderly people whose life assurance policies are becoming unaffordable due to annual premium increases; if he will outline what consumer protections currently exist for persons over the age of 70 who have paid premiums for decades but now face either the loss of their policy or sharply reduced cover; if his Department has engaged with the Central Bank regarding this matter [57256/25]
Amharc ar fhreagraFreagraí scríofa
As the Deputy will be aware, neither I as Minister for Finance nor the Central Bank of Ireland can intervene in the provision or pricing of insurance products. These are commercial decisions taken by insurers in line with EU law, specifically the Solvency II Directive, which sets out the framework for insurance within the Single Market.
‘Whole-of-life’ insurance policy provides a policyholder with life cover for their whole life as long as the policyholder makes regular payments and the payments are sufficient to maintain the chosen benefits. This type of insurance policy will pay a lump sum on the death of the policyholder. Regular payments into the plan cover the cost of providing the benefits chosen. In the early years of such a plan, payments are higher than the cost of the policyholder’s benefits, with the extra monies paid invested into the plan’s fund. However, protection benefits get more expensive as policyholders get older and the risk of death increases.
For later years of reviewable whole-of-life policies, the cost of the benefits/life cover increases significantly, and in order to keep the level of benefits at the current level of payments, the difference is made up from the plan fund.
An insurance company will carry out regular reviews of these plans to see if the consumer’s regular premium, plus any fund which has been built up, is enough to cover their chosen benefits for their reviewable protection plan. These reviews usually take place every 5 years. However, for older lives assured (70 years and upwards), these reviews make take place every year.
During such a review, the life firm will consider whether the premium being paid is sufficient to maintain the cover on the policy until the next review date. If the insurer establishes that the premium is insufficient to maintain the cover as a result of the review, the policyholder is usually given the following options:
• Pay an increased premium in order to keep the current levels of cover on the policy;
• Reduce the cover on the policy to a level which can be supported by the current premium.
The CBI Consumer Protection Code (CPC) provides robust and extensive protections to consumers when engaging with regulated financial services. Under the current CPC, firms are required to act honestly, fairly and professionally in the best interest of consumers. The updated Code now requires regulated firms to incorporate customers’ interests into their strategy and decision-making, places a significant focus on firms’ obligations to inform effectively and introduces improved safeguards for consumers, including consumers in vulnerable circumstances (e.g. elderly people).
In addition, it is the Central Bank of Ireland’s expectation that when consumers are sold any product, including unit linked whole-of-life insurance, that the risks of that product are fully explained to the customer. In order to avoid mis-selling, the sale of insurance products should always be accompanied by a demands-and-needs test on the basis of information obtained from the customer. When undertaking a suitability assessment, regulated firms must ensure that the product or service is consistent with the consumer’s investment objectives, as well as attitude to risk.
Any consumer who is dissatisfied with the service they have received from their insurance provider should make a formal complaint, and thereby give the provider an opportunity to resolve the issue. When this process has been completed, a consumer may then complain to the Financial Services and Pensions Ombudsman (FSPO) if they are not satisfied with the final response. The FSPO is a statutory office that acts as an independent arbiter of disputes which consumers may have with their financial service provider.
Consumers may also wish to directly contact Insurance Ireland, the official industry body, which provides an Insurance Information Service to assist those experiencing difficulties with insurance coverage or claims. This service can be reached by calling 01-676-1820 or emailing feedback@insuranceireland.eu.
Additionally, Brokers Ireland can offer advice and access to a wide range of insurance products and providers, helping consumers to identify suitable cover. They can be contacted at 01-661-3067 or via insurancequeries@brokersireland.ie.
Legislative Process
Ceisteanna (315)
Pearse Doherty
Ceist:315. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 352 of 14 October 2025, to provide further detail on how the legislation was functioning in relation to balancing allowances arising in respect of intellectual property asset; the cost to the exchequer of the ring-fencing and 80% not being applied to balancing allowances in 2020, 2021, 2022, 2023, 2024 and 2025 as a result of allowances being used at a faster rate than was intended; and if he will make a statement on the matter. [57262/25]
Amharc ar fhreagraFreagraí scríofa
Under general rules for capital allowances and balancing allowances, that is the rules as they apply to assets other than specified intangible assets, such as plant and machinery, capital allowances and balancing allowances are treated as trading expenses in computing a company’s trading profits assessable to corporation tax. This means such capital allowances and balancing allowances can create or increase a trading loss in certain circumstances. Loss relief provisions can allow the offset of a trading loss against other income of the company or within the corporate group, subject to satisfying the necessary conditions.
The ring-fencing and 80% cap provisions applicable to capital allowances arising from specified intangible assets provide that it is not possible for companies to generate deductions that are in excess of the income arising from the relevant trade of managing, developing and exploiting such intangible assets. However, it was recently identified that the ring-fencing and 80% cap provisions did not apply to balancing allowances arising on specified intangible assets. Without the application of these provisions to balancing allowances arising on specified intangible assets, such balancing allowances were treated the same as balancing allowances arising on assets other than specified intangible assets, such as plant and machinery.
Following a Financial Resolution passed by the Dáil on Budget Day, the ring-fencing and 80% cap provisions will apply to any balancing allowance in respect of specified intangible assets which arise on or after 8 October 2025, and this is now being confirmed in the Finance Bill.
It is important to note that the application of the ring-fencing and 80% cap provisions to balancing allowances affects the timing of relief only, it does not affect the overall quantum of relief and it does not disallow such allowances permanently. This is because any amounts restricted in one accounting period as a result of such provisions would be available for carry forward and use in a subsequent accounting period, subject to the application of the ring-fencing and 80% cap provisions in that period.
Statistical information is not available for balancing allowances that arose on specified intangible assets between 2020 – 2025 as companies are not required to separately report such information in their corporation tax return. It is therefore not possible to ascertain the amount of trading losses that may have been created or increased by virtue of balancing allowances arising on specified intangible assets.
I am however advised that, while it would depend on the facts and circumstances of each specific case, in general, it is less likely for a balancing allowance to arise in respect of a specified intangible asset than a balancing charge, due to the method by which capital allowances on specified intangible assets are calculated.
Allowances available under section 291A are by default based on the amount charged to a company’s Profit and Loss account or Income Statement for the accounting period in respect of the amortisation or impairment of the specified intangible asset (“accounts basis”). Alternatively, companies may also opt for a fixed allowance over 15 years (“fixed basis”).
Where the accounts basis is adopted, the tax written down value of the specified intangible asset will be equal to the cost of the asset, less any amortisation or impairment amounts recorded in the accounts of the company. As certain decreases in the value of the asset will already effectively be reflected in the tax written down value, by virtue of capital allowances being determined based on the amortisation and impairment amounts recorded the accounts of the company, this decreases the likelihood that the proceeds received on a balancing event will be significantly less that the tax written down value and give rise to a balancing allowance.
Companies would generally opt for the fixed-rate basis where the amortisation rate is uncertain or expected over a longer period than 15 years. For this category of assets, where allowances are claimed on a fixed basis, it unlikely that a balancing allowance would apply on a balancing event, as the sales proceeds would be expected to exceed the tax written down value.
Notwithstanding the above it was considered important, once the gap in the ring-fencing and cap provisions was identified, to make immediate moves to address the issue, and for this reason corrective legislation has been introduced via Financial Resolution and Finance Bill 2025.
Question No. 316 answered with Question No. 292.
Question No. 317 answered with Question No. 292.
Local Authorities
Ceisteanna (318, 320)
Erin McGreehan
Ceist:318. Deputy Erin McGreehan asked the Minister for Finance the specific actions local authorities must undertake for the living city initiative to commence in newly designated areas. [57278/25]
Amharc ar fhreagra
Cathal Crowe
Ceist:320. Deputy Cathal Crowe asked the Minister for Finance the criteria used to determine which cities and towns are included in the living city initiative; if a town (details supplied) will be able to join the initiative; and if he will make a statement on the matter. [57302/25]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 318 and 320 together.
The Living City Initiative (LCI) is a targeted measure which is aimed at very specific areas in urgent need of regeneration, it is provided for under sections 372AAA to 372AAD of the Taxes Consolidation Act 1997. It currently offers income or corporation tax relief for qualifying expenditure incurred in the refurbishment and conversion of qualifying residential and commercial buildings located within ‘Special Regeneration Areas' (SRAs) of the cities of Cork, Dublin, Galway, Kilkenny, Limerick and Waterford.
In my recent Budget address, I announced a number of enhancements to the LCI to strengthen the scheme to be included in Finance Bill 2025. The Bill was published on 16 October last.
I also announced that the LCI would be extended to the regional centres of Athlone, Drogheda, Dundalk, Letterkenny and Sligo.
The reason for the extension of the scheme to these places is that they are the five regional centres set out in the National Planning Framework. In particular, National Policy Objective 15 of the Framework provides for the application of:
"a tailored approach to urban development..."(s)trengthening Ireland’s overall urban structure, particularly in the Northern and Western and Midland Regions, to include the regional centres of Sligo and Letterkenny in the North-West, Athlone in the Midlands and cross-border networks focused on the Letterkenny-Derry North-West City Region and Drogheda-Dundalk-Newry on the Dublin-Belfast corridor...."
SRAs are designated by statutory order made by the Minister for Finance in accordance with powers provided for in the Taxes Consolidation Act 1997.
The existing SRAs for the LCI were designated following consultation with the relevant city councils and an independent review by a third party advisor. Specific criteria were set down in respect of the areas which should be included within the remit of the LCI which were required to be taken into account by the relevant councils when putting forward the proposed SRAs for each city.
The designation of the new SRAs will require careful planning and preparation in consultation with the relevant Local Authorities over the coming period. Engagement with these Local Authorities will commence in due course to set out the next step in the process.
Departmental Reports
Ceisteanna (319)
Carol Nolan
Ceist:319. Deputy Carol Nolan asked the Minister for Finance the details of all reports, including consultancy reports commissioned by his Department from 1 January 2024 to date in 2025, that could be categorised as not for external publication or marked for internal use only; the cost of each report; and if he will make a statement on the matter. [57290/25]
Amharc ar fhreagraFreagraí scríofa
I wish to advise the Deputy that the sole report prepared by my Department that falls within the specification of the Deputy’s question is the Anti-Money Laundering Steering Committee (AMLSC) 2023 Annual Report. It was prepared by Department of Finance staff in 2024, for internal use only, at no extra cost.
Question No. 320 answered with Question No. 318.
Question No. 321 answered with Question No. 289.
Departmental Correspondence
Ceisteanna (322)
Niamh Smyth
Ceist:322. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied); if the individual qualifies under the scheme in such circumstances; and if he will make a statement on the matter. [57311/25]
Amharc ar fhreagraFreagraí scríofa
The Help to Buy (HTB) incentive, is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. It also aims to encourage additional supply of new houses by supporting demand.
HTB provides a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act 1997 (TCA 1997) outlines the definitions and conditions that apply to the scheme.
The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:
• €30,000; or
• 10 per cent of the purchase price of the new property; or,
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
Based on the latest available data (30 September 2025), the scheme has supported almost 60,000 individuals or couples to buy or build their own home.
I am advised by Revenue that a claim can be made in respect of HTB, either where an individual purchases a new house or apartment or draws down a mortgage for a self-build property.
Section 477C(3) TCA 1997 requires that, where an individual claims HTB relief on the purchase of a new house or apartment, they must enter into a contract with a qualifying contractor.
Revenue further advises that Section 477C (1) TCA 1997 requires that a property be a “qualifying residence”. This is defined as "a new building which was not, at any time, used, or suitable for use, as a dwelling”.
Revenue confirms that the claimant purchased the property from a contractor who is not a qualifying contractor for the purposes of HTB. Additionally, Revenue further confirms that documentation provided by the claimant demonstrates that the property was completed to a stage where it could not reasonably be considered a self-build property. Therefore, the application does not qualify for HTB as does not satisfy the eligibility conditions prescribed in the legislation.
In the event that the contractor registers as a qualifying contractor for the purposes of HTB, and all other conditions are met, the claimant would qualify for relief. To become a qualifying contractor, a contractor must have a Relevant Contract Tax rate of zero or 20% in place and be in possession of tax clearance. They must also complete and submit a Form-HTB1 together with supporting documentation. Full details on how to become a qualifying contractor are available on the Revenue website at: www.revenue.ie/en/property/documents/htb-summary-contractors.pdf.
Tax Credits
Ceisteanna (323, 324, 325)
Naoise Ó Muirí
Ceist:323. Deputy Naoise Ó Muirí asked the Minister for Finance his plans to allow for companies to claim the increased 35% research and development tax credit from 1 January 2026; and if he will make a statement on the matter. [57317/25]
Amharc ar fhreagraNaoise Ó Muirí
Ceist:324. Deputy Naoise Ó Muirí asked the Minister for Finance if he will consider amending the Taxes Consolidation Act 1997 to provide for companies to claim the research and development credit from 1 January of each year, irrespective of when their account periods commence; if he agrees that such an initiative will improve Ireland's competitiveness given the current geopolitical and prevailing trading environment; and if he will make a statement on the matter. [57318/25]
Amharc ar fhreagraNaoise Ó Muirí
Ceist:325. Deputy Naoise Ó Muirí asked the Minister for Finance if companies will be allowed to treat 100% of a research and development employee's emoluments as qualifying expenditure provided that at least 95% of the employee's time is spent on eligible research and development activities; if such claims can be made from 1 January 2026 irrespective of when a company's accounting period starts in 2026; and if he will make a statement on the matter. [57319/25]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 323, 324 and 325 together.
A 30% R&D tax credit is available in respect of expenditure incurred wholly and exclusively, in the carrying on by a company on qualifying R&D activities. The primary policy objective behind the R&D tax credit is to increase business R&D in Ireland, which helps to build an innovation-driven domestic enterprise sector and enables Ireland to remain competitive in attracting quality employment and investment in R&D.
It is clear that research and development is a key driver for economic growth and high value employment, and R&D supports are critical to Ireland’s continuing competitiveness in a challenging global environment. In line with the Government’s commitment to enhance the R&D regime and to support productive and innovative businesses, Finance Bill 2025 introduces several enhancements to the regime, including:
• increasing the rate of the credit from 30% to 35%;
• increasing the first-year payment threshold amount to €87,500, to further support smaller R&D projects; and
• an administrative simplification measure to allow 100% of an R&D employee’s emoluments as qualifying costs where at least 95% of their time is spent on qualifying R&D activities.
For corporation tax purposes the profits or losses of a company are computed by reference to the company’s “accounting period”. An accounting period is normally the period of 12 months for which the company makes up its financial statements and a company has the flexibility to choose its financial year end in line with its requirements, subject to the requirements of the Companies Act 2014.
It is a common practice for new corporation tax measures to apply by reference to accounting periods rather than from a fixed date. While this can result in a different effective date for companies depending on their chosen year-end, it follows the normal structure of the corporation tax system and is intended to avoid complexities that would otherwise be introduced from split-year accounting requirements.
The Irish corporation tax system operates on the basis of self-assessment. Under the self-assessment system, a company must file its return, and pay any tax due, on or before the 23rd of the ninth month after the end of the accounting period. Thus, for example, an accounting year ended 31 December 2026 is due to pay and file its corporation tax return by 23 September 2027.
Subject to the passing of Finance Bill 2025, the Budget 2026 R&D measures will apply in respect of accounting periods the specified return date of which is on or after 23 September 2027. In broad terms, this means that the measures will apply in respect of accounting periods commencing following enactment of the Bill.
Question No. 324 answered with Question No. 323.