Written Answers Nos. 217-236
217. Deputy Pa Daly asked the Tánaiste and Minister for Finance the contingency plans which exist for the potential €26 billion in fines Ireland could face if climate targets are missed; if he has met with the Minister for the Environment; Climate and Communications or the Taoiseach to address this; and if he will make a statement on the matter. [72580/25]
Amharc ar fhreagraFirstly, I would like to address the Deputy by saying that I am aware of the latest report from the Irish Fiscal Advisory Council (IFAC) and the Climate Change Advisory Council (CCAC) highlighting the potential compliance cost implications of climate change and emissions reductions targets for Ireland. I can assure the Deputy that similar analysis is being undertaken across Government in this area, and my officials are engaged with other Departments on this work. It must be acknowledged however that there is considerable uncertainty around the emissions figures and therefore cost estimates are speculative at this stage.
Secondly, the main objective of Government policy has been, and continues to be, achieving compliance with our targets through reducing emissions and increasing renewable energy generation. The agreed Programme for Government restates our determination that Ireland, together with our EU partners, will play its full part in tackling climate change. The Environmental Protection Agency (EPA) has shown that emissions reductions are being made with Ireland’s greenhouse gas emissions decreasing for the last three years. However, we in Government also acknowledge that there is an imperative to go further taking climate action faster and at scale, particularly over the next five years.
To this extent, our contingency plan is clearly stated across the many iterations of our Climate Action Plans. The Climate Action Plan 2025 (CAP25) provides a roadmap for halving Ireland’s emissions by 2030 and reaching net zero by no later than 2050, as committed to in the Climate Action and Low Carbon Development (Amendment) Act 2021. The Government has been delivering by improving our electricity system, through investing in renewables sources of energy, by increasing public transport as well as the electric vehicle (EV) share of passenger cars, by ensuring over half-a-million people insulate their homes with technologies like heat pumps and district heating, and by supporting nature restoration, to name but a few measures.
Finally, as Deputy will be aware, Government is committed to a carbon tax regime that is progressive with revenue raised from increases in the carbon tax since 2020 being allocated for expenditure on climate action and the just transition. The additional revenue raised by increasing the carbon tax is ring-fenced and used to enable transitional changes, to encourage the greening of agriculture, and to provide targeted social welfare and other measures to prevent energy poverty. For your information, more than €1 billion of carbon tax revenue was allocated as part of Budget 2026 to climate action measures, including sustainable farming and protection of the most energy-insecure in society.
218. Deputy John Paul O'Shea asked the Tánaiste and Minister for Finance if he will consider targeted fiscal measures to accelerate housing supply, including tax incentives for brownfield redevelopment and activation of vacant sites; and if he will make a statement on the matter. [69156/25]
Amharc ar fhreagraAddressing Ireland’s housing shortage requires a substantial increase in the supply of new homes for purchase and rent. To deliver the infrastructure that a growing population and a growing economy need, this Government is determined to use all levers at our disposal to deliver policies that increase supply and alleviate pressure, so that more people can access a home.
Budget 2026 introduced a suite of targeted taxation measures focused on increasing construction viability with a view to boosting housing supply. These include:
• a reduced VAT rate for newly constructed apartments,
• a corporation tax exemption for cost rental income,
• an enhanced corporation tax deduction for apartment construction costs, available in respect of both new-build and change-of-use redevelopments,
• an enhanced and expanded living city incentive,
• extensions to the residential development stamp duty refund scheme and the retrofitting deduction for landlords, and
• the development of a new derelict property tax, to replace the derelict sites levy.
I am acutely aware that there is a need for a continuing focus on measures to address the housing challenges we are facing today. The newly released National Housing Plan “Delivering Homes, Building Communities: An Action Plan on Housing Supply and Targeting Homelessness” targets the delivery of 300,000 new homes by the end of 2030. The Government has provided for the largest ever capital investment in the history of the State - €275 billion in infrastructure over ten years through the National Development Plan. We are also committed to delivering the policies required to significantly accelerate delivery by the private sector through regulatory reform, direct supports and tax incentives.
In addition to Budget 2026 measures, my Department is delivering on a number of actions in the Government’s new housing plan, including €400m additional equity funding from ISIF (Irish Strategic investment Fund) and €200m additional debt funding from HBFI (Home Building Finance Ireland).
I am confident that the measures we have implemented to date, coupled with new measures in the housing Plan, as well as the Government’s wider programme of investment and reform, will allow us to deliver the step-change needed in our housing system, and to see increased delivery of housing across all available land stock, including brownfield redevelopment and activation of vacant sites. For my part, I remain committed to delivering on the commitments in the Programme for Government, including continuing to consider and implement targeted fiscal measures to accelerate housing supply.
219. Deputy John Connolly asked the Tánaiste and Minister for Finance the reason his Department has revised the forecasted Exchequer surplus in 2026 down to €5.1 billion from the predicted surplus of €14.6 billion in budget 2024; if his Department will provide fiscal forecasts for the Exchequer for 2027 and 2028; and if he will make a statement on the matter. [69847/25]
Amharc ar fhreagraFrom the figures the Deputy has quoted, I will assume that he is referring to the General Government Balance, which is a wider measure than the Exchequer balance and incorporates the activity of all arms of Government.
At the time of Budget 2024, a General Government surplus of €14.6 billion was forecast for 2026, based on revenue of just under €141 billion and expenditure of €126.3 billion.
By the time of Budget 2026 earlier this year, the forecast for expenditure had risen to €147.3 billion, an increase of just under €21 billion. This increase in expenditure was partially offset by an upwards revision in forecast revenue to €152.4 billion, an €11.4 billion increase.
In line with Programme for Government commitments, my Department will be publishing a Medium-Term Fiscal Plan tomorrow. This will set out binding expenditure ceilings and fiscal forecasts for the period 2026-2030.
220. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the action he is taking to reduce extremely high interest rates being charged to some mortgage holders whose mortgages were sold to non-bank lenders after the crash; and if he will make a statement on the matter. [73181/25]
Amharc ar fhreagra228. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance his plans to reduce extremely high interest rates being charged to some mortgage holders whose mortgages were sold to non-bank lenders after the crash; and if he will make a statement on the matter. [69734/25]
Amharc ar fhreagraI propose to take Questions Nos. 220 and 228 together.
The Government is aware of the impact that increased mortgage interest rates has had on some borrowers over recent years.
It is important to note that the determination of retail lending rates is a commercial matter for individual lenders. Now that official interest rates have reduced, the Government expects all mortgage creditors to keep their lending rates under review.
Recent Central Bank of Ireland data indicates that mortgage interest rates have declined over the past year. At the end of September, the weighted average interest rate on all outstanding mortgages held by banks was 3.44%, down 16 basis points from 3.60% a year earlier.
For the non-bank sector, the weighted average interest rate on outstanding mortgages was 3.78% down 61 basis points from 4.39% a year earlier.
For those entities in the non-bank sector which do not engage in new lending, the average interest rate on outstanding mortgages at end-September 2025 was 3.91%, down 141 basis points from 5.32% a year earlier.
In relation to new mortgages, as at end October the weighted average interest rate on all new mortgage agreements was 3.56%, down 47 basis points annually.
The Government, the Central Bank and the industry have taken steps to assist all borrowers in response to higher mortgage interest rates.
Budget 2026 maintained the mortgage interest tax credit at the current level for a further year and at a reduced level of relief for the subsequent year.
The Central Bank regulatory framework offers strong protection for consumers and requires that all regulated entities, including banks, retail credit firms and credit servicing firms, are transparent and fair in all their dealings with borrowers. In this regard, the revised and strengthened Consumer Protection Code will come into effect next March.
It should be noted that the Central Bank consumer protection framework provides the same protections for borrowers regardless of the regulated entity with whom they are dealing, be that a bank, retail credit firm or credit servicing firm.
The industry has also adopted an aligned industry-wide set of initial eligibility criteria to facilitate switching mortgages from a non-bank to a bank and it has introduced a bespoke website, entitled 'it's in your interest', to further encourage and assist the mortgage switching process.
221. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance the way in which he is planning to evaluate the effectiveness of the VAT cut on sale of apartments to build more homes; and if he will make a statement on the matter. [69918/25]
Amharc ar fhreagraGiven the centrality of housing to the achievement of Government’s wider societal and economic goals, the Department of Finance closely monitors all aspects of the housing market including building activity, the labour market, costs and prices.
The Deputy may be aware that the Society of Chartered Surveyors Ireland published a report on 9 December titled “The Real Costs of New Apartment Delivery 2025”. Their analysis notes that State interventions are playing a critical role in closing the financial viability gap when it comes to building new apartments.
This report examined six categories of two-bedroom apartments (buy to sell) and found that just two were financially viable before any Government interventions. However, after Government interventions such as the reduction in VAT, together with Croí Cónaithe, it was found that five of the six categories became financially viable.
Department officials will continue to closely monitor developments in the housing market, including in relation to new apartments.
222. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance the engagement he has had with the Irish Fiscal Advisory Council since he took office. [71608/25]
Amharc ar fhreagra229. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance if his attention has been drawn to recent remarks by the Irish Fiscal Advisory Council (details supplied); and if he will make a statement on the matter. [71609/25]
Amharc ar fhreagraI propose to take Questions Nos. 222 and 229 together.
I can confirm that I met the chair of the Irish Fiscal Advisory Council, Seamus Coffey, within my first week of appointment as Minister of Finance last month, to discuss some of the key economic and fiscal issues facing Government.
The Council plays a key role in our budgetary process. Engagement has been ongoing with the Council throughout my time as Minister of Finance, most recently when I appointed Professor Karina Doorley as the latest member to join the board of the Irish Fiscal Advisory Council.
The Fiscal Assessment Report was published on 26th of November by the Council in relation to Budget 2026. This publication is in fulfilment of the Council's legal mandate to assess the Government's budgetary forecasts.
Budget 2026 was framed to protect jobs, maintain our competitiveness and address the infrastructure deficit in an environment of unprecedented uncertainty in the global economy.
My formal response to the Fiscal Assessment Report will address several of the key issues raised by the Council. This response will be published on my Department’s website in due course.
223. Deputy Barry Ward asked the Tánaiste and Minister for Finance his views on the merits of financially incentivising the use of HVO fuel for transport instead of diesel to support achieving our climate emission targets; and if he will make a statement on the matter. [69081/25]
Amharc ar fhreagraAll liquid fuels, including biofuels such as hydrotreated/hydrogenated vegetable oil (HVO), are subject to Value-Added Tax (VAT), and to excise duty in the form of Mineral Oil Tax (MOT).
The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law is obliged 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 Annex III of the Directive, in respect of which Member States may apply a lower rate of VAT.
Motor fuels such as petrol, including bio-ethanol petrol blends, and auto-diesel are not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT, and so they are liable to VAT at the standard rate, currently 23%. Biofuel and non-food vegetable oils, such as HVO, used to fuel vehicles are similarly liable to VAT at the standard rate and Ireland has no discretion in this regard.
Regarding MOT, biofuels which are produced from biomass qualify for relief from the carbon component of MOT under section 100(5) of Finance Act 1999 (as amended). This means that biofuels, such as HVO, bio-ethanol and Fatty Acid Methyl Ester (FAME), are only subject to the non-carbon component of MOT. In the case of blended fuels, the biofuel relief applies to the biofuel portion. I am advised by Revenue that current effective MOT rates on biofuels, along with comparable MOT rates for fossil fuels, such as auto-diesel, 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
As biofuels are relieved of the carbon component of MOT, they are not impacted by annual carbon tax increases. As a result, the MOT rate differential between biofuels and fossil fuels will continue to widen as the 10-year carbon tax trajectory up to 2030 is implemented. I am advised by Revenue that in 2024 the tax forgone under the MOT biofuel relief for fuels used for propulsion is estimated at approximately €69 million. This estimate is based on an analysis of MOT returns data across all fuel types and a breakdown in respect of specific biofuels, such as HVO, is not available.
The tax treatment of HVO in the freight sector, and possible further incentives for its use, was recently examined in the Department’s Tax Strategy Group paper on Energy, Environmental and Vehicle Tax, which is available on my Department’s website at: www.gov.ie/en/department-of-finance/collections/budget-2026-tax-strategy-group-papers/
224. Deputy Cormac Devlin asked the Tánaiste and Minister for Finance the steps being taken to address rising insurance premiums for consumers; and if he will make a statement on the matter. [72877/25]
Amharc ar fhreagraWhile neither I as Tánaiste and Minister for Finance, nor the Central Bank, can intervene directly in pricing under EU Solvency II rules, ensuring that consumers have access to affordable insurance cover is a key priority for this Government.
Considerable progress in this area has already been made. A significant number of reforms were delivered under the 2020 Action Plan for Insurance Reform that have contributed to stabilising the market, including the introduction of the Personal Injuries Guidelines, rebalancing of the duty of care, and legislative enhancements to the Injuries Resolution Board.
Together, these steps have helped reduce claims costs, improve consistency in personal injury awards, and create a more predictable environment for insurers. They have also supported the entry of new providers into the market and encouraged existing companies to broaden their risk appetite.
The 2025 Action Plan for Insurance Reform, launched on 24 July, sets out a comprehensive set of targeted measures to further improve affordability, availability, and transparency across the insurance sector. Among the priority actions is a strong emphasis on enhancing market competitiveness by engaging directly with the international insurance market to attract new providers to Ireland. This approach aims to expand supply, drive greater competition, and reduce cost.
The Office to Promote Competition in the Insurance Market (OPCIM) also continues to play a central role in enhancing competition to address rising premiums. With its mandate expanded under the Programme for Government, the Office remains instrumental in promoting competition and in identifying opportunities to attract additional providers.
Securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key priority, with the goal of enhancing affordability and availability for consumers across all types of insurance.
225. Deputy Séamus McGrath asked the Tánaiste and Minister for Finance to review the qualifying criteria for the help to buy scheme, particularly the property price ceiling. [73040/25]
Amharc ar fhreagraThe 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. The incentive gives 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.
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 November 2025), the scheme has supported over 61,000 individuals or couples to buy or build their own home.
A comprehensive independent review of the scheme was carried out by external consultants in 2022. While this review included a number of recommended amendments to the scheme, it did not recommend an increase to the €500,000 house price limit.
The Programme for Government commits to the retention and revision of the HTB scheme. As the Deputy will appreciate, any revisions to the scheme would have to take into account the effective operation of the scheme and the impact any proposed changes would have on the broader housing market, but these matters will be kept under review.
226. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Finance the steps being taken to address rising insurance premiums for consumers; and if he will make a statement on the matter. [68208/25]
Amharc ar fhreagraWhile neither I as Tánaiste and Minister for Finance, nor the Central Bank, can intervene directly in pricing under EU Solvency II rules, ensuring that consumers have access to affordable insurance cover is a key priority for this Government.
Considerable progress in this area has already been made. A significant number of reforms were delivered under the 2020 Action Plan for Insurance Reform that have contributed to stabilising the market, including the introduction of the Personal Injuries Guidelines, rebalancing of the duty of care, and legislative enhancements to the Injuries Resolution Board.
Together, these steps have helped reduce claims costs, improve consistency in personal injury awards, and create a more predictable environment for insurers. They have also supported the entry of new providers into the market and encouraged existing companies to broaden their risk appetite.
The 2025 Action Plan for Insurance Reform, launched on 24 July, sets out a comprehensive set of targeted measures to further improve affordability, availability, and transparency across the insurance sector. Among the priority actions is a strong emphasis on enhancing market competitiveness by engaging directly with the international insurance market to attract new providers to Ireland. This approach aims to expand supply, drive greater competition, and reduce cost.
The Office to Promote Competition in the Insurance Market (OPCIM) also continues to play a central role in enhancing competition to address rising premiums. With its mandate expanded under the Programme for Government, the Office remains instrumental in promoting competition and in identifying opportunities to attract additional providers.
Securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key priority, with the goal of enhancing affordability and availability for consumers across all types of insurance.
227. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance if he will implement the recommendation of the funds review to develop an entity level tax on Irish real estate investment funds to address the situation where these funds pay no tax on rental income; and if he will make a statement on the matter. [73165/25]
Amharc ar fhreagraThe IREF regime is predominantly a withholding tax regime that applies to an Irish fund where 25 per cent or more of the value of the assets in a fund is derived from Irish property such as land and buildings. Where the profits of the IREF are transferred to a non-resident investor, the IREF is generally required to apply IREF withholding tax (IREF WHT) at a rate of 20 per cent.
There are certain exemptions from IREF WHT for certain non-resident investors, for example, for collective investments where an investor is a domestic or EU/EEA equivalent pension scheme, investment fund or a life assurance company. These exemptions are in line with international taxing norms for such investors and are necessary to prevent double taxation in the hands of the ultimate individual investor.
In order to prevent instances where entities are utilised for personal investment by a single investor, the IREF regime contains detailed anti-avoidance measures to ensure that the exemptions from IREF WHT are not available for investors who can select IREF assets or influence the business of an IREF.
Finance Act 2019 introduced an additional suite of anti-avoidance measures for IREFs, resulting in a charge to income tax at the level of the IREF in certain circumstances. These measures were introduced to prevent the use of excessive debt and other payments to reduce distributable profits that would be subject to IREF WHT.
Based on the latest data available from Revenue, the cumulative net tax collected under the IREF regime since its introduction in Finance Act 2016 is €262 million. The 2019 anti-avoidance measures have added to the overall tax yield for the IREF regime.
Breakdown of total tax collected under IREF regime from 2017 to 2025
|
For Accounting Periods Ending 1st January to 31st December |
Year IREF Tax Paid |
Gross IREF WHT (€m) |
Income Tax Charge (€m)* |
Total IREF WHT Tax & Income Tax Paid (€m) |
IREF WHT Refunds (€m)** |
Net IREF Tax Receipts (€m) |
|
2017 |
2018 |
8.5 |
N/A |
8.5 |
0 |
8.5 |
|
2018 |
2019 |
28.5 |
N/A |
28.5 |
0.2 |
28.3 |
|
2019 |
2020 |
65.7 |
6.4 |
72.1 |
3.2 |
68.9 |
|
2020 |
2021 |
36.8 |
17 |
53.8 |
18.9 |
34.9 |
|
2021 |
2022 |
30.9 |
12.2 |
43.1 |
6.6 |
36.5 |
|
2022 |
2023 |
27.6 |
10 |
37.6 |
0.8 |
36.8 |
|
2023 |
2024 |
20.7 |
11.2 |
31.9 |
2.2 |
29.7 |
|
2024 |
2025 |
26.9 |
N/A*** |
26.9 |
8.2**** |
18.7 |
|
Total |
|
245.6 |
56.8 |
302.4 |
40.1 |
262.3 |
*Specific anti-avoidance measures introduced in Finance Act 2019 may give rise to an income tax charge at the level of the IREF.
**Please note the majority of the repayment claims relate to more than one period.
*** Data on the Form 1 IREF returns for 2024 Income Tax is not yet available.
****The IREF WHT refunds figure is for repayments processed in the year to date.
Please note data for previous years has been revised as required to reflect amended IREF returns received on foot of Revenue compliance reviews and updates arising from verification of the data.
Since the publication of the Funds Review report in October 2024, there has been increased recognition of the need for urgent action to be taken to address Ireland’s housing supply shortage, the role that institutional investment plays, and the risk presented by any instability or uncertainty in the institutional investment landscape.
During Budget 2026, the former Minister for Finance announced that the Funds Review recommendation for consideration to be given to an entity-level tax for Irish Real Estate Funds (IREFs) will not be progressed. As complexity in the IREF regime continues to present a barrier to investment, the former Minister for Finance announced that a public consultation on proposals to simplify the IREF regime, without limiting its effectiveness, will be held in 2026.
230. Deputy Peter 'Chap' Cleere asked the Tánaiste and Minister for Finance the details of engagements he has had since taking office in relation to the EU Savings and Investment Union; and if he will make a statement on the matter. [72573/25]
Amharc ar fhreagraIn March 2025, the European Commission launched the SIU Strategy, which includes measures to advance the Capital Markets Union (CMU) project. The Savings and Investment Union (SIU) is the new term for the combination of the Capital Markets Union (CMU) and Banking Union. It is a key priority for this Commission’s legislative term.
From the outset, Ireland has been a strong supporter of the SIU at both Government level and also by key actors in our financial services sector. As such we will continue to actively be involved in progressing its associated measures.
In our view, we can deliver for all EU citizens most effectively through a model that is open to global capital and expertise, can exploit the benefits of existing marketplaces and infrastructures and build on the various centres of financial services excellence that already exist within the EU. As with the wider single market, competition, both from within the EU and outside our borders, will be what drives innovation and efficiency gains.
Ireland’s view is that we must take a pragmatic approach and that, in order to best advance the SIU and to truly deepen EU capital markets, we need to focus on areas where broad agreement can be reached and in a timely manner. To maintain momentum, we must work diligently and in close coordination with other Member States, the European Parliament and other stakeholders particularly to advance legislative files where progress is readily achievable.
In terms of engagements on the SIU since taking office, I have had the opportunity to attend the last ECOFIN meeting, which is a meeting of Finance Ministers from across the EU, where the recently released Market Infrastructure Package (MIP) was discussed. The MIP is a legislative package that falls under the umbrella of the SIU. At the recent Ecofin meeting I took the opportunity to have a range of meetings with other Ministerial colleagues, relevant EU Commissioners and other key EU institutional stakeholders. This file will remain a priority for my officials and I will continue to seek to find ways to advance matters in this regard.
231. Deputy James Geoghegan asked the Tánaiste and Minister for Finance further to Parliamentary Question No. 270 of 27 November 2025, if his Department modelled the way in which the more active use of the €163 billion of savings currently held in low-yield accounts by Irish households (according to Central Bank figures) might offset the direct cost of removing the deemed disposal rule; if not, whether his Department can provide estimates, based on models of international best practice, of the potential economic and fiscal upsides that higher returns from investing these savings might have; and if he will make a statement on the matter. [69536/25]
Amharc ar fhreagraThe Deputy has asked for further information in relation to the estimated cost of removing deemed disposal.
As was set out in the response to Parliamentary Question 270 of 27 November 2025, the cost of deemed disposal not applying in a given year had an estimated cost of €142 million based on data for the previous eight years. It is important to note that the information available to Revenue does not allow them to isolate the tax returned due to deemed disposal rules from other events which give rise to a tax liability. The response also noted that the actual cost could vary where the proportion of tax which is deemed disposal is higher or lower, as well as where the gains in a particular year are larger or smaller than the eight-year average used for this estimate.
This estimated cost of removing deemed disposal in a given year was calculated using a revenue foregone model, considering the reduction in the current tax yield for taxation of investments and life assurance policies. This is one of the approaches to costing identified as appropriate in the Department of Finance Guidelines on the Cost of Tax Expenditures.
As the Deputy notes, there is a significant sum currently invested in deposit accounts. There is certainly potential for savings in deposit accounts to move to more active investments. However, any gains arising from a move from savings to investments are likely to take place over the longer term, and would be unlike to impact immediately, in contrast with the immediate impact of a reduction in taxation paid where deemed disposal did not apply.
As part of their work on savings and investment accounts the European Commission considered the potential impact of introducing savings and investment accounts, improving financial literacy among the population, and fostering a broader ‘equity culture’ to increase the retail participation of EU households in EU capital markets. They also considered the potential fiscal impacts of SIAs on Member States at the EU level, while noting that there are a lot of variables that could affect the analysis for different Member States. The analysis suggests that these changes would have a positive impact. The staff working document published with the Commission's Recommendation on Savings and Investment Accounts sets out the analysis undertaken and is available at: eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52025SC6800
While the impact of such changes was not included in the calculation of the estimated cost associated with the removal of deemed disposal of €142 million, they are being considered in the context of the work underway on the roadmap for the taxation of retail investments, which I intend to publish in early 2026.
232. Deputy Colm Burke asked the Tánaiste and Minister for Finance if consideration will be given to reviewing and removing the deemed disposal rule for investors as this can be punitive on investors and investment; the reason it has not been removed to date as the final report of the funds review, ‘Funds Sector 2030: A Framework for Open, Resilient and Developing Markets’ was published in October 2024 and included recommendations to support and encourage retail investment, including the removal of deemed disposal; and if he will make a statement on the matter. [70854/25]
Amharc ar fhreagra246. Deputy Joe Neville asked the Tánaiste and Minister for Finance the steps his Department is taking to reduce the current requirement that ordinary Irish EFT investors have to pay 38% exit tax on unrealised gains every eight years even if they have not sold; and if he will make a statement on the matter. [73274/25]
Amharc ar fhreagra253. Deputy Catherine Callaghan asked the Tánaiste and Minister for Finance the progress that is being made on removing the deemed disposal rule; and if he will make a statement on the matter. [69980/25]
Amharc ar fhreagraI propose to take Questions Nos. 232, 246 and 253 together.
The Deputies have asked about deemed disposal. Deemed disposal is an anti-avoidance measure that applies to investments in Irish domiciled investment funds and life assurance products, as well as equivalent offshore funds and certain foreign life assurance products. Under deemed disposal, tax is levied eight years after an investment is made, and every subsequent eight years, regardless of whether or not a disposal has in fact occurred. 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 is allowed as a credit against the final tax liability. The purpose of deemed disposal is to prevent the indefinite roll-up of income and gains and the associated loss of tax to the Exchequer.
I am committed to taking the necessary action to support retail investment in Ireland. The reduction from 41% to 38% in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products, that was announced in Budget 2026, is an important first step in this regard.
I am aware of the position of a number of stakeholders in relation to the taxation of retail investment and the application of deemed disposal in particular. It is important to ensure that any changes in this area achieve an appropriate balance between the supporting retail investment and maintaining appropriate anti-avoidance protections.
I am conscious of the need to ensure that retail investment is encouraged. Work is continuing on the development of the roadmap for the taxation of retail investment, as announced in Budget 2026. The roadmap is to be published early next year and will set 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. This roadmap will facilitate due consideration of the Funds Sector 2030 Report and take into account the European Commission’s recommendation on Savings and Investment Accounts. I hope further progress can be made to address some of the existing obstacles to greater retail investment.
233. Deputy Donnchadh Ó Laoghaire asked the Tánaiste and Minister for Finance if he will report on the NTMA’s investments in a company (details supplied); and if he will make a statement on the matter. [68543/25]
Amharc ar fhreagraThe National Treasury Management Agency (NTMA) has informed me that the Ireland Strategic Investment Fund (ISIF) publishes details of individual investments in their Annual Report.
Under the National Treasury Management Agency (Amendment) Act 2014, the Agency has responsibility for determining, monitoring and keeping under review an investment strategy for the Fund (other than directed investments) in accordance with the investment policy for the Fund.
Following the development of its draft investment strategy and after consultation with Ministers, the NTMA adopted a Sustainability & Responsible Investment Strategy (S&RIS) in 2020 which was updated in 2023 and reflects a commitment to be a responsible investor as steward of public assets by protecting and enhancing both the long-term value of the ISIF.
In this context ISIF operates an exclusion policy which is consistent with its statutory mandate, as amended from time to time. Exclusion is used on a limited basis, reflecting exclusions mandated by legislation (such as the Fossil Fuel Divestment Act 2018 or the Cluster Munitions and Anti-Personnel Mines Act 2008) and, inter alia, exclusions on a non-statutory basis on sustainable investment grounds including Tobacco and Nuclear Weapons.
The most recent annual report is for the year ended December 2024 and ISIF’s holdings in Palantir Technologies at year end were valued at €950,000.
ISIF does not comment on individual investment decisions given commercial sensitivities.
234. Deputy Edward Timmins asked the Tánaiste and Minister for Finance the number of applications made to the credit review office; the number that resulted in the credit review office recommending lending; the outcome from the banks in the past three years; and if he will make a statement on the matter. [69896/25]
Amharc ar fhreagraCredit Review was set up in 2010 to encourage and increase the supply of credit to viable SMEs, sole traders and farmers and help ensure the bank credit system is operating effectively for them. The Credit review is an effective and affordable review service for businesses who have credit facilities refused, reduced, or withdrawn and where the loan amount was between €1,000 and €3m. Current participating banks include AIB, Bank of Ireland, and PTSB.
The Credit Reviewer has issued regular reports which contain details on the number of applications for review (appeal by borrowers against a bank’s credit decision). The reports can be found at: www.creditreview.ie
Borrowers are supported where the reviewer deems the business to be viable (able to meet debt repayments) or potentially viable. Where credit cannot be recommended at that point in time, a roadmap is provided for the borrowers to assist them in the steps required to become bankable in future.
Of cases completed since inception, 59 per cent were supported by Credit Review and the banks agreed to provide credit of €85.9m (or 78 per cent of the supported cases).
Details of the number of reviews (appeals) for the last three years:
APPLICATION NUMBERS
|
Year |
2022 |
2023 |
2024 |
|
Total Applications |
71 |
57 |
59 |
|
Eligible Cases |
55 |
51 |
50 |
|
Abandoned |
23 |
6 |
10 |
|
Withdrawn and Got Credit |
3 |
4 |
3 |
APPEAL OUTCOMES
|
Year |
2022 |
2023 |
2024 |
|
Total Appeals Completed |
45 |
47 |
46 |
|
Bank Upheld |
10 |
14 |
27 |
|
Borrower Supported |
35 |
33 |
19 |
|
SME Got Credit |
19 |
21 |
7 |
When the borrower is supported by Credit Review, the bank is asked to provide credit or explain why it will not (‘comply or explain’); Credit Review cannot compel banks to lend.
Where the Credit Review upholds a bank’s decision not to lend, it provides the borrower with a set of recommendations to address the weaknesses in the proposal.
235. Deputy James Geoghegan asked the Tánaiste and Minister for Finance if he will provide an update on the progression of the Central Bank (Amendment) Bill 2025 to ensure fair access to insurance services for cancer survivors; and if he will make a statement on the matter. [69537/25]
Amharc ar fhreagraI am firmly committed to advancing this important piece of legislation which is a key commitment in the Programme for Government, and an important measure to ensure fair access to mortgage protection insurance for survivors of cancer. The decision by Government to legislate follows engagement with key stakeholders and reflects the Government’s determination to put these protections on a statutory footing and to provide legal certainty and ensure uniformity across all market participants.
My officials are currently working with the Office of the Parliamentary Council on the draft amendments to ensure the proper functioning of the disregard system once it is placed on a legislative footing. The drafting process is being undertaken with careful consideration of the implications for prudential regulation, the classification of insurance risks, establishing a process that is legally functional, and proper interaction with other financial legislation. This care is being taken to ensure that the objectives of the Bill are achieved without any unintended impacts, and that the ability to obtain mortgage protection insurance moves smoothly from a voluntary code to a legislative framework.
It is my expectation that the Bill will move to Committee Stage early in the new year, where the revised and finalised text may be considered and debated in full. Advancing the Bill represents an important step in ensuring fairer and more compassionate access to mortgage protection insurance for cancer survivors. I look forward to the engagement with colleagues across the Oireachtas on this important piece of legislation so as to ensure its timely passage into law during the early part of 2026.
236. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the total homes and total value of homes that have been bulk purchased, and subject to the higher rate of stamp duty, since the higher rate was introduced and since the start of 2025; and if he will make a statement on the matter. [73166/25]
Amharc ar fhreagraI am advised by Revenue that the number and value of properties subject to the higher rate of stamp duty is provided in the table below. Stamp duty is due on the VAT exclusive consideration on new properties. The total value includes VAT on new properties to reflect the total price paid. The higher rate is currently set at 15% of the consideration. This rate came into effect on 2 October 2024. Prior to this, it was 10%. The latest figures are based on data to the end of September 2025 and earlier years may have changed due to additional filings / amendments, etc.
|
Year |
Number of properties |
Total Value of Properties purchased €m |
|
2021 |
189 |
47.9 |
|
2022 |
454 |
177.5 |
|
2023 |
667 |
264.8 |
|
2024 |
392 |
155.4 |
|
2025 |
137 |
30.5 |
|
Total |
1,839 |
676.1 |
