Written Answers Nos. 280-304
280. Deputy Tony McCormack asked the Tánaiste and Minister for Finance the progress made to date in implementing the taxation measures introduced in Budget 2026 to enhance the competitiveness and sustainability of small and medium-sized enterprises; the details of any further targeted supports under consideration in advance of Budget 2027; and if he will make a statement on the matter. [25714/26]
Amharc ar fhreagraThis Government recognises the important role small and medium enterprises (SMEs) play in the Irish economy and this is reflected in Budget 2026 which contained tax relief measures amounting to over €1 billion in supports to businesses and entrepreneurs including SMEs. These measures take effect in the Finance Act 2025. The measures which are of benefit to SMEs are broad based and not just SME specific but are available and applicable to the SME sector.
Budget 2026 included:
• A reduction in the VAT rate on food and catering businesses and for hairdressing services from 13.5 percent to 9 percent. 99% of businesses operating in these sectors are SMEs. This measure will take effect from 1 July 2026.
• An increase in the rate of the R&D corporation tax credit to 35 percent and in the first-year payment threshold amount from €75,000 to €87,500. This change in threshold will be of particular benefit to companies carrying on smaller R&D projects.
• An increase in the Revised Entrepreneur Relief lifetime limit from €1 million to €1.5 million for disposals made from the 1st of January 2026, supporting entrepreneurs including those in the SME sector.
• A new exemption from the 1% Stamp Duty on acquisitions of shares in Irish registered companies, available for companies with a market capitalisation with a threshold of €1 billion. This measure took effect on 1 January 2026.
This Government is committed to enhancing the competitiveness and sustainability of Irish SMEs. For example, the Action Plan on Competitiveness and Productivity was published in September 2025 and work is underway on progressing the 85 recommendations including fiscal supports for enterprise.
Key tax incentives that encourage investment in SMEs include the Employment Investment Incentive (EII) and the Angel Investor Relief. The EII and Angel Investor relief are schemes that operate under the EU State aid General Block Exemption Regulation (GBER). The EU Commission is currently undertaking a revision of the GBER. A draft of the revised GBER was published at the end of February and is subject currently to a public consultation. The final draft to be adopted is expected by Q4 2026. Officials are examining the current draft and the potential impacts on the incentives.
It is important to note that, any decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.
Such decisions also must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines. The guidelines make clear that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures, where a tax-based incentive is more appropriate and efficient than a direct expenditure intervention.
283. Deputy Willie O'Dea asked the Tánaiste and Minister for Finance the action being taken to address rising motor insurance premiums; and if he will make a statement on the matter. [26616/26]
Amharc ar fhreagra313. Deputy Mark Ward asked the Tánaiste and Minister for Finance the steps his Department is taking to tackle the cost of car insurance; and if he will make a statement on the matter. [26738/26]
Amharc ar fhreagraI propose to take Questions Nos. 283 and 313 together.
Firstly, it is important to highlight that the decision to provide any particular form of insurance cover, and the price at which it is offered, is a commercial matter for insurance companies based on an assessment of the risks they are willing to accept. Neither the Tánaiste and Minister for Finance, nor the Central Bank of Ireland, has the authority to require insurers to provide specific types of cover or to do so at a specified price. This is reinforced by the European framework for insurance (Solvency II Directive).
A key focus of the insurance reform agenda has been reducing personal injury costs, which historically accounted for around 70 per cent of overall motor insurance claims costs. Since the introduction of the Personal Injuries Guidelines and related measures, that figure has now moved closer to a 50/50 split between settled injury cost (46%) and settled damage costs (54%) in 2024. This significant shift has helped shield Ireland from the full impact of global inflationary pressures in the motor insurance sector. These inflationary pressures, which have emerged in recent years, are driven primarily by external factors, including more technologically advanced vehicles, international supply chain disruptions, and increasing labour costs in the repair sector - all of which have contributed to higher repair costs and placed upward pressure on premiums.
Insurance Ireland, the representative body for the insurance industry, has advised that premium calculations are informed by a number of rating factors, which may include where a vehicle is stored, the age of the driver, and their driving experience. Insurers continuously review and analyse relevant data and set their prices based on their own claims experience, with individual companies assigning different weightings to each factor.
Nevertheless, the Government remains firmly committed to delivering measures to reduce insurance costs affecting motorists. This commitment is being progressed through the Action Plan for Insurance Reform 2025–2029. The Action Plan sets out a number of priority actions, focused on areas where the greatest impact on transparency, affordability and availability of insurance can be achieved. As part of this, a new Motor Insurance Transparency Code was launched on 2 March 2026. The Code is designed to enhance trust, clarity, transparency, and understanding in how motor insurance premiums are communicated to consumers.
The Government is firmly committed to addressing insurance costs through the implementation of the reforms set out in the Programme for Government and the Action Plan for Insurance Reform. These measures are intended to support the development of a fairer, more sustainable, and more competitive insurance market, delivering tangible improvements in cost, choice, and access for all consumers.
284. Deputy John Clendennen asked the Tánaiste and Minister for Finance the way in which the outlook for the economy currently compares with the challenges posed during the Covid-19 pandemic; and if he will make a statement on the matter. [26885/26]
Amharc ar fhreagraThere are a number of very significant differences in the nature of the two shocks.
For instance, the key economic transmission channel from the conflict in the Middle East is through higher energy prices whereas during COVID oil prices recorded significant declines.
Notwithstanding this, under both shocks the economic outlook was clouded in considerable uncertainty.
The appropriate response in such circumstances is to engage in scenario analysis, stress testing our core beliefs on how the economy might evolve over the coming period.
In light of this uncertainty, my Department continues to monitor developments closely and will publish its spring economic forecasts in the Annual Progress Report (APR) later this month. This will include a central scenario as well as adverse alternative scenarios where there is a more pronounced and persistent disruption to energy supplies.
285. Deputy Malcolm Byrne asked the Tánaiste and Minister for Finance to outline any tax incentives that will encourage the charitable donation of land for sporting, cultural or community purposes; and if he will make a statement on the matter. [26494/26]
Amharc ar fhreagraA gift of land by an individual to a sporting, artistic, cultural or community organisation for the development of facilities may give rise to Capital Gains Tax, Stamp Duty and Capital Acquisitions Tax considerations for the parties involved – details of such considerations, and in particular tax reliefs which may be available in such circumstances, are set out below.
Capital Gains Tax
Capital Gains Tax (CGT) is chargeable on a gain arising on the disposal of an asset, including land, at the rate of 33 percent.
I am advised by Revenue that a donation of land may be exempt from CGT in certain circumstances. Section 611 of the Taxes Consolidation Act 1997 provides that no charge to CGT arises on a gift, or a sale at a price not exceeding the cost, of assets including land to the State, charities or other certain specified bodies, which includes certain artistic, cultural and community organisations, universities and local authorities, but does not extend to sporting bodies.
Stamp Duty
Stamp Duty on a gift of non-residential property such as land is chargeable at the rate of 7.5 percent of the market value of the land.
Section 82 of the Stamp Duties Consolidation Act (SDCA) 1999 provides an exemption from Stamp Duty on transfers of land for charitable purposes in the State or Northern Ireland to a body of persons established for charitable purposes only or to the trustees of a trust so established.
Section 82B SDCA 1999 provides for an exemption from Stamp Duty on a transfer of land to an “approved sports body” as defined in section 235 of the Taxes Consolidation Act 1997, where the land acquired will be used for the sole purpose of promoting athletic or amateur games or sports.
Capital Acquisitions Tax
A charge to Capital Acquisitions Tax (CAT) may arise on a gift of land, which would be payable by the person (or persons) to whom the land is transferred.
I am advised by Revenue that a charitable donation of land may be exempt from CAT in certain circumstances. Section 76(2) of the Capital Acquisitions Tax Consolidation Act 2003 provides that a gift or inheritance which is taken for public or charitable purposes is exempt from CAT if Revenue is satisfied that it has been, or will be, applied to purposes which in accordance with the laws of the State are public or charitable.
The availability of the above CGT, Stamp Duty and CAT reliefs will depend on the specific facts and circumstances of each case.
Finally, as the Deputy will appreciate, in designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible consistent with the overall policy intention behind any measure and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources.
286. Deputy Joe Neville asked the Tánaiste and Minister for Finance when he plans to roll out the new derelict property tax; the involvement there will be from local authorities in relation to authorisation; and if he will make a statement on the matter. [26147/26]
Amharc ar fhreagraIn Budget 2026, it was announced that a new Derelict Property Tax (DPT) would be introduced. The aim of this tax is to encourage the activation of derelict properties and sites. It will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners.
In order for the new tax to be successful on introduction, care must be taken in its design. A key issue is that the tax must apply in a consistent manner to all residential properties and sites that are derelict. Local authorities will need to identify all the relevant derelict properties in their area and a lead-in time will be required for them to carry out this identification.
I intend to legislate for DPT as part of Finance Bill 2026. This is dependent on engagement from stakeholders and will also be influenced by any advice I receive from the Attorney General. Once this tax is legislated for, local authorities will then prepare and publish a preliminary register of derelict properties in 2027, with the tax coming into effect as quickly as possible thereafter.
Once the Derelict Property Tax is operational, I am confident this will incentivise owners of derelict properties to take action to bring these homes back into use and ultimately contribute to our housing stock.
287. Deputy William Aird asked the Tánaiste and Minister for Finance if he has assessed the potential knock-on effects of increased agricultural fuel costs on food price inflation, and the extent to which carbon taxation on agri fuels is contributing to increased costs for consumers; and if he will make a statement on the matter. [26863/26]
Amharc ar fhreagraFuels are, of course, an important input into the production, transportation and distribution of food, and any increase in fuel prices will potentially have some adverse impact on food prices. The actual impact will depend on the scale and duration of the energy price shock - the situation in the Middle East and the future path of commodity prices clearly remains highly uncertain.
My Department's spring economic forecasts as set out in the Annual Progress Report (APR) include a reference forecast for headline inflation where headline inflation averages 3.3 per cent while food inflation averages 2.7 per cent.
As well as the reference projection, adverse two alternative scenarios where there is a more pronounced and persistent disruption to energy supplies are detailed in the APR.
While energy is an input to food production, carbon tax increases on fuels used in agriculture are expected to have a very limited impact on overall inflation. Notwithstanding this, Government has agreed to delay the increase in carbon tax to later in the year.
In relation to agriculture specifically, farmers are eligible for a double income tax relief which compensates increases in the carbon tax from the 2012 base rate of €15 per tonne of CO2 emission. A farmer may take an income tax or corporation tax deduction for farm diesel (including any carbon tax charged in respect of the diesel) and then a further deduction for farm diesel which is equal to the difference between the carbon tax charged and the carbon tax that would have been charged had it been calculated at the rate of €41.30 per 1,000 litres of farm diesel (the 2012 baseline).
Agricultural contractors are not currently entitled to this relief as they are not carrying on a trade of farming as per the definition in section 654 of the Taxes Consolidation Act 1997 which requires the occupation of farmland and agricultural contracting does not involve the occupation of farmland. However, agricultural contractors who incur expenses in relation to farm diesel in the course of their trade of agricultural contracting may claim an income tax or corporation tax deduction for those expenses, including any carbon tax charged in respect of the diesel.
As the Deputy will be aware, Government announced a second package of measures on 12 April to address the current energy price inflation. This includes a further reduction on excise applying to MGO, bringing the overall reduction on MGO (inclusive of the NORA levy reduction ) to 7.4 cent per litre.
Furthermore, the Minister for Agriculture, Food and the Marine has announced comprehensive €100 million Fuel Subsidy Support Scheme to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs. The payments will cover the months of March up to the end of July which coincides with peak fuel usage on farms.
The scheme will provide €20 million per month in supports, with funding directly linked to fuel usage last year to ensure those most impacted by the fuel price increase receive the greatest assistance.
Farmers and agricultural contractors will benefit from a support rate equivalent to approximately 20 cents per litre of MGO (marked gas oil) used based on verified fuel consumption in 2025. The funding will be distributed proportionally, a point that was strongly emphasised in ongoing engagements with the representative farm and farm contractor groups.
Government has also established Farm Contracting Working Group Contractor Working Group, in line with a commitment in the Programme for Government.
This targeted and practical support package ensures that those most exposed to these increases will receive meaningful assistance at the most critical time of year.
288. Deputy Sean Fleming asked the Tánaiste and Minister for Finance for an update on the number of insurance companies who have signed up to the voluntary motor insurance transparency code; and if he will make a statement on the matter. [26614/26]
Amharc ar fhreagraThe Motor Insurance Transparency Code was developed by a working group comprising insurers and intermediaries, with the support of the Department of Finance and the Central Bank of Ireland, to ensure strong alignment with regulatory requirements without mandating the disclosure of commercially sensitive information. The Code is designed to enhance trust, clarity, transparency, and understanding in how motor insurance premiums are communicated to consumers.
The Code is open to adoption by all insurers and intermediaries selling private motor insurance in the State, including cross-border entities. Aviva and Insurance Ireland were members of the working group that developed the Code and account for approximately 97.5% of the private motor market in gross written premium terms, with the remaining 2.5% comprised of smaller Managing General Agents (MGAs). Both Aviva and members of Insurance Ireland have highlighted their commitment to the Code and its adoption.
Implementation of the Code is currently progressing on a phased basis, supported by staff training, updated documentation, and strengthened governance. The Central Bank will provide a report to the Minister for Finance within 18 months on their observations on firms’ adherence to the Code, and the effect the Code is having in achieving its objectives, most notably, providing greater transparency for consumers with respect to private motor insurance premiums.
The Department of Finance and the Central Bank of Ireland will continue to engage closely with industry stakeholders via the established working group, with a view to actively monitoring the ongoing implementation of the Code, overseeing adherence to its requirements, and tracking the level of participation and uptake among insurance companies.
289. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the action he is taking on foot of his Department’s advice to introduce new regulations that would ensure social media companies vet who can post adverts promoting financial investment schemes on their platforms; and if he will make a statement on the matter. [26781/26]
Amharc ar fhreagraMy officials have been undertaking a number of actions aimed at reducing the incidence rate of payment fraud, this includes actions aimed towards preventing the use of social media platforms for the advertisement of illegal and fake financial services.
The Payment Services Regulation has recently reached political agreement in the EU and includes several fraud prevention measures such as spending limits, expanded transaction monitoring, fraud information sharing arrangements, anti-fraud education and awareness initiatives, and cross-sector cooperation and data sharing between PSPs, communication service providers, and hosting services for the purpose of detecting and preventing fraud.
Crucially, the agreement also includes a requirement for search engines and social media platforms to verify that persons advertising financial services on their platforms have the necessary regulatory authorisation to provide those financial services. This measure is based on a proposal brought forward by Ireland during legislative negotiations.
In addition to fraud prevention measures the Payment Services Regulation will expand Bank liability from only cases of unauthorised payment fraud, to also include cases of impersonation fraud where the victim is manipulated into authenticating a payment by a person impersonating their Bank.
The Central Bank of Ireland has informed me that they are already engaging on a bilateral basis with certain technology companies, looking for them to introduce financial services advertisements verification on a voluntary basis, in this jurisdiction. Google introduced advertisement verification in November 2024 which has provided some positive results in relation to the reduction in the volume of fraudulent advertisements on Google platforms.
This mechanism, if operating effectively, should protect consumers from the harm posed by scam advertisements as it prevents consumers being exposed to those advertisements in the first place. The Central Bank also seeks to disrupt frauds and scams by reporting suspect content to internet service providers, including under the Trusted Flagger regime provided for in the Digital Services Act.
In addition to action taken at the EU level, domestically the National Payments Strategy makes several recommendations related to payment fraud. One key outcome has been the establishment of the BPFI anti-fraud forum. The anti-fraud forum fosters cross-sectoral cooperation in fraud prevention between key players such as banks, social media platforms, telecommunications, and regulatory authorities.
290. Deputy Erin McGreehan asked the Tánaiste and Minister for Finance for an update on the Drogheda and Dundalk living city initiatives; and if he will make a statement on the matter. [26728/26]
Amharc ar fhreagraThe Living City Initiative is a targeted measure which is aimed at specific areas in need of regeneration. It 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 Cork, Dublin, Galway, Kilkenny, Limerick and Waterford.
Budget 2026 announced a number of enhancements to the Living City Initiative to strengthen the scheme, with the changes provided for in Finance Act 2025. It was also announced that the scheme would be extended to the five regional centres as set out in the National Planning Framework, namely, Athlone, Drogheda, Dundalk, Letterkenny and Sligo.
For the scheme to start to apply in the five new towns, including Dundalk and Drogheda, Special Regeneration Areas in each town must first be identified and designated.
My Department has received draft Special Regeneration Areas maps for each of the five towns from the relevant Local Authorities. An independent review of the draft maps was undertaken to ensure the maps' consistency with the criteria for Special Regeneration Areas.
The review has concluded and I am pleased to inform the Deputy that the Special Regeneration Areas for each of the five towns were recently designated.
291. Deputy Aisling Dempsey asked the Tánaiste and Minister for Finance the way in which the new personal investment account will work in practice; the tax measures that will be implemented to supports its adoption; and if he will make a statement on the matter. [26606/26]
Amharc ar fhreagraOne of the aims of the Savings and Investments Union is to create better financial opportunities across the EU, providing people with more opportunities to invest and provide for their current and future prosperity. In September 2025, the European Commission adopted a Recommendation on increasing the availability of Savings and Investment Accounts (SIAs) in Member States and this included an outline of their key characteristics.
Ireland still does not have a sufficiently diversified savings and investment culture. Too much of people’s hard-earned savings remains in low-yield deposits, where inflation can erode value over time. Deposit accounts are right for many people and for many needs. But they should not be the only practical option. Investment in capital markets can offer households another path to long-term financial wellbeing, while also supporting growth and competitiveness in the wider economy.
At the recent Savings and Investment Forum, I announced the Government’s intention to introduce the legislative framework for an Investment Account in 2026. We want to make investing simpler, clearer, and more accessible for ordinary people, and help their hard-earned money work harder for them over time.
The aim is to legislate for the framework in 2026 and to allow accounts to be offered from 2027. The account will be designed as a simple, one-stop option for individuals. It will also be a key part of a broader rethink of the taxation of retail investment. The Government’s view that the account should be simple, accessible, tax efficient, easy to administer, transparent on fees and portable across borders where possible.
In terms of designing the model that best fits the Irish economy and the needs of Irish households, the views of relevant experts are being considered as well as learning from best international practices.
The tax treatment of retail investments was considered as part of a broader review into the funds and asset management sector in Ireland, which culminated in the ‘Funds Sector 2030’ report that was published in October 2024.
In recognition of the importance of encouraging retail investment, Budget 2026 provided for a reduction in the rate of taxation on returns from Irish and equivalent investment funds and Irish and certain foreign life assurance policies from 41% to 38% which took effect from 1 January 2026.
In addition, Budget 2026 also included a commitment to publish a roadmap in 2026, setting out the intended approach to simplify and adapt the tax framework to encourage retail investment in future Finance Bills. The roadmap, which will be published in the coming months, will take into consideration developments at EU level in respect of the Savings and Investments Union, including the Recommendation on SIAs and continue to draw upon best practice in other countries who operate successful savings accounts.
293. Deputy Ryan O'Meara asked the Tánaiste and Minister for Finance for an update on the commitment in the Action Plan on Insurance Reform to develop a long-term approach to flood insurance; and if he will make a statement on the matter. [26618/26]
Amharc ar fhreagraAt the outset, I wish to acknowledge the damage caused by flooding events on communities and businesses across Ireland.
The Government is committed to protecting Ireland’s present and future generations by investing in climate adaptation measures to manage the impacts of extreme weather. Accordingly, €1.3 billion has been committed to the delivery of flood relief schemes over the lifetime of the National Development Plan to 2030. This will protect approximately 23,000 properties across various communities from river and coastal flood risk.
The Action Plan for Insurance Reform 2025-2029 includes 4 specific actions on flood and climate protection. With respect to Action 17 of the Action Plan on developing a long-term strategic approach to flood insurance, the Department of Finance is currently engaging with multiple stakeholders on the development of a long-term strategic approach to the provision of flood insurance, to consider potential solutions, specific to Ireland, to increase the availability and affordability of flood insurance. This work will build on the extensive research undertaken by the Central Bank of Ireland into the nature and scale of the Flood Protection Gap in Ireland, which identified that approximately 5% of buildings in Ireland have limited access to flood insurance.
My officials will also continue to monitor developments at EU and international level and assess flood insurance matters, including through participation in the OPW and Insurance Ireland Working Group. These matters remain a priority for this Government and efforts continue to be made to encourage a responsive approach from the insurance industry.
294. Deputy Erin McGreehan asked the Tánaiste and Minister for Finance for a report on derelict property tax registrations; and if he will make a statement on the matter. [26729/26]
Amharc ar fhreagraIn Budget 2026, it was announced that a new Derelict Property Tax (DPT) would be introduced. The aim of this tax is to encourage the activation of derelict properties and sites. It will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners.
I intend to legislate for the DPT as part of Finance Bill 2026. This is dependent on engagement from stakeholders and will also be influenced by advice received from the Attorney General. This timeline is necessary to allow local authorities to prepare and publish a preliminary register of derelict properties in 2027, with the tax coming into effect as quickly as possible thereafter.
In order for the DPT to be successful on introduction, care must be taken in its design. A key issue is that the tax must apply in a consistent manner to all residential properties and sites that are derelict. Therefore, a lead-in time will be required for local authorities to identify all the relevant derelict properties in their area for inclusion on a register in a consistent manner.
As the tax is yet to come into effect, it is not possible to provide the Deputy with detail on derelict property tax registrations. Once the tax is in operation, statistics will be published in respect of this tax, as is the case for other property taxes.
The Deputy may be interested in the number of derelict sites registered by local authorities under the Derelict Sites Act 1990. As of 31 December 2024, there were over 2,100 registered derelict sites, according to data published by the Department of Housing, Local Government and Heritage in December last year: www.gov.ie/en/department-of-housing-local-government-and-heritage/publications/annual-returns-for-2024-received-from-local-authorities-under-the-derelict-sites-act-1990/
296. Deputy Paul Murphy asked the Tánaiste and Minister for Finance whether he will reduce tax on fuel in order to facilitate the capping of prices at affordable levels. [26785/26]
Amharc ar fhreagraIt is important to underline that the spikes in the price of fuels are not as a result of taxes. The price of fuel is determined by a number of factors including the wholesale market price, international market dynamics, international exchange rates impacts, distributional costs, retail pricing policy and taxation.
What we are currently seeing is a massive increase in the wholesale market price of oil, which is driving this increase in fuel costs.
As the Deputy will be aware in Ireland there is a free market economy as is the case in most countries globally. As such prices are determined based on supply and demand. In a market economy price controls are rarely, if ever, used; instead prices are set by individual businesses.
Reducing tax to facilitate price capping is not a viable option ; as the Deputy will be aware there is limited scope to reduce taxes and as such there is no guarantee that tax reductions can achieve price capping. It is important to note that revenue raised from taxes is used to fund essential services such as health, education and policing.
The Deputy may also be aware of the recently published CCPC Fuel Report (March 2026) which outlined 'that setting prices in complex international markets where prices fluctuate every day is extremely challenging and is likely to cause further harm to businesses and consumers by significantly disrupting supply and distorting the market. For example, the 2021 price caps on diesel and petrol in Hungary resulted in rationing and queues before they were removed to restore supply.'
Government is acutely aware of the severity of the impact of this fuel crisis on households and businesses across the country and has engaged extensively with stakeholder bodies over the last number of weeks to ensure all perspectives are viewed and addressed to the best extent possible.
As the Deputy will be aware, we have put forward a comprehensive and far reaching package of measures which will provide much needed support across the country.
297. Deputy Barry Ward asked the Tánaiste and Minister for Finance if his Department has carried out any estimates into the cost to the Exchequer of implementing an upper limit cap on the cost of local property tax for people on lower, fixed incomes; and if he will make a statement on the matter. [11989/26]
Amharc ar fhreagraLocal Property Tax (LPT) was legislated for in 2012 in the Finance (Local Property Tax) Act 2012. On the introduction of the LPT, the Government decided that a liability to the tax should apply to all owners of residential properties, with no cap on the amount of tax payable, while maintaining a limited number of exemptions from the tax. These factors ensure that liable taxpayers are not charged more to account for a shortfall driven by exemptions or caps on LPT charges.
The design of LPT was considered by an interdepartmental group, chaired by Dr. Don Thornhill, in 2019. The 2019 report noted that, when viewed as a capital tax, property tax can be considered progressive since capital tends to be more heavily concentrated in the hands of higher income earners.
If an upper limit cap on LPT charges were to be introduced, many higher income earners would benefit from such a proposal – it would not be straightforward to design a cap which only applied to homeowners with lower incomes. An upper limit cap on LPT would also lead to distortion. Properties valued at similar amounts could be liable for significantly different amounts of tax, which would raise concerns regarding the equity and fairness of LPT.
Last year, officials in Revenue’s Statistics Branch conducted an extensive modelling and valuation exercise in respect of LPT liable properties for the valuation period 2026-2030. A paper outlining the process was published in September and is available on Revenue’s website: www.revenue.ie/en/corporate/documents/research/property-valuation-technical-paper-2026.pdf
This paper estimated that properties in band 10 or higher – properties with a valuation of at least €1,050,000 – account for approximately 2% of all properties liable for LPT and 13% of the total projected yield from LPT. In that context, introducing an upper limit cap on LPT could lead to a significant reduction in the revenue raised to pay for local services. Any shortfall would have to made up by increases in general taxation, or else lead to cuts to local services.
There are provisions in place to support people who have difficulty in meeting their LPT liabilities. These include a wide range of flexible payment options and a system of deferrals for those who meet certain criteria regarding income. The full range of payment options, which includes phased arrangements, are available to property owners on the Revenue website at: www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx.
The current system allows for a tax base that is broad and sustainable, while also accommodating households which need assistance to meet their LPT obligations. Introducing an upper limit cap on the amount of LPT charged would be regressive, resulting in an increased tax burden for those who do not meet the cap criteria or a reduction in funding for local services.
299. Deputy Paula Butterly asked the Tánaiste and Minister for Finance if he will examine the current €3,000 disregard applied to full-time undergraduate tuition fees when calculating tax relief on third-level education costs; if he will consider reducing this threshold in order to increase the level of relief available to families and students; and if he will make a statement on the matter. [25318/26]
Amharc ar fhreagraSection 473A of the Taxes Consolidation Act 1997 (TCA) provides for income tax relief in respect of qualifying tuition fees paid by an individual for a third level education course (including a postgraduate course), subject to the conditions set out in that section. The relief is granted at the standard rate of income tax (currently 20%), where an individual pays “qualifying fees” for an approved course whether on his or her own behalf or on behalf of another individual.
“Qualifying fees” refer specifically to tuition fees in respect of an approved course at an approved college and includes what is referred to as the “student contribution”.
The maximum amount of fees that can qualify for the relief is €7,000 per person, per course, per academic year. Each claim is subject to a single disregard amount each tax year. This amount is taken away from the total qualifying fees for the claim, such that relief can't be received on the disregarded portion. The disregard is currently €3,000 in the case of a full-time student and €1,500 for a part time student. If a claim has been made for more than one student or course, this disregard amount will only be deducted from the claim once.
Relief may not be claimed for fees that are funded by grants, scholarships, an employer or from any other source. If an individual receives partial funding towards course fees, this must be declared to Revenue when the relief is being claimed and deducted from the claim amount.
Further information on claims for tuition fees paid for third level education, including lists of approved colleges and courses, is available on the Revenue website at:
www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/index.aspx
It was announced in Budget 2026 that the annual student contribution fee will be permanently reduced by €500.
As the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.
300. Deputy Ruairí Ó Murchú asked the Tánaiste and Minister for Finance if he will provide an update on the work being carried out in his Department to fix the anomaly where many workers who live in the North and who work in the South are precluded from working from home due to the significant Revenue implications for their employers; if he will detail any contacts his Department has had on the matter with the equivalent British department in the past 12-months; and if he will make a statement on the matter. [26727/26]
Amharc ar fhreagraThe tax treatment associated with cross-border working has been subject to ongoing discussions in recent years, particularly given the increase in remote working as a result of the Covid-19 pandemic. However, cross-border working gives rise to complex issues involving shared taxing rights between different jurisdictions.
It should be noted that workers who reside in Northern Ireland and work in the State are not precluded from working from home. The availability of remote working is primarily a matter between the employer and the employee. An employer may allow an employee to work remotely in Northern Ireland, however, such arrangements may result in implications for the employer from a UK tax perspective. As such, any potential implications that may arise from such arrangements are outside the scope of my direct remit and that of my Department.
As cross-border working and the availability of remote working options have potential tax implications not only on an island of Ireland basis, but also internationally, it is important that the wide range of policy considerations that arise are fully understood and considered.
The second annual UK Ireland summit held in Cork on 12 March last, acknowledged the work on this cross border issue. The joint statement of the Taoiseach and the Prime Minister welcomed agreement to engage on reaching a decision in principle this year on a bilateral Ireland-UK approach to address concerns arising from hybrid cross-border working.
My Department is continuing to engage on this matter, which includes the following steps:
Obtain Better Data - There was a general acceptance that data in relation to the nature and extent of cross-border working could be improved. In this regard, my Department commissioned the ESRI to undertake a research project in this area. In June 2024, the ESRI published its report entitled ‘A Study of Cross-Border Working on the Island of Ireland’. This paper estimates the number of cross-border workers, as well as providing an overview of the profile and characteristics of cross-border workers.
Minimise Administrative Burden - Revenue has looked at ways to minimise and simplify the administrative burden insofar as possible. Revenue has published guidance in this regard which will be of assistance to employers and employees.
International Discussions - My Department is engaging in international discussions on the policy implications of cross-border working, including at both EU and OECD level. The OECD has commenced its work on global mobility and my officials are continuing to engage on this matter, and also remain open to engaging bilaterally with other jurisdictions as appropriate to the circumstance.
My Department has commenced engagement with the UK Treasury and His Majesty’s Revenue and Customs (HMRC) to facilitate an exchange of views and experiences in relation to cross-border tax issues. This engagement has included an initial meeting between the Department of Finance and the UK Treasury in August 2025, followed by a further meeting in October 2025 which was attended by officials from HMRC and Revenue. My Department and the UK Treasury have agreed to continue discussions on these matters in 2026. Revenue will provide support to the Department in its future deliberations with the UK Treasury and HMRC on the issue.
301. Deputy Michael Cahill asked the Tánaiste and Minister for Finance to urgently address inheritance tax brackets for childless couples, single people and families; and if he will make a statement on the matter. [26895/26]
Amharc ar fhreagraCapital Acquisitions Tax (CAT) is a tax which applies to both gifts and inheritances and is charged at a rate of 33%. For CAT purposes, the relationship between the person giving a gift or inheritance and the person who receives it determines the maximum amount, known as the “Group threshold”, below which CAT does not arise. It is important to say that the group thresholds were most recently increased in Budget 2025 as follows:
The Group A threshold, which in general applies where the beneficiary is a child of the disponer, increased to €400,000 from €335,000.
The Group B threshold increased to €40,000 from €32,500. This threshold applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer.
The Group C threshold increased to €20,000 from €16,250, with this threshold applying in all other cases.
These increases amounted to an increase of approximately 19.4% on Group A, while Group B and C Thresholds increased by 23%.
As the Deputy will be aware, my officials examined CAT as part of last year's annual Tax Strategy Group exercise. The resultant papers outlined the tax policy considerations for the Government and the options available to it in forming last year's Budget. They were published in advance of the Budget and are the best means of considering issues such as inheritance tax in an analytical and transparent way. The Tax Strategy Group is not a decision-making body and the papers produced by my Department are simply a list of options and issues to be considered in the Budgetary process. The Tax Strategy Group paper relating to CAT also examined a number of cost modelling exercises, including proposals to amend the Group B threshold parameters which I am aware a number of Deputies have raised in the past year. My officials intend to include a further update of this matter in the Tax Strategy Group papers this year.
As demonstrated by that exercise, there is a significant associated cost with further changes to the group thresholds.
I recently met with the 'End Discrimination in Inheritance Tax' group who are an advocacy group in relation to this matter, and am committed to ongoing engagement. I do understand the concerns they have raised, along with the burden of capital taxation.
Finally, the Deputy should note that any further changes to the thresholds and who falls within these thresholds must be considered among various other demands within the overall Budget package, as they have been in the past. In that regard, you should note that the CAT group thresholds are kept under review annually by my officials throughout the Finance Bill cycle.
303. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance if he will impose a windfall tax on energy companies, similar to the temporary solidarity tax imposed during the initial invasion of Ukraine in 2022, in order to ensure that unjustified profits are not made on the recent spike in international gas prices; and if he will make a statement on the matter. [26929/26]
Amharc ar fhreagraThe Temporary Solidarity Contribution (TSC) was a temporary and time-limited emergency intervention, arising out of the increase in energy prices as a result of the war in Ukraine. It was introduced in line with Council Regulation (EU) 2022/1854 of 6 October 2022 to tackle windfall gains being made in the energy sector at the time. Specifically, the TSC was levied on fossil fuel producers and applied at a rate of 75 per cent on surplus taxable profits in both fiscal years 2022 and 2023.
Importantly, while the TSC was administered by the Revenue Commissioners, it was not a tax measure; it was a solidarity contribution provided for in an energy regulation agreed at EU-level under Qualified Majority Voting (QMV) procedures. As such, the TSC formed part of a co-ordinated European response, reflecting the highly interconnected nature of EU energy markets and a view that an emergency intervention to mitigate the effects of high energy prices could not be sufficiently achieved by Member States individually.
It is also worth noting that it was introduced in response to a more significant price shock – I am advised by the Department of Climate, Energy and the Environment that the average gas price in the second half of 2022 was 319 GBpence/therm, compared to 131 GBpence/therm for the month of March 2026.
In June 2025, the Department of Climate, Energy and Environment established the National Energy Affordability Taskforce (NEAT) to identify, assess and implement measures that will enhance energy affordability for households and businesses while delivering key renewables commitments, and protecting security of supply and economic stability. The First Report of the Taskforce was published last November.
In response to the ongoing conflict in the Middle East, further NEAT meetings have taken place over the last month, bringing together senior representatives from across Government, the energy sector, and the Commission for the Regulation of Utilities (CRU) to examine the macro implications of the conflict for global energy markets; current supply and pricing conditions across oil, gas and electricity in Ireland; customer support measures in place; and the European response to the crisis.
At present the Government is taking action to help households and businesses with the cost of fuel and energy through the reduction of excise on petrol and diesel and a reduction in the NORA Levy. The combined March and April support packages delivered reductions of 32 cent per litre of diesel and 27 cent per litre of petrol. Government has also extended the fuel allowance season by a further four weeks, providing support to vulnerable groups such as pensioners, carers, people with a disability and low-income working families. To provide targeted relief to haulage and bus passenger operators, the Government has increased the maximum repayment allowable under the Diesel Rebate Scheme from 7.5 cent to 12 cent per litre of diesel. This will apply to diesel purchased from 1 January 2026 until 30 June 2026. The measures are a direct response to the worrying conflict in the Middle East, a conflict that we all hope can be brought to an end. Government has also deferred the carbon tax increase which was scheduled to take effect from 1 May until 14 October 2026. This will provide additional relief to consumers of kerosene, marked gas oil, natural gas, solid fuels and other relevant fuels.
Furthermore, Government announced a comprehensive €100 million Fuel Subsidy Support Scheme to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs. The April support package also includes further supports for haulage and bus passenger operators, including local link and school transport providers.
Government is also making crucial investments in renewable energy, in our electricity grid and, importantly, in energy efficiency. The ongoing conflict in the Middle East underlines – once again – why we must accelerate the deployment of renewables across all sectors, continue to invest in our grid, and continue to invest in retrofitting of homes and businesses across the country.
Further analysis will now be carried out in order to inform the Energy Affordability Action Plan. A dedicated NEAT subgroup is being established to monitor global and national energy supply, with a separate subgroup to advise on appropriate demand-side responses. This Plan will include a broad review of cost drivers in the energy sector and will identify a comprehensive range of solutions. It will further progress work that has been completed to date on energy poverty, including work from the Energy Poverty Steering Group. Specific engagement and measures to address those most at risk of energy poverty will also be a key feature of the Energy Affordability Action Plan due for publication later this year.
304. Deputy Noel McCarthy asked the Tánaiste and Minister for Finance if he has considered the recommendations of the Funds Sector 2030 report in the context of the new savings scheme he proposes to introduce; if so, whether any changes to the taxation or regulatory treatment of investment funds are being considered in alignment with that scheme; and if he will make a statement on the matter. [26886/26]
Amharc ar fhreagraOne of the aims of the Savings and Investments Union is to create better financial opportunities across the EU, providing people with more opportunities to invest and provide for their current and future prosperity. In September 2025, the European Commission adopted a Recommendation on increasing the availability of Savings and Investment Accounts (SIAs) in Member States and this included an outline of their key characteristics.
Ireland still does not have a sufficiently diversified savings and investment culture. Too much of people’s hard-earned savings remains in low-yield deposits, where inflation can erode value over time. Deposit accounts are right for many people and for many needs. But they should not be the only practical option. Investment in capital markets can offer households another path to long-term financial wellbeing, while also supporting growth and competitiveness in the wider economy.
The tax treatment of retail investments was considered as part of a broader review into the funds and asset management sector in Ireland, which culminated in the ‘Funds Sector 2030’ report that was published in October 2024.
In recognition of the importance of encouraging retail investment, Budget 2026 provided for a reduction in the rate of taxation on returns from Irish and equivalent investment funds and Irish and certain foreign life assurance policies from 41% to 38% which took effect from 1 January 2026.
In addition, Budget 2026 also included a commitment to publish a roadmap in 2026, setting out the intended approach to simplify and adapt the tax framework to encourage retail investment in future Finance Bills. The roadmap, which will be published in the coming months, will take into consideration developments at EU level in respect of the Savings and Investments Union, including the Recommendation on SIAs and continue to draw upon best practice in other countries who operate successful savings accounts.
The ‘Funds Sector 2030’ report made a number of recommendations which were aimed at enabling greater retail investment in Ireland. This included the establishment of an annual ‘Savings and Investment Forum’ which was convened for the first time on 31 March 2026. At the Forum, I announced the Government’s intention to introduce the legislative framework for an Investment Account in 2026. The policy objective is to make investing simpler, clearer, and more accessible for ordinary people, and help their hard-earned money work harder for them over time.
The aim is to legislate for the framework in 2026 and to allow market participants to offer accounts to the public from 2027. The aim is that the account should be simple, designed as a one-stop option for individuals, be accessible, tax efficient, easy to administer, transparent on fees and portable across borders where possible. will be designed as a simple. The account will also be a key part of a broader rethink of the taxation of retail investment.
In terms of designing the model that best fits the Irish economy and the needs of Irish households, the views of relevant experts are being considered as well as learnings from best international practices.
