Dáil Éireann Debate, Thursday - 14 May 2026
260. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether his Department intends to commission any independent empirical analysis or behavioural modelling on the impact of the deemed disposal regime on retail investor behaviour, long-term savings patterns, Exchange Traded Fund participation, or capital allocation decisions; and if he will make a statement on the matter. [36105/26]
Amharc ar fhreagra262. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether his Department has assessed the comparative fairness of applying taxation to unrealised gains within regulated investment funds while direct equity investments are generally taxed only upon realisation of gains; and if he will make a statement on the matter. [36107/26]
Amharc ar fhreagra263. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether any assessment has been conducted on the impact of the deemed disposal regime on small and medium retail investors seeking to build long-term savings through diversified investment products; and if he will make a statement on the matter. [36108/26]
Amharc ar fhreagra265. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether his Department has conducted any assessment of the administrative complexity imposed on individual taxpayers by the self-assessment obligations associated with Exchange Traded Funds subject to the deemed disposal regime; and if he will make a statement on the matter. [36110/26]
Amharc ar fhreagra266. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether his Department has examined the extent to which the deemed disposal regime may discourage Irish retail investors from participating in diversified long-term investment products compared with consumers in other EU jurisdictions; and if he will make a statement on the matter. [36111/26]
Amharc ar fhreagra267. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether any analysis has been conducted on the interaction between the deemed disposal regime and the European Commission's Savings and Investment Union objectives; and if he will make a statement on the matter. [36112/26]
Amharc ar fhreagraI propose to take Questions Nos. 260, 262, 263 and 265 to 267, inclusive, together.
I am aware of the issues raised by retail investors regarding the complexities associated with the retail investment taxation regime, in particular, the issues associated with the deemed disposal rule and self assessment for certain forms of investments. The Funds Sector Review which was published in October 2025 includes a number of relevant recommendations for this sector, including the removal of deemed disposal. The Funds Review will be considered in the development of the roadmap on retail investment that will be published in the coming months.
In terms of analysis of the impact of the deemed disposal rule in particular on retail investment, I would note that in December 2025, the Central Bank published a report, ‘Retail Investor Participation in Ireland Consumer Research and Analysis’, which can be found on their website. This report notes that “the decision to invest is driven by a complex interplay of factors, including economic conditions, personal financial circumstances and psychological biases”.
It is notable that historically, participating in capital markets has not been viewed as an option for most Irish consumers. This combined with periods of significant market volatility may have played a role in the development of a financial culture with relatively low levels of trust and risk appetite, which favours cash and deposits over investments. The analysis suggests that the key obstacles to investment identified by non-investors are a lack of financial resources, psychological or emotional barriers and knowledge and understanding gaps. Taxation was not identified as a significant consideration for non-investors. However, it is the case that for existing retail investors, taxation was identified as a factor in their investment decision. According to the Central Bank’s research, 35% of investors reported that tax is a factor when considering an investment product. A key consideration is value, determined by the return on investment, after fees and tax have been deducted. This Central Bank research and analysis is also being considered in the context of the work underway on the roadmap for the taxation of retail investment.
This roadmap will also take the European Commission's Savings and Investment Account recommendation into consideration. A key aspect of the roadmap is the development of a new Irish investment account that aims to reduce the complexities related to retail investment taxation and allows Irish people to grow their savings more efficiently.
A key characteristic of this form of Investment Account, as per the Commission’s recommendation, is to be as simple as possible for the investor and for the onus of tax compliance to be placed onto the account provider. It is my intention that the new investment account being introduced will be simple and accessible for retail investors.
