Dáil Éireann Debate, Tuesday - 26 May 2026
201. Deputy Emer Currie asked the Tánaiste and Minister for Finance to provide an update on his review of the taxation of retail investment with a view to ensuring that existing investors are included in future tax measures; and if he will make a statement on the matter. [39177/26]
Amharc ar fhreagraI am aware that the current retail investment taxation system in Ireland has been characterised by stakeholders as complex and a disincentive to diversified investment by retail investors. I am committed to taking the necessary action to support this important sector.
As the Deputy may be aware, Budget 2026 introduced a reduction in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products, from 41% to 38%. This change also applies to investments in Exchange Traded Funds (ETFs) that are taxed under these regimes.
I am very conscious that there is more to be done to support retail investment in Ireland. However, it is important to acknowledge that any amendments to the current system, requires a balance between encouraging retail investments and protecting the Exchequer. To that end, Budget 2026 included the commitment to publish a roadmap to simplify and adapt the current taxation framework for retail investments while retaining necessary and important anti-avoidance protections in a proportionate manner. The roadmap will be published in summer 2026.
Earlier this year, at the first annual Savings and Investment Forum, I announced my intention to introduce the legislative framework for a new Investment Account in 2026. This new account is a key aspect of the roadmap and will be aligned with the European Commission’s recommendation to develop accessible, consumer-friendly savings and investment accounts across Member States. The accounts should be simple, accessible, tax efficient, easy to administer, transparent on fees and portable between providers, where possible. These accounts will be designed with stakeholders in mind, reducing the current complexity expressed by retail investors while also providing an easier and more accessible method of accessing capital markets for all Irish citizens.
In addition to the account, the work underway on the roadmap also includes considerations of the Funds Sector 2030 Review including the recommendations of the Funds Sector Review on the taxation of retail investment in relation to the issue of deemed disposal.
