Finance Bill to set out investment-account details
The Government has given more details of its plans for an investment account aimed at encouraging more people to invest in shares, bonds, and other financial instruments.
The Department of Finance said that further details would be announced in Budget 2027, while the legislative framework for the account would be set out in this year's Finance Bill.
Tánaiste and Minister for Finance Simon Harris has also published a Roadmap for the Taxation of Retail Investment that sets out further plans to simplify and adapt the tax framework for retail investment.
The new investment account will be available next year to Irish tax-resident individuals aged 18 and over who hold a PPSN, with one account allowed per person.
No minimum contribution
The account will have a tax-free threshold, with a low flat rate of tax applying annually to the value of the account above that threshold.
There will be no minimum contribution requirement and an annual maximum contribution limit will apply.
The department said that the specific tax-free threshold, flat tax rate, and annual contribution limit would be announced as part of Budget 2027 on Tuesday 6 October.
The existing investment-tax regime – including the deemed-disposal rule – will not apply to investments held within the new account.
Providers to calculate tax
Qualifying providers will calculate, report, and pay any tax due to Revenue on behalf of the investor, in a measure that the department says will "significantly" simplify the administrative burden for account holders.
It adds, however, that "highly complex and risky products", such as derivatives and crypto assets, will not be eligible.
The Tánaiste said that, while Irish people were good at saving, there were "comparatively low" levels of direct retail investment.
He said that the new initiative would bring different types of investments together in one account, take the tax administration away from the individual, and give people flexibility to access their money when they need it.
Minister of State Robert Troy encouraged all sectors involved in financial services – including the credit-union movement – to examine the roadmap and bring forward their views as the Government finalised legislation.
Further tax changes
As well as the investment account, the roadmap identifies three areas for consideration in reforming the existing taxation regime for retail investment from Budget 2028 and beyond:
- Reducing the rate of taxation,
- Reviewing the deemed-disposal rule, and
- Introducing administrative simplifications.
Under the current system, for some investment products, disposal of assets is deemed to occur every eight years, when investors must pay tax on any gains in that period, even if they have not sold their fund.
The department said that these areas would be analysed further, taking into account the impact of any changes on the exchequer and the need to retain "appropriate" anti-avoidance protections.