Josepha Madigan (Dublin Rathdown, Fine Gael)
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174. To ask the Minister for Finance the steps the Government is taking to reform the taxation of personal investments for individuals, and if he will consider introducing a scheme similar to the ISA in the UK or the TFSA in Canada, allowing individuals to invest a small amount each year tax-free to support savings for future financial goals like house deposits and retirement income; and if he will make a statement on the matter. [27882/24]

Richard Bruton (Dublin Bay North, Fine Gael)
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178. To ask the Minister for Finance if he is aware of schemes in the UK and Canada to allow individuals to accumulate small sums each year into personal funds which grow tax-free; if the tax strategy group has assessed changes in certain rules on such funds in Ireland; and if he will make a statement on the matter. [27924/24]

Jack Chambers (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 174 and 178 together.

On 6 April 2023, the Minister for Finance published the Terms of Reference for a Review of the Funds Sector in Ireland ("Funds Sector 2030: A Framework for Open, Resilient & Developing Markets"). As per the Terms of Reference, and following on from the recommendation of the Commission on Taxation and Welfare, the Funds Review was tasked with examining, inter alia, “the taxation regime for funds, life assurance policies and other related investment products, with the goal of simplification and harmonisation where possible; and to do so with a net revenue-raising or neutral mandate”.

The majority of responses to the Funds Review public consultation addressed the taxation of investment funds (including ETFs) and life assurance policies, with some proposing the introduction of a tax-advantaged, ISA-type, scheme. The Funds Review Team is considering a range of options in order to meet the objective of simplification and harmonisation. The Funds Review report is currently being finalised and I look forward to considering its findings. It would not be appropriate to speculate on the outcome of the review in advance of its completion.

The Tax Strategy Group (TSG) is in place since the early 1990s and is chaired by the Department of Finance with membership comprising senior officials and political advisers from a number of Civil Service Departments and Offices. Papers on various options for tax policy changes are prepared annually by Department of Finance officials.

The TSG is not a decision making body and the papers produced by the Department are simply a list of options and issues to be considered in the Budgetary process. The 2024 TSG will be held shortly.