John Lahart (Dublin South West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

311. To ask the Minister for Finance if he has considered the introduction of an individual savings account scheme in Ireland, similar to the UK model, to encourage long-term savings, promote investment, enhance financial inclusion, and support homeownership; if he will outline any analysis undertaken on its potential benefits for the economy; and if he will make a statement on the matter. [9571/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

On 22 October 2024 ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ was published. It was a wide-ranging review of the funds and asset management sector.

The terms of reference included review of the taxation regimes for funds, life assurance policies and other related investment products. As part of this aspect of the review, proposals made in relation to the development of an incentivised retail savings and investment product, like the ISA in the UK, were considered.

The report was very timely given the interest in growing retail savings and investments in both Ireland and in the new mandate of the European Commission in the context of the EU Savings and Investment Union (SIU) proposal.

The report made eight recommendations on the topic of retail investment, including recommendations to better align the tax on investment funds and life assurance products with that of direct equities by removing deemed disposal and aligning the rate of tax to 33%.

The report noted that there may be merit in exploring an incentivised savings and investment account in due course and developments at EU level in the context of the EU SIU will have relevance in this regard. However, the report concluded that measures proposed for amending the existing taxation of investment funds and life assurance products should be prioritised as these address the most substantive issues raised as part of the review.

The Programme for Government has committed to progress and publish an implementation plan for consideration in Budget 2026 taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland, and I, working with my officials, will consider next steps in this regard over the coming months.