Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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150. To ask the Minister for Finance the investment reforms being considered in advance of Budget 2026; if consideration will be given to cutting the rate of tax on certain investment funds from 41% bringing Ireland more in line with other EU countries; and if he will make a statement on the matter. [54426/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am aware of the importance of supporting retail investment. As the Deputy may be aware, in October 2024, ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’ was published, following a wide-ranging review of the funds and asset management sector. This report includes 42 recommendations to ensure that Ireland’s funds sector framework remains resilient, future-proofed, supportive of financial stability and a continued example of international best practice. Eight of these recommendations are to promote increased retail participation in capital markets. Retail investors are also a key focus of the European Union Savings and Investment Union.

I am committed to taking the necessary action to support this important sector. Recognising the complexities of the current taxation regime for retail investment sector as a I announced in my Budget 2026 speech, my officials are developing a roadmap for the taxation of retail investment, which will set out the intended approach to simplify and adapt the tax framework to encourage retail investment in future Finance Bills. The roadmap will take account of developments at EU level in respect of the Savings and Investments Union and is expected to be published by early 2026.

While the roadmap is being developed, I have taken action in Budget 2026, announcing changes to the relevant applicable tax rates. The rate of Investment Undertaking Tax (IUT), Life Assurance Exit Tax (LAET) and the rate of tax applicable to investments in equivalent offshore funds) and certain foreign life assurance policies will be reduced from 41% to 38%.