Ken O'Flynn (Cork North-Central, Independent Ireland Party)
Link to this: Individually | In context

275. To ask the Minister for Finance further to Parliamentary Question No. 252 of 25 June 2026, whether the proposed Savings and Investment Account will impose an annual tax liability on unrealised gains, that is, on assets held but not sold; the proposed tax-free threshold under consideration; the proposed flat rate under consideration; to provide a direct comparison of this proposed annual-charge model with the UK ISA model, under which no tax applies to unrealised or annual gains; and if he will confirm a timeline for when these specific parameters will be published, given that the reply provided on 25 June 2026 addressed none of these four points directly. [50606/26]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context

The tax treatment of retail investments was considered as part of a broader review into the funds and asset management sector in Ireland, which culminated in the ‘Funds Sector 2030’ report published in October 2024.

In recognition of the importance of encouraging retail investment, Budget 2026 provided for a reduction in the rate of taxation on returns from Irish and equivalent investment funds and Irish and certain foreign life assurance policies from 41% to 38% which took effect from 1 January 2026.

Budget 2026 also included a commitment to publish a roadmap in 2026, setting out the intended approach to simplify and adapt the tax framework to encourage retail investment. The roadmap will be published in summer 2026.

At the Savings and Investment Forum on 31 March, I announced the Government’s intention to introduce the legislative framework for an Investment Account in 2026. We want to make investing simpler, clearer, and more accessible for ordinary people, and help their hard-earned money work harder for them.

The aim is to legislate for the framework in 2026 and to allow accounts to be offered from 2027. The Government’s view that the account should be simple, accessible, tax efficient, easy to administer, transparent on fees and portable across borders where possible.

Department officials are continuing to engage with a broad range of stakeholders as work is progressing on the development of the account, taking on board the range of ideas on the design of an effective investment account in Ireland that best fits the Irish economy and the needs of Irish households and reflects international best practices. The investment account will be a key aspect of the roadmap for the taxation of retail investment, setting out an approach to simplify and adapt the tax framework to further support retail investment while retaining necessary and important anti-avoidance protections, in a proportionate manner.

Officials in my Department are currently developing policy options regarding the investment account framework which will form part of the deliberations for Budget 2027 over the coming months.