Willie O'Dea (Limerick City, Fianna Fail)
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184. To ask the Minister for Finance his plans to support more retail investment in the funds sector. [68362/26]

Simon Harris (Wicklow, Fine Gael)
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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.

Design of the proposed investment account is taking place in the context of the EU Savings and Investments Union project. The main aim of SIU is to help Europeans invest more to ensure that they have better financial outcomes and are better provided for in the future. Furthermore, the project also seeks to deepen the pools of capital that can be made available to ultimately grow the European economy.

You may be aware that on the 31 March last, I convened the first Annual Savings and Investment Forum. This brought together key stakeholders from across the financial services sector, consumer representatives, and policymakers to support the continued evolution of Ireland’s savings and investment landscape.

A roadmap on retail investment taxation was published on 31 August 2026, which set out a proposed approach to simplify and adapt the tax framework while retaining necessary and important anti-avoidance protections, in a proportionate manner. The investment account was a key aspect of the roadmap.

Department of Finance officials have continued to engage with a broad range of stakeholders, 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, while also reflecting international best practices.

Further detail on the investment account will be announced as part of Budget 2027 on October 6th.

Pearse Doherty (Donegal, Sinn Fein)
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185. To ask the Minister for Finance if he intends to ensure equity of treatment and provide options for people that choose to keep their savings in cash accounts in the savings and investment scheme. [68623/26]

Simon Harris (Wicklow, Fine Gael)
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Ireland still does not have a sufficiently diversified savings and investment culture. Too much of people’s hard-earned savings remains in low-yield deposits, where inflation can erode value over time. Deposit accounts are right for many people and for many needs. But they should not be the only practical option.

Ireland has one of the highest rates of savings in the EU, but when this money is held in deposit accounts it is eroded by inflation. The goal of the investment account is to encourage and support participants to invest in a manner that is simple to administer, as opposed to leave money on deposit.

Encouraging investment has been a long-standing Government position. 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.

Department officials have continued to engage with experts design an account that best fits the Irish economy and Irish households and reflects international best practices.

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. This roadmap was published on 31 August 2026. The roadmap also set out the key parameters of the proposed new investment account, to facilitate the design and introduction of the necessary operational systems by providers in order to allow accounts to be available in 2027.

Further detail on the investment account will be announced as part of Budget 2027 on 6th October.