{"id":609493,"date":"2026-08-30T19:04:13","date_gmt":"2026-08-30T19:04:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/609493\/"},"modified":"2026-08-30T19:04:13","modified_gmt":"2026-08-30T19:04:13","slug":"changes-to-38-tax-paid-on-investment-funds-to-be-considered-in-coming-weeks-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/609493\/","title":{"rendered":"Changes to 38% tax paid on investment funds to be considered \u2018in coming weeks\u2019 \u2013 The Irish Times"},"content":{"rendered":"

Changes to the 38 per cent tax paid every eight years on certain investment funds, known as deemed disposal<\/a>, will be considered by the Government in the \u201ccoming weeks.\u201d<\/p>\n

T\u00e1naiste Simon Harris<\/a> will this week announce the full details of a new savings and investment scheme<\/a> designed to try to encourage the public to better invest the estimated \u20ac175 billion of household savings<\/a> currently on deposit in Irish banks. <\/p>\n

Ireland has one of the lowest retail participation rates in capital markets in the European Union. <\/p>\n

On Sunday morning Harris confirmed that deemed disposal tax would not apply to the new savings and investment scheme, and said the Government was also considering the future of the deemed disposal tax more broadly. <\/p>\n

\u201cDeemed disposal will not apply to this account and we will take a broader look at deemed disposal overall in the coming weeks too,\u201d he said. <\/p>\n

Deemed disposal tax is charged on collective investments such as exchange-traded funds (ETFs) every eight years. It sees the investments treated as if they have been sold, even when no sale has taken place. <\/p>\n

In 2024, a landmark government report on the funds sector recommended ending the deemed disposal rule. In the 2026 budget, the rate of deemed disposal tax charged was cut from 41 per cent to 38 per cent. <\/p>\n

Earlier this year, Harris told the D\u00e1il he was \u201cnot convinced\u201d the deemed disposal tax was fit for purpose and he believed it was \u201coutdated\u201d. He said he wanted to see an \u201coverhaul\u201d of deemed disposal, as \u201cthe world has evolved and policy has not caught up\u201d. <\/p>\n

On his social media accounts on Sunday, Harris also confirmed a number of other details of the new savings and investment scheme. The scheme, which was first flagged in March, will be fully announced in Budget 2027, with the investment accounts expected to open next year. <\/p>\n

Those who participate will enjoy a tax-free threshold and any investments above that threshold will be subject to an annual \u201clow flat rate tax\u201d. Investors will not be required to make a minimum annual contribution to the fund, but there will be a maximum annual contribution set. <\/p>\n

\u201cThe tax-free threshold, the flat rate and the annual contribution limits will be unveiled on the sixth of October on Budget day,\u201d Harris said. <\/p>\n

He said there would be \u201cno minimum lock-in period for anything you put in the account\u201d.<\/p>\n

One account per person will be available to any Irish tax-resident individual over the age of 18. It is understood the account will place a low administrative burden on those who apply for one, with the Department of Finance trying to design a simple scheme to attract first-time investors. Harris said providers would administer \u201cany taxes, reporting and contribution limits\u201d.<\/p>\n

Those who use the accounts will be able to choose shares, bonds, funds, exchange traded funds and insurance-based products. Crypto assets including cryptocurrencies, derivatives and interest-bearing cash will be excluded from the scheme. <\/p>\n","protected":false},"excerpt":{"rendered":"Changes to the 38 per cent tax paid every eight years on certain investment funds, known as deemed…\n","protected":false},"author":2,"featured_media":609494,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,1398,61,60,70],"class_list":["post-609493","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-department-of-finance","tag-ie","tag-ireland","tag-simon-harris"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/609493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=609493"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/609493\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/609494"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=609493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=609493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=609493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}