{"id":76312,"date":"2025-10-12T19:06:10","date_gmt":"2025-10-12T19:06:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/76312\/"},"modified":"2025-10-12T19:06:10","modified_gmt":"2025-10-12T19:06:10","slug":"etf-investing-anomaly-endures-as-deemed-disposal-left-untouched-in-budget-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/76312\/","title":{"rendered":"ETF investing anomaly endures as deemed disposal left untouched in budget \u2013 The Irish Times"},"content":{"rendered":"

The Irish Government has once again ducked in this week\u2019s budget the chance to fix one of the most irritating quirks in the tax code: the ETF deemed disposal rule. <\/p>\n

Despite a 2024 review recommending its abolition and a cut in exit tax from 41 to 33 per cent, the latest budget left the rule unchanged.<\/p>\n

Under deemed disposal, investors in exchange-traded funds (ETFs) pay a 41 per cent (soon 38 per cent) exit tax every eight years, even if they haven\u2019t sold. <\/p>\n

The rule, introduced in 2006, undermines compounding and penalises prudence. It treats diversified investors more harshly than stock-pickers: profits on a speculative share are taxed at 33 per cent and only when sold, yet a low-risk global ETF gets hit earlier and harder. <\/p>\n

Losses can\u2019t even be offset.<\/p>\n

Minister of State for Financial Services Robert Troy<\/a>, while admitting deemed disposal is an \u201canomaly\u201d, hailed the rate cut and said it\u2019s \u201creally important that Irish investors invest in ETFs\u201d. <\/p>\n

However, the real deterrent isn\u2019t the rate; it\u2019s the rule. Deemed disposal brings needless complexity, forcing investors to frequently calculate notional gains and pay tax on profits they haven\u2019t realised. <\/p>\n

Most savers will avoid ETFs entirely rather than face that hassle. The Government insists reform will come \u201ceventually\u201d. <\/p>\n

For now the anomaly endures, a policy that undermines the very behaviour it should encourage.<\/p>\n","protected":false},"excerpt":{"rendered":"The Irish Government has once again ducked in this week\u2019s budget the chance to fix one of the…\n","protected":false},"author":2,"featured_media":76313,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[5168,72,61,975,60,50158],"class_list":["post-76312","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-budget","tag-business","tag-ie","tag-investment","tag-ireland","tag-robert-troy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/76312","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=76312"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/76312\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/76313"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=76312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=76312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=76312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}