Financial Services
Dail Éireann — 2026-09-24
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Colm Brophy (FG), Dublin South-West

I thank the Deputy for raising this matter. I am replying to her today on behalf of the Tánaiste and Minister for Finance.
The deemed disposal rule was introduced in 2006 as an anti-avoidance measure. It applies to investment undertaking tax, life assurance exit tax and equivalent taxes in the self-assessed space applying to investment through certain kinds of funds and life assurance policies. Exchange-traded funds or ETFs are among a range of investments to which the rule applies. It was introduced because a pattern was observed at that time of products being structured so that tax could potentially be indefinitely deferred, which was contrary to the spirit of the gross roll-up tax regime introduced in 2000.
Under the deemed disposal rule, tax is levied eight years after the original investment is made, and every subsequent eight years thereafter. It is charged at the general tax rate for such investments, on any gain in the value of the investment from the date of acquisition or the last deemed disposal. The tax paid under the deemed disposal rule is effectively a prepayment of tax rather than an additional charge to tax, and is allowed as a credit against the tax due on a subsequent chargeable event, with any excess paid being refundable. Like any other aspect of the tax system, the deemed disposal rule is kept under review and may be subject to policy change. Just because a measure was introduced in response to relevant concerns at the time does not mean it should not be reconsidered in the current context.
The Tánaiste has been very clear that more should be done to encourage and support people in Ireland to put their money to work through investing in capital markets. That is why, at the first annual savings and investment forum in March, he announced his intention to introduce a new investment account, similar to the savings and investment account models operating in other jurisdictions but designed to meet Ireland's specific needs in terms of encouraging retail investment. It aims to reduce the complexities related to retail investment taxation and allow retail investors to grow their savings more efficiently.
Importantly, one of the key guiding principles underlying the design of the account is a focus on encouraging new retail investors, rather than directing investment into any particular sector or product. The new account aims to reduce the complexities related to retail investment taxation and allow retail investors to grow their savings more efficiently. A lifetime tax-free threshold will apply to the account. Where the value is above the threshold, a low rate of tax will apply to the excess value of the account. An annual limit will apply to the maximum amount that can be contributed to the account.
Existing regimes in place for taxation of retail investment, including the deemed disposal rule, will not apply to the new account. All tax reporting, tax administration and payment of any tax due to Revenue will be managed by the provider, thereby removing the requirement for the individual investor to calculate or return any tax due.
The Tánaiste believes that the introduction of this account will be a key step in supporting Irish people to put their money to work. However, as stated, that does not mean that the broader tax regime for retail investment is not subject to review and potential change over the coming years.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-09-24/debate/main
Retrieved: 2026-09-28T05:50:50+00:00
Sitting date: 2026-09-24