346. Deputy Thomas Gould asked the Minister for Finance for an update on plans for deemed disposal tax. [62830/25]

The Deputy has asked about deemed disposal, which is an anti-avoidance measure that applies to investments in Irish domiciled investment funds and life assurance products, as well as equivalent offshore funds and certain foreign life assurance products. Under the deemed disposal rule, tax is levied eight years after an investment is made, and every subsequent eight years, regardless of whether or not a disposal has in fact occurred. The tax is levied on any gain in the value of the investment from the date of acquisition to the date of the deemed disposal. On the ultimate disposal of the investment, any tax paid is allowed as a credit against the final tax liability. The purpose of deemed disposal is to prevent the indefinite roll-up of income and gains and the associated loss of tax to the Exchequer.

I am aware of the concerns which have been raised in relation to the current regime for the taxation of retail investment, and the application of deemed disposal in particular.

I am committed to taking the necessary action to support retail investment in Ireland. The reduction from 41% to 38% in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products, that I announced in Budget 2026, is an important first step in this regard.

However, I am conscious of the need for further adaptation of the existing complex taxation regimes, encouraging retail investment while ensuring appropriate anti-avoidance protections. Therefore in Budget 2026 I also announced my intention to publish a roadmap early in 2026, setting out an approach to simplify and adapt the tax framework to further support retail investment. This roadmap will facilitate due consideration of the Funds Sector 2030 Report, which made recommendations in relation to deemed disposal. The roadmap will also take into account the European Commission’s recommendation on Savings and Investment Accounts. I hope that further progress can be made across coming budgets to address some of the existing obstacles to greater retail investment.