37. Deputy Joe Neville asked the Tánaiste and Minister for Finance the estimated cost of reducing investment undertaking tax on retail investment gains to align with capital gains tax; and if he will make a statement on the matter. [48236/26]

Irish resident investors investing through investment funds and life assurance policies are subject to tax through the gross roll-up regime. Under the gross roll-up regime, no annual tax on income or gains arising to a fund is charged but the fund is responsible for deducting Investment Undertaking Tax (IUT) on the triggering of a chargeable event. Generally, chargeable events occur when value passes from the fund to the investor or on a deemed disposal every 8 years.

Budget 2026 introduced a reduction in the taxation rate that applies to Irish and equivalent offshore funds and Irish and certain foreign life assurance products, from 41 per cent to 38 per cent.

Capital Gains Tax (CGT) is chargeable on a gain arising on the disposal of an asset, including a directly held share, at the rate of 33 per cent. The first €1,270 of chargeable gains of an individual, in any year, are exempt from CGT.

I am advised by Revenue, that IUT is withheld by investment funds and paid over to Revenue. These funds can contain retail investors or institutional investors or a mix of both. The make-up of investor types within the funds is not required to be reported to Revenue, therefore it is not possible to isolate the amount of IUT associated with retail investors only and as a result it is not possible to estimate a cost of reducing investment undertaking tax from 38 per cent to 33 per cent for retail investors.