41% Exit Tax - Will we see Budget 2026 changes

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The Govt has been dragging their feet on this for years now:
-The terms of reference for the Review were published in April 2023 and a multi-disciplinary team was established.
-They sent their final report to Govt in Summer 2024.
-Govt held on to the report and only published it in Oct 2024, just after Budget 2025 was announced.
-Over the last year I'd hoped they were digesting the recommendations from the report. Fair enough, they needed time to strategise and implement.
-Based on the recent replies it seems like no plan has been agreed.
-I'm not holding my breath for any change to be announced in Budget 2026 unfortunately, but I'd love to be proven wrong
 
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mustang01 said:
Rumours on Reddit this eve that’s it’s going on Tues.
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If this happens SF are going to have to do alot of reading up and research on ETFs, deemed disposal and exit tax, they probably never heard of it before. Then having learned about "deemed disposal" they will be calling on the minister to reverse it but also introduce it for other investments.

Also what about all the people that sold their US domiciled ETFs when revenue removed their "clarification" in 2021 that US domiciled ETFs would subsequently have to be individually assessed and paid the exit tax , Will they be saying they were effectively forced to sell their ETFs because of revenue throwing mud onto the windscreen regarding the classification of ETFs and the taxation associated with them?
 
Ivon Yates on the Path to Power podcast that DD is on the way out. Matt Cooper had introduced the issue the below is (what I presume is auto generated) transcript. The podcast is available for free. Hope it’s okay to post. I think Ivon is pretty well connected.

“For the ETFs, I actually did a conference recently on it.

If you don't dispose of an EDF within eight years, you're subject to 41%, so they want to roll it over. I'm pretty certain that that will be done, and it's the right thing to do.”

From Path to Power: Budget Expectations & Gavin's Gaffes, 4 Oct 2025
podcasts.apple.com

Budget Expectations & Gavin's Gaffes

Podcast Episode · Path to Power · 04/10/2025 · 49m
podcasts.apple.com podcasts.apple.com
This material may be protected by copyright.
 
The Business Post is saying otherwise...

On exchange-traded funds (ETFs), finance minister Paschal Donohoe is examining the deemed disposal regime, where a 41 per cent tax is applied every eight years on ETFs, even if investors haven’t sold their assets.

While the principle of addressing this issue has now been accepted, the signals are it won’t happen in this budget, but may be signalled on budget day as part of a wider funds review.

www.businesspost.ie

‘A very tough ask’: Donohoe and Chambers struggle to hold the line

www.businesspost.ie www.businesspost.ie
 
PQ 2 Oct 2025
www.oireachtas.ie

Tax Code

Tax Code Dáil Éireann Debate, Thursday - 2 October 2025
www.oireachtas.ie
265. Deputy Michael Murphy asked the Minister for Finance his plans regarding life assurance exit tax (LAET), including consideration of reducing the current 41% rate, abolishing the 1% Government levy, and reviewing the eighth-year deemed disposal rule; and if he will confirm whether reform of LAET will be progressed separately to wider work on exit tax and ETFs as part of the funds review implementation plan.

Written answers​

As you are aware, in October 2024 my predecessor published “Funds Sector 2030: A Framework for Open, Resilient & Developing Markets.” This report sets out 42 recommendations to ensure that, in pursuit of continued growth in the funds and asset management sector, Ireland’s funds sector framework remains resilient, future-proofed, supportive of financial stability and a continued example of international best-practice. Recommendations 23 of the Fund Review Report includes the recommendation set out in your question.

The 2025 Programme for Government has committed to progress and publish an implementation plan taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland. This is a complex area of taxation that encompasses a wide breadth of tax legislation on domestic funds, life assurance products and offshore funds. Detailed consideration is therefore being given to the best way to bring about the necessary reforms and to support a greater level of retail investment in capital markets. It is likely given the breadth of the Funds Sector 2030 review that the delivery of any agreed associated tax measures will take place over multiple Finance Bill cycles. This work will also take account of developments at an EU level in respect of the Savings and Investment Union.
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Same response as always, no hints for any Budget 2026 steps
 
As I’ve said before if this is happening on Budget day it is one of the few things that will not have been leaked in advance.

Other ministers only get sight of tax measures in the cabinet meeting immediately before the Budget speeches.
 
www.gov.ie

Statement by Minister Donohoe on Budget 2026

Statement by the Minister for Finance Paschal Donohoe on Budget 2026
www.gov.ie www.gov.ie
The EU Savings and Investments Union aims to make it easier, safer and cheaper for people to invest. This gives citizens a better return and helps to fund businesses so that they can continue to grow.

In recognition of the importance of encouraging retail investment, today I am reducing the tax rate that applies to Irish, and equivalent offshore funds and foreign life assurance, products from 41% to 38%.

Reflecting the complexity of the tax framework for retail investment, and to facilitate due consideration of the Funds Sector 2030 Report, I intend to publish a roadmap early next year, setting out my intended approach to simplify and adapt the tax framework to encourage retail investment. It will take into account the European Commission’s recommendation on Savings and Investment Accounts.

Of course, Ireland has a leading position in the investment funds and asset management industry globally, supporting almost 37,500 jobs across the country.

An Implementation Plan for the overall Funds Sector 2030 Report is also being published today.

That report recommended a public consultation on potential options for an entity level tax for IREFs. I do not propose to progress this recommendation. However, my Department will undertake a public consultation on proposals to simplify the IREF regime without limiting its effectiveness.
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Edit: Report is here
 
From the Funds Review Implementation Plan
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