limits announced in Budget

Tax free threshold v fair imo - will cover a lot of the small nest egg / house deposit market this is aimed at and encourage consistent saving over time. It was never designed for those already investing with large lump sums imo
A couple can invest 100k tax free for example
 
There was always going to be a limit and a threshold.
If you don't go over the limit, it's a tax break as you don't pay the 33 per cent on gains as one would for dirt or CGT or 38 per cent DD.
1000 per month is an amount palatable for most people.
Would have I prefer a higher threshold so I could benefit more? Yes of course. However, realistically that was never going to happen and, even if I have more funds to invest, I am not sure that it would be fair I could have additional gain tax free.
 
Premos said:
There was always going to be a limit and a threshold.
If you don't go over the limit, it's a tax break as you don't pay the 33 per cent on gains as one would for dirt or CGT or 38 per cent DD.
1000 per month is an amount palatable for most people.
Would have I prefer a higher threshold so I could benefit more? Yes of course. However, realistically that was never going to happen and, even if I have
Click to expand...
Why was it never going to happen?. Other European countries are a lot higher
 
Initial figures show that it is better value than the existing strucutures, even at 35%.

From an advisor point of view, we will now have a two tiered investment approach. If someone comes to me with €100,000 to investment for instance, €12,000 per spouse and €76,000 into an old product. So instead of having one investment plan, they will now have three!
 
12K max per year is ok, just about, but we have a history of not updating these rates over a long time
e.g.
- CGT €1,270 annual exemption is there from punt era of IR£1,000;
- CGT indexation gone since 2003;
- rent a room relief was IR£6,000 in 2001, €14K: 2017-2026, and finally going to €16K: for 2027
 
I wonder if you have to drip feed it or can it be done in one go?

In the current climate, I also wonder would insitutions develop some type of easy-to-understand and access bond products too
 
Steven Barrett said:
I was hoping it would be earlier too but I imagine the providers needed time and they didn't want a race to see who would get to market first.
Click to expand...
Hard to know why they would need so much time to setup an account that can’t have any tax calculations for at least 3- 4 full years after setup.

Oversell though pleasantly surprised the higher tax free threshold is more important that the lower than expected yearly limit. Great for ongoing savings.

Doesn’t appear at all suited to the initially stated claim of getting the billions off deposit but I guess look on the bright side.
 
Last edited:
Numbers bang on what I posted as my optimistic guess.

Despite the initial aim the government marketing can’t be about people who have 50k in the bank already.

It’s about starting to save. 1k per month is about the max acceptable number. To be fair that’s 2k per month per couple. Thats a lot to be putting away for the long term after pensions.
 
"There will also be no need for anyone to engage with Revenue on it, and there will be no capital gains tax, no dividend withholding tax, no investment undertaking tax, no life assurance exit tax." https://www.irishexaminer.com/news/politics/arid-41920270.html

I assume he's talking about DWT on Irish shares - that's about 15 companies. Maybe Irish based distributing ETFs? I'd like to see it but I doubt they've come to an arrangement with, in particular, the US and German tax authorites.

(At 12k per year building up a useful dividend income portfolio won't be an issue for most people anyway until maybe 2050 or later.)
 
First year cost €5.5m and full year cost €11.5m. Hardly a subsidy to the rich!


The account will be available to Irish resident individuals, aged 18 and over, who hold a PPSN. The account will include a flat rate 1% tax applied to the value of the account above the €50,000 tax free threshold, with an annual contribution limit of €12,000.

The value of the account will be calculated daily, with the average of the daily values being used for the purpose of calculating the tax due, if any.

On launch, only one account will be allowed per person, with consideration being given in future years to whether provision can be made for multiple accounts.

Eligible providers will be MiFID-authorised service providers, regulated fund managers, and insurance companies. On introduction, the eligible products allowed to be held in the account are limited to shares, bonds, investment funds and insurance-based investment products. 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 taxdue.

Further details will be set out in Finance (No. 2) Bill 2026.
Click to expand...
 
Setforlife said:
Oversell though pleasantly surprised the higher tax free threshold is more important that the lower than expected yearly limit
Click to expand...
When you plug it through a model, the tax free threshold really doesn’t matter that much (which is why they’ve been generous).
€30k or €50k is €200 a year saved per account (max). Less than they increased the income tax credits by.

The 1% and annual limit were the importsnt numbers. The tax free threshold is largely psychological in effect.
 
TheJackal said:
12K max per year is ok, just about, but we have a history of not updating these rates over a long time
e.g.
- CGT €1,270 annual exemption is there from punt era of IR£1,000;
- CGT indexation gone since 2003;
- rent a room relief was IR£6,000 in 2001, €14K: 2017-2026, and finally going to €16K: for 2027
Click to expand...

Also, the €3,000 tax free gift allowance has not been increased since introduced in 2003
 
You must log in or register to reply here.
Back
Top