Announced Tuesday 6 October 2026. A summary of the measures affecting pensions, investments and estate planning, prepared for our clients.
The headline change: a new Investment Account
From 1 July 2027 you may hold a single tax-advantaged Investment Account, with the provider handling all tax calculation and reporting. Contributions of up to €12,000 a year are permitted with no minimum, and balances up to €50,000 grow free of tax. Anything above that carries an annual 1% charge. Inside the account there is no CGT, no dividend withholding tax and no exit tax, and the eight-year deemed disposal rule does not apply.
Investment and exit tax falls again
From 1 January 2027, the rate of investment undertaking tax and life assurance exit tax falls from 38% to 35%. This follows the reduction from 41% to 38% in Budget 2026.
Capital taxes
| Measure | What Changed | From |
|---|---|---|
| Capital Gains Tax | Standard rate cut from 33% to 31% | Budget 2027 |
| Inheritance tax — Group A | Parent to child: €400,000 to €420,000 | 7 Oct 2026 |
| Inheritance tax — Group B | €40,000 to €44,000 | 7 Oct 2026 |
| Inheritance tax — Group C | €40,000 to €44,000 | 7 Oct 2026 |
The 33% inheritance tax rate is unchanged. The higher thresholds apply to gifts and inheritances
taken on or after 7 October 2026, so timing is now a live planning consideration.
Income tax and PRSI
- Standard rate band up €2,500 to a €46,500 cut-off for single earners
- Personal, PAYE and Earned Income credits each up €125 to €2,125
- USC 2% band ceiling up €1,600 to €30,300
- Employee PRSI rising to 4.35% on 1 October 2026 and 4.5% on 1 October 2027
Pensions
Pensions were notably quiet this year. The one item to note is the Standard Fund Threshold: the age-related valuation factors used to value defined benefit entitlements will be revised from 1 January 2027, which affects how close a defined benefit member sits to the threshold. State
pensions rose €10 per week, and auto-enrolment continues unchanged.
What this might mean for you
- Holding a life assurance bond or Irish fund? The arithmetic on moving to the new InvestmentAccount from July 2027 is worth running, particularly where deemed disposal has been a factor.
- Considering a sale of shares in your own company? The cut in CGT to 31% is worth factoring into your timing.
- Mid-way through estate planning? The higher inheritance thresholds apply from 7 October 2026
These are announced measures and several require the Finance Bill before they are settled — the
Standard Fund Threshold detail in particular is not yet published. We are glad to review how any
of the above applies to your own circumstances.
