The guidance on the income tax treatment of married persons and civil partners has been recently updated by Revenue providing additional information including  details on the three bases of assessment for married couples and civil partners. The relevant updates to the document are: The increase in the standard rate tax band and tax credits, as provided for by Finance Act 2024 and effective from 1 January 2025, with the examples throughout the guidance updated accordingly.   Paragraph 1.1 has been inserted to provide a tabular style summary of the three bases of assessment available to married couples and civil partners. Paragraph 4.2 provides additional guidance on the application of joint assessment and the nomination of the assessable spouse or civil partner. Paragraph 5.2 includes further clarifications on cases where both spouses or civil partners are non-resident, and one spouse or civil partner has income chargeable to tax in Ireland. A new example has been included to outline the tax treatment of a married couple who separate.

The Department of Finance and the Department of Public Expenditure and Reform have published the Fiscal Monitor for November 2025 confirming an Exchequer surplus of €10.4 billion to the end of November. This compares to a surplus of €13.8 billion recorded for the same period last year (what was impacted by receipts arising from the Court of Justice of the European Union (CJEU) ruling in the Apple State Aid case). When these receipts are excluded from total receipts in 2024 and 2025, an underlying surplus of €7.1 billion was recorded which represents an improvement of €2.8 billion on the same period last year. Tax receipts collected to the end of November were €98.7 billion, which was €0.4 billion lower than the same period in 2024. Excluding the once off receipts from the Court of Justice of the European Union (CJEU) judgement in the Apple State Aid case, total receipts amounted to €97.0 billion, an increase of €7.3 billion on the corresponding period in 2024. Income tax receipts for the month of November were €5.1 billion which was €0.4 billion ahead of receipts collected in November 2024. On a year-to-date basis, receipts to the end of November of €33.7 billion were up by €1.5 billion (4.6 per cent), when compared to end of November 2024. Corporation tax receipts of €10.0 billion were collected in November, which is down by €3.7 billion on the same month in 2024. On a cumulative basis, receipts of €31.1 billion were down by €3.9 billion on the same period last year. When the once-off CJEU receipts are excluded, cumulative corporation tax receipts to November 2025 amounted to €29.4 billion, up on the same period last year by €3.8 billion. VAT receipts collected in the month were €3.4 billion with cumulative receipts recorded of €22.5 billion to the end of November 2025 which were ahead by €1.1 billion on end of November last year. Commenting on the figures, Tánaiste and Minister for Finance, Simon Harris said: “Today’s figures are in line with the revised projections for tax revenue that we set out in Budget 2026: strong income tax and VAT returns reflect the strength and resilience of our economy, while corporation tax remains at an elevated level. Government is committed to making sure our spending commitments are sustainable and built on solid foundations. We will continue to run budget surpluses and continue to invest in the Future Ireland Fund and the Infrastructure, Climate and Nature Fund”

The announcements in this area range from changes to VAT groups to a new charitable VAT relief which will commence from April 2026. VAT groups The Government has removed the requirement to consider Revenue and Customs Brief 18 (2015): VAT grouping rules and the Skandia judgement when making cross-border transactions between members of a VAT group. According to HMRC, this returns the UK to its previous position of operating ‘unmodified whole-entity VAT grouping’. This measure took effect from 26 November 2025. HMRC has therefore published Revenue and Customs Brief 7 (2025): Revised VAT grouping rules and the Skandia judgment as a result which sets out the updated position in detail. Under the new ‘whole-entity VAT grouping’ principle, HMRC now considers an overseas branch of a UK VAT group member to be part of the UK VAT group, even if that branch is in a separate VAT group in an EU member state. As a result, such transactions are now disregarded for UK VAT purposes. Charity tax relief From 1 April 2026 a new VAT relief will be introduced for business donations of goods to charity for distribution to those in need or use in the delivery of their charitable services. The relief will remove the requirement for businesses to account for VAT on eligible goods that are donated for onward distribution or use in a charity or eligible organisation’s services. Value limits will apply to donated items to safeguard against misuse, with higher limits available for listed goods. More information is available in a policy paper. Private hire vehicle services From 2 January 2026 suppliers of private hire vehicle and taxi services will be excluded from the scope of the Tour Operators Margin Scheme, except where these are supplied in conjunction with certain other travel services. Deposit return schemes (DRS) In an effort to simplify administration of the DRS, the Government will remove the requirement for individual producers to account for VAT on unreturned deposits. Instead, this will be done by the Deposit Management Organisation. Land intended for social housing A consultation is to be launched in early 2026 on the reform of VAT rules to incentivise the development of land intended for social housing. Landfill tax From 1 April 2026 the standard rate of landfill tax will increase by RPI inflation and the lower rate will increase by the cash amount of the increase in the standard rate. However, the Government has decided not to proceed with transitioning to a single rate of this tax by 2030 and the exemption for quarries with disposal permits will be retained. This was confirmed in the Government’s consultation response published on Budget day. Plastic packaging tax (PPT) To incentivise businesses to use recycled instead of new plastic in packaging, the PPT rate for 2026/27 will increase in line with Consumer Price Index (CPI) inflation. A consultation will also be launched in early 2026 on the introduction of mandatory certification for mechanically recycled plastic packaging for businesses to claim an exemption from the PPT. Finance Bill 2025/26 also provides for a mass balance approach to be used to attribute chemically recycled plastic for the purposes of the PPT from 1 April 2027. This draft legislation also removes pre-consumer waste as a source of recycled content from the same date. Soft drinks industry levy (SDIL) From 1 January 2028 the threshold at which the SDIL applies will be reduced from 5g to 4.5g sugar per 100ml and the exemptions for milk-based and milk substitute drinks with added sugar will be removed. Open cup beverages, such as those bought in cafes, will remain unaffected. The Government also published a summary of responses to its consultation on these reforms. From 1 April 2026 the SDIL will also increase in line with CPI inflation plus one fifth of the ‘catch-up’ increment to reflect the 27 percent CPI increase between 2018 and 2024.  

You may have read on Friday that it has been brought to our attention that the recently launched MyFutureFund employer registration portal may potentially allow individuals with restricted ROS access to view sensitive payroll-related information. This presents significant privacy concerns under the GDPR and requires immediate investigation. Last week, we requested clarity from the Department of Social Protection (DSP) and raised a formal query regarding access controls. At present, we are still awaiting a response, although we understand that the DSP is looking into this. Members are advised to exercise caution when using the portal and report any anomalies. We will keep members informed on this issue.

Readers are reminded that next Monday, 15 December 2025, is the payment deadline for capital gains tax (CGT) liabilities arising in the period 1 January to 30 November 2025. Revenue’s CGT webpage details how to register for CGT via MyAccount. CGT payments can be made online using a debit/credit card or a one-off single debit instruction.

The Department of Finance and Revenue have together launched a public consultation seeking stakeholders views on an eWHT (electronic withholding tax) system in Ireland. eWHT proposes a move toward real-time taxation for self-employed taxpayers subject to withholding tax (WHT). The deadline to respond to the eWHT survey is 5.00pm on Friday 30 January 2026. As part of the public consultation, the stakeholders’ views are sought on the proposed modernisation of Professional Services Withholding Tax (PSWT) and Relevant Contracts Tax (RCT), and the expansion of a WHT mechanism to the platform economy. Feedback is also requested on the introduction of personalised deduction rates for a new modernised and expanded WHT regime for self-employed workers. Taxpayers who will be impacted by the current proposals include: Accountable persons who currently operate PSWT, Providers of professional services subject to PSWT, RCT Principal contractors and subcontractors in the construction, forestry and meat-processing sectors, Platform operators, and Platform workers. In the accompanying press release, Revenue provided details of the eWHT Consultation Hub which contains general information on the background, objectives, and features of the modernisation proposal. The hub also provides details of the impact on both new and existing stakeholders, as well as outlining how eWHT will operate for them.

A new excise duty on electric vehicles (EVs) from 2028, a further freeze on fuel duty until August 2026 and the annual increases in tobacco duty also featured on Budget day. Fuel duty The temporary 5p fuel duty cut has been extended for a further five months from 31 March 2026 to 31 August 2026. Thereafter, the cut is being reversed with three increases in stages as follows: 1p on 1 September 2026, 2p on 1 December 2026, and 2p on 1 March 2027. The planned inflationary increase for 2026/27 will not take place. However fuel duty will begin to increase with inflation again in accordance with the Retail Prices Index (RPI) starting from April 2027. EVs From April 2028 a new EV excise duty (eVED), a new mileage charge for electric and plugin hybrid cars, will take effect. Drivers will pay for their mileage on a per-mile basis alongside their existing vehicle excise duty. EVs will pay half the equivalent fuel duty rate for petrol and diesel cars, and plug-in hybrid cars will pay a reduced rate equivalent to half of the electric car rate. This will be a self-reported per-mile levy. Other electric vehicle types, such as vans, buses, motorcycles, coaches and HGVs, will be out of scope of the eVED when it is introduced as the transition to electric for these vehicle types is less advanced than for cars. At the same time, the Government also announced specific measures to help consumers choose EVs and to support effective and accessible charging infrastructure to support the transition to EVs. A consultation was launched on Budget Day which provides further detail on how the eVED will work and which also seeks views on its implementation. The consultation will remain open until 18 March 2026. According to the Budget Red Book, when the eVED takes effect, an average EV driver will pay around £240 per year or £20 per month. Tobacco duty Duty rates on all tobacco products increased by RPI inflation plus 2 percentage points from 6pm on 26 November 2025. A one-off increase of £2.20 per 100 cigarettes or 50g of other tobacco products and the annual uprating of tobacco duty by RPI plus 2 percentage points next year will take effect from 1 October 2026. Air passenger duty (APD) rates All rates of APD will increase in line with the RPI from 1 April 2027 and will be rounded to the nearest penny. In last Autumn’s Budget the Government announced plans to extend the higher APD rate to private jets over 5.7 tonnes. A summary of consultation responses to the associated consultation has been published which confirms that this will be legislated in Finance Bill 2026 to take effect from 1 April 2027. Alcohol duty All alcohol duty rates will increase in line with RPI inflation from 1 February 2026. The small producer relief discounts will also increase from the same date. Vaping duty The previously announced vaping products duty will commence as planned from 1 October 2026 at a flat rate of £2.20 per 10ml. It will apply to all vaping liquid and will work alongside the vaping duty stamps scheme to drive compliance. £10 million of funding has also been redirected from HMRC to the Border Force in 2026/27 with the aim of enhancing operational information gathering capabilities ahead of the introduction of this new duty and to support enforcement at the border. Gambling duty Following consultation, the Government has decided not to proceed with a single tax on remote betting and gaming. Instead, duties on remote gambling will be increased with different rates applying to remote betting and remote gaming. Remote gaming duty will increase from 21 percent to 40 percent from 1 April 2026. A new remote betting rate will be introduced at 25 percent from 1 April 2027 as part of the general betting duty. This new rate will not apply to self-service betting terminals, spread betting, or pool betting. Remote bets on horseracing will be excluded from these changes and will remain taxed at 15 percent. Bingo duty will be abolished from 1 April 2026. Details of the changes are set out in a policy paper. Gaming duty bands The gross gaming yield bandings for gaming duty will be frozen from 1 April 2026 until 31 March 2027. Duty free allowances A duty free allowance of 50ml per passenger for vaping products will be introduced in October 2026, alongside moving cider and sparkling wine into the beer and still wine duty free categories, respectively. Vehicle excise duty (VED) Search and rescue vehicles will be exempt from VED; work will begin with stakeholders to design and implement this exemption from April 2027. The VED rates for cars, vans, HGVs and motorcycles will increase in line with RPI inflation from 1 April 2026. The HGV levy will also increase in line with RPI inflation from the same date. The VED expensive car supplement threshold will increase from £40,000 to £50,000 for zero-emission vehicles only. This change will take effect from 1 April 2026 and will apply to zero-emission EVs registered from 1 April 2025 onwards.

Last week the Institute’s tax team and a representative from the NI Tax Committee met with HMRC to feedback our initial reaction to the 2025 Autumn Budget. The Institute highlighted a range of concerns, including our disappointment that the transferability of the £1 million allowance for agricultural property relief and business property relief, whilst welcome, was the minimum attempt made to protect the succession plans of genuine farming activity, family-owned businesses, and older farmers. Members are welcome to feedback their concerns and queries on the Budget’s tax announcements at any time by email to tax@charteredaccountants.ie. Leontia Doran, UK Tax Manager, outlined to HMRC that the early announcement of the soft landing for Making Tax Digital (MTD) for income tax quarterly filings in 2026/27, as one of our ongoing recommendations, was a welcome announcement given the scale of the change that MTD for income tax represents. The Institute also highlighted that the confirmation on Budget Day by the Government that it will not regulate tax advisers, another Institute lobbying win, provided certainty to the regulated tax agent community, and particularly our members, that they would not be facing dual regulation in future. Other matters raised included the roadmap for e-invoicing and how HMRC plans to engage on this ahead of its publication at the next Autumn Budget given our concerns about this for smaller businesses, earlier Self-Assessment payments and the forthcoming consultation on close companies reporting certain  transactions to HMRC. The Institute will continue to engage with HMRC on the Budget’s outcomes and will be discussing its impact on Northern Ireland with local Government in the coming weeks and months. For all things UK Budget related, visit our UK Autumn Budget 2025 page for useful links, news stories, guidance and analysis.  

The OECD has announced that 26 countries and jurisdictions, including Ireland and the United Kingdom, intend to implement the new international framework for the automatic exchange of information regarding offshore property. Tax administrations will have access to offshore real estate information, including ownership details, property value, transaction history and rental income.

The OECD has published two reports prepared by the Global Forum on Transparency and Exchange of Information for Tax Purposes. The reports contain the 2025 peer reviews of the implementation of the international standards of Exchange of Information on Request (EOIR) and the Automatic Exchange of Information (AEOI).

The EU Parliament’s Subcommittee on Tax Matters will host a public hearing on Thursday 11 December on the taxation of ultra-high-net-worth individuals. The hearing will review the use of loopholes and tax planning strategies to minimise tax liabilities, assess transparency measures and consider possibilities for tax authorities to enhance compliance enforcement and cross-border cooperation.

The European Financial Reporting Advisory Group (EFRAG) has published the eagerly awaited draft simplified European Sustainability Reporting Standards (ESRS), along with its technical advice to the European Commission. In its press release, EFRAG have highlighted many of the simplifications implemented which it hopes will help reporting companies integrate sustainability reporting into their business. The simplifications which EFRAG have noted include:  Standards which are “shorter, clearer, easier to understand and to implement” A 61% reduction of datapoints that are required if material Deletion of all voluntary disclosures Substantial reliefs, proportionality mechanisms and ad hoc phasing-in for challenging disclosures Principles based standards for narrative disclosures An emphasis on fair presentation A simplified materiality assessment Measures to reduce pressure in relation to data collection in the value chain Enhanced interoperability with the ISSB standards, with common disclosures preserved where possible    The European Commission will now prepare a Delegated Act to revise the first set of ESRS’s based on EFRAG’s technical advice. Also, on 4 December EFRAG launched the ESRS Knowledge Hub, an interactive online platform designed to support companies, practitioners and stakeholders in navigating the European Sustainability Reporting Standards (ESRS) and broader sustainability reporting materials developed by EFRAG. First time users can click the link to go to the landing page and register to log -in.