New guidance on investment limited partnerships published

Revenue has published updated guidance on investment limited partnerships (ILPs), reflecting the changes introduced by Finance Act 2025. Among the changes is an important update to the compliance obligations of ILPs going forward. Previously, ILPs needed to submit both the Form 1 (Firms) and the Form ILP1, despite both forms requiring largely similar information. Now, for the 2026 year of assessment and going forward, ILPs will only be required to submit a single return under section 739J(3B) TCA 1997.

The unnecessary compliance burden did not make sense to investors familiar with comparable regimes in other jurisdictions. In 2025, the Institute made representations on behalf of members seeking that the compliance obligations for ILPs would be streamlined such that ILPs would only be required to submit a single information return. We are pleased to see this amendment now reflected in guidance.

For completeness. the new guidance is updated as follows:

• the tax treatment of ILP’s under section 739J of the Taxes Consolidation Act (TCA) 1997,
• the dividend withholding tax treatment of ILPs following the passing of Finance Act 2025,
• the withholding tax treatment of interest payments made to ILPs, and
• details relevant to ILPs respect to the definition of "collective investment scheme" in Chapter 10A of Part 35C TCA 1997.