Chartered Accountants Ireland has reiterated its concerns about the proposed changes to agricultural property relief (APR) and business property relief (BPR), due to come into effect in April 2026, and the disproportionate impact these changes will have on Northern Ireland. The largest professional body on the island of Ireland that represents over 5,500 members in Northern Ireland has advocated extensively for a specific carve out from the rules to be included in the draft legislation to protect Northern Ireland’s economy. UK Tax Manager with Chartered Accountants Ireland, Leontia Doran said  “The proposed changes are already having massive ripple effects across the UK economy, but most notably for the farming community. These changes are disappointing and particularly damaging in Northern Ireland where family-owned businesses and farms are the heartbeat of the economy. 84% of businesses here are either family owned or managed, and they support over 325,000 jobs.  “A carve-out is needed to exempt genuine farming activity and protect family-owned businesses in NI. The Government could have included a threshold which would have continued to provide smaller farms and businesses with 100% relief if their farming and/or business assets comprise a minimum proportion of their overall estate. It is also disappointing to see that no transitional measures have been announced to protect older taxpayers. The announcement that any unused allowance will be transferable between spouses is welcome. This is the minimum that could have been done to remove the legislation’s cliff edge effect for smaller farms and businesses. More is needed to support genuine farming activity and family-owned businesses here in NI.” Personal tax thresholds The Chancellor has confirmed that the income tax and National Insurance Contributions (NICs) thresholds will remain frozen at their current level until 2031. Doran noted “The continuing freeze on personal tax thresholds is having an ever-increasing effect on people’s net after tax income and is expected to bring many more taxpayers into the higher rate tax bracket by 2030/31, a phenomenon known as "fiscal drag". This is likely to have a strong disincentive effect on decisions to take on extra work and will reduce household spending power. Coupled with the changes to employers’ NICs from April 2025, this is likely to lead to a more stagnant labour market, damaging productivity further.  “Policy measures are seriously needed to drive Northern Ireland’s productivity, the profitability of its businesses, and by extension boost both corporation and income tax takes so that we can make this a thriving place to live and work for all our citizens.” Northern Ireland Corporation Tax To unlock the economic potential of the region and its dual market access, and drive FDI, the Institute has been engaged in a campaign for a reduced rate of corporation tax which is more closely aligned with the rate across the rest of the island.    Leontia Doran concluded “At a time when the Government has been grappling with how to grow the economy, it might initially appear counter-intuitive to seek a reduction in the corporation tax rate in Northern Ireland. However, a reduction in this rate would in the longer run ultimately increase tax take by driving the creation of better jobs and incentivising business growth.  “Add to this higher value FDI and the gains for Northern Ireland would set a real benchmark for what can be achieved with ambitious tax policies. This is something our members want and which we will continue to advocate for in 2026.”  

Budget 2026 was announced by Minister for Finance, Paschal Donohoe on Tuesday to the general support of the business community and the juxtaposing ire of the opposition. The Institute’s view is that this Budget is one that balances prudence, thoughtful policy choices, and social support where it is most needed. The package announced is the highest projected public spending growth in the EU. So, it is not clear what more could be done while balancing the risk of intensifying inflationary pressures.  The Budget, of course, is as much a political balancing act as it is an Exchequer one. With that said, we are in the enviable position of running a projected Budget surplus of €10.2 billion this year and a revised projected surplus of €5.1 billion in 2026.  Total spending is projected at €117.8 billion, comprising €97.7 billion in current spending, €19.1 billion in capital investment, and a further €1 billion in unallocated resources. This is an increase of almost €11.4 billion when compared to the Budget Day estimate for 2025. The tax package for Budget 2026 is €1.3 billion, however the full year costs for the measures announced will be approximately €2.3 billion.  The notable omission from the tax package were increases to the income tax standard rate band and the universal tax credits. As I mentioned above, there is always a political dimension to policy making, and so we can reasonably expect a return to income tax changes as we move on into the election cycle. With that political nod made, putting more money by way of tax increases into people’s pockets against the backdrop of inflationary risk can be stood over from a policy perspective. It is not popular, but it is arguably prudent.  Instead, the Government has prioritised enterprise-focused tax changes. They have reinstituted the VAT9 for the hospitality sector, effective from 1 July 2026. They have shown their commitment to the Special Assignee Relief Programme and the Foreign Earnings Deduction, extending these key reliefs for a further five years to 31 December 2030. They have listened to our profession’s call for a targeted, time-limited tax-based lever to stimulate the supply of apartments by instituting VAT9 for the sale of completed apartments, effective immediately. And in a very welcome surprise, they have increased the lifetime limit for disposals of qualifying assets under the Revised Entrepreneur Relief by €500,000 to €1.5 million, effective 1 January 2026.   Clearly, there is much in Budget 2026 that I have received positively from a tax policy perspective. While a lean Budget in some respects, it is a courageous statement from a Government that is willing to make choices to steer the economy towards ever greater prosperity. The Institute, under the auspices of the CCAB-I can reflect positively on our engagement throughout the year with the Government and its institutions in supporting the tax policy agenda, having the hard conversations, and stimulating the ongoing discourse needed to arrive at reasonable choices.  For more information on Budget 2026, you can read our Special Budget Day 2026 Tax Newsletter. Gearóid O'Sullivan ACA CPA

On Wednesday, we had the opportunity to meet with Minister for Finance, Paschal Donohoe, and his officials to discuss the CCAB-I’s Pre-Budget 2026 submission. Our conversation focused on several key areas critical to Ireland’s competitiveness and business environment. We highlighted the work to date through the Tax Administration Liaison Committee and the Business Tax Stakeholder Forum on tax simplification, as well as the importance of tax certainty for businesses. We also highlighted the critical need for investment in infrastructure such as housing and childcare.   In terms of the specific tax measures we raised with the Minister, we discussed the following: Enhanced reporting requirements for employers – we highlighted the operational challenges of real-time reporting of in-scope tax free benefits and expenses, recommending periodic returns on either a monthly or quarterly basis. Special Assignee Relief Programme (SARP) – We stressed the importance of SARP in attracting global talent and called for its expansion to include SMEs and benchmarking our relief against comparable regimes in other jurisdictions. Participation Exemption for certain foreign dividends – While welcoming recent progress, we advocated for further enhancements, including completing work on a corresponding foreign branch exemption. Minister Donohoe reaffirmed the Government’s commitment to certainty and stability, which are essential for fostering a thriving business environment for both domestic and international businesses. We look forward to continued engagement to ensure Ireland remains a best-in-class location for business.