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.”  

New research from the ESRI indicates that, at the household level, measures introduced in Budget 2026 are expected to lead to modest income reductions next year, averaging around 2 percent of disposable household income. In a press release issued last week, the ESRI noted that the fiscal stance as outlined in the current and recent budgets is arguably too loose, and the reliance on unpredictable corporation tax receipts is a vulnerability.  The fiscal stance refers to the balance between government spending and taxation, comparing the amount which the government injects into the economy through expenditure to the amount which it withdraws through taxes.

The Department of Finance published additional reports on Budget Day 2026 providing a review of various taxation measures. These included a Funds Review Implementation Plan, a report on the Use of Carbon Tax Funds, a review of the Foreign Earnings Deduction and a review of the Special Assignee Relief Programme.

As part of the Budget 2026 publications, the Department of Finance has published the first review of the Rent Tax Credit. Introduced in the Finance Act 2022, the Rent Tax Credit (RTC) has been reviewed using administrative data from its initial years of operation, 2022 and 2023. The review presents early findings and draws preliminary conclusions on the credit’s effectiveness and value for money. Some of the main findings from the review include: The most represented cohorts among RTC claimants are young adults between 21 and 40 years old, residents in Dublin, and single persons, 7 per cent of taxpayer units claiming the RTC had an income over than €100,000 in 2022, and The estimated cost for 2024 and 2025 of the credit is approximately €350 million in each year, which would make the RTC one of the top ten costing tax expenditures for 2024.

Following an announcement made on Budget Day, the Department of Finance has published an Action Plan for the reform of Ireland’s Taxation Regime for Interest. The Action Plan was designed considering the feedback received during the comprehensive public consultation on the tax treatment of interest in Ireland which was launched in September 2024. The responses to the public consultation outlined the need for a fundamental overhaul of the existing framework governing the taxation and deductibility of interest. The Action Plan outlines a phased approach for implementing reforms aimed at creating a more streamlined system that enhances Ireland’s competitiveness while safeguarding the tax base. A feedback statement will be issued in November, which will focus on the underlying framework for the taxation and deductibility of interest in Ireland. The responses will inform legislative changes in Finance Bill 2026 and further reform areas will be addressed in subsequent phases.

In case you missed it last week, you can find our full coverage of Budget 2026 in our Special Budget 2026 Tax Newsletter which issued last week following the announcement of this year’s package. You can also find more information on all-things Budget in the Institute’s Budget 2026 Hub.

During his Budget 2026 address, Minister Donohoe announced that Revenue will begin a gradual introduction of electronic invoicing (e-Invoicing) and real time reporting for businesses trading cross-border with other EU businesses. Following this announcement, Revenue has published a paper outlining details of its preparations for implementing the European Union's VAT in the Digital Age (ViDA) requirements. From July 2030, businesses that trade cross border must adopt these new e-Invoicing systems to retain access to zero percent VAT arrangements that support single market trading. Revenue will roll out the adoption of the directive in phases, starting in November 2028 with large VAT-registered corporates being required to implement mandatory e-Invoicing and real time reporting for domestic business-to-business (B2B) transactions. From November 2029, under phase two, mandatory e-Invoicing and real-time reporting for domestic B2B transactions will be extended to all VAT-registered businesses who engage in cross-border EU B2B trading. Finally, under phase three, from July 2030, mandatory e-Invoicing and real-time reporting will apply to all cross-border EU B2B transactions across all member states.     From November 2028, all businesses must have the capability to receive e-Invoices in the required structured format, even if they are not yet mandated to issue them under the phased rollout. Under ViDA, suppliers must issue e-Invoices within ten days of the transaction and digitally report specified data to their national tax authority. The new system will eliminate the reporting requirement of the monthly VIES returns, further reducing the administrative burden for businesses. Revenue has confirmed that all stakeholders will receive support throughout the transition, with additional opportunities for engagement as the reforms evolve, undergo testing, and are implemented. The Institute, under the auspices of CCAB-I had responded to the public consultation on Modernising Ireland's Administration of VAT – Real-time Digital Reporting and Electronic Invoicing in January 2024 and continues to engage with Revenue on the matter via the TALC forum.

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

  Several measures were included in Budget 2026 to accelerate Ireland’s energy transition and underpin Ireland’s journey to a net-zero future. Residential buildings were arguably the greatest beneficiaries of the almost €1.1 billion allocated to the Department of Climate, Energy and the Environment. Funding of €558 million – an increase of €89 million on last year’s corresponding allocation – was allocated to Sustainable Energy Authority of Ireland (SEAI) residential and community energy upgrades, including the Solar PV (photovoltaic) Scheme. Public sector building retrofits will also benefit from continued investment, with €21 million allocated for public sector retrofitting for 2026 under the first phase of ICNF (Infrastructure, Climate and Nature Fund). This purpose of this fund is to support State expenditure where there is a significant deterioration in the economic or fiscal position of the State, and in the years 2026 to 2030, on designated environmental projects. The Finance Act 2020 legislated for annual increases in carbon tax to reach €100 per tonne of CO2 emitted by 2030. This year’s increase – announced yesterday in Budget 2026 – brings the tax to €71 per tonne of CO2 emitted. The tax is applied to auto fuels with effect from the 8 October 2025, and to all other fuels from the 1 May 2026. The additional revenue arising from the carbon tax increase is estimated at €121 million in 2026 and the full year additional yield is estimated at €157 million. Commenting, Susan Rossney, Institute Sustainability Advocacy Manager, said “Chartered Accountants Ireland has consistently advocated for taxpayers to be shown a direct link between the carbon tax collected and how they benefit. Therefore, the decision to ring-fence the revenue expected from carbon tax in 2026 to spend on social welfare measures and other measures to prevent fuel poverty, and to ensure a just transition, is welcome. However, more detail will be needed on the distribution of funds to Government’s planned projects, particularly the €209 million which has been allocated to accelerate climate action and prepare Ireland for the impacts of a changing climate, to understand whether the risks from climate change and biodiversity loss have been properly accounted for. This is especially important given the warning from the Irish Fiscal Advisory Council that failing to meet EU climate targets could cost Ireland between €8 and €26 billion by 2030.” The measures funded, relevant Departments, and the allocation for each is outlined in Budget 2026 – The Use of Carbon Tax Funds. Budget 2026 also includes investment in offshore renewable energy site data surveying to assist in the de-risking of future projects. €30 million has been allocated for the Landfill Remediation Programme, described by Department of the Climate, Energy and the Environment as “support[ing] Ireland in transitioning to a Circular Economy, whilst protecting our natural resources, environment and health on the national journey to net zero by 2050”. The extension to 2030 of the Accelerated Capital Allowances scheme for energy-efficient equipment also means that companies investing in, among other things, electric cars for their fleets will be able to write 100 percent of the asset value of those vehicles off against tax in the first year of ownership. Other EV measures include the extension to 2026 of the €5,000 VRT relief for EVs, and the creation of a new vehicle category for zero-emission cars only, where the lowest BIK rates will apply.  Connected to this is the extension of the 9 per cent rate of VAT on gas and electricity bills until the 31 December 2030 which will be welcomed by EV drivers keen to avoid an increase in EV charging prices. The extension to 2028 of the Income Tax disregard of €400 for income received by households who sell electricity from micro-generation back to the grid is to be welcomed, includes electricity sold back to the grid from EVs enabled with Vehicle-to-Grid or V2G technology. To help reinforce the electricity grid, ESB and Eirgrid will receive €3.5 billion.