The Institute recently responded to the House of Lords Economic Affairs Finance Bill Sub-Committee inquiry into ‘Draft Finance Bill 2025-26’ which closed last week. The submission focused solely on the draft Finance Bill clauses which will restrict the scope of agricultural property relief (APR) and business property relief (BPR) from April 2026 and the disproportionate economic impact of these, especially in Northern Ireland (NI). The Institute is calling again for the Government to reframe this draft legislation ahead of April 2026, or alternatively, that the Government exclude NI from these changes. The Institute is scheduled to deliver oral evidence to this Committee in the Palace of Westminster next Monday 20 October. Our full response to this call for evidence will be published in due course in the Tax Representations section of our website, once the Committee has published its final report. The Institute’s response follows on from ongoing lobbying earlier this year when we wrote to the Exchequer Secretary to the Treasury and responded to the related consultation. You can read more about the Institute’s work in this space since the Autumn Budget 2024 announced these changes via various stories in Chartered Accountants Tax News at the following links: https://www.charteredaccountants.ie/News/institute-meets-hmrc-to-discuss-the-autumn-budget-2024, https://www.charteredaccountants.ie/News/institute-tells-government-to-reframe-its-proposed-policy-changes-on-agricultural-property-relief-and-business-property-relief, https://www.charteredaccountants.ie/News/treasury-responds-to-institute-on-inheritance-tax-reliefs, https://www.charteredaccountants.ie/News/l-day-confirms-changes-to-key-inheritance-tax-reliefs-will-proceed-as-planned, and https://www.charteredaccountants.ie/News/institute-meets-with-local-government-to-discuss-april-2026-restrictions-to-iht-reliefs.

Last week the Institute was represented at an event in London ‘Remote work across borders: Navigating the legal and regulatory maze’ which discussed the complexity of working cross-border from a wide range of angles, including tax. In attendance was the Institute’s UK Tax Manager, Leontia Doran. Leontia was accompanied by Rose Tierney, the Institute’s representative from the NI Tax Committee and Tax Committee South cross-border and remote/hybrid working sub-group which was established in September 2024. Rose, a leading and well-known expert on this issue, co-authored the 2024 LEEF report commissioned by the ESRI ‘A study into the current conditions of the island of Ireland labour market, and challenges and opportunities for effective operation for workers and businesses across the island.’ Rose’s comments at the recent Centre for Cross-Border Co-operation all island labour market conference also featured widely in the media. At the event, Rose participated in a panel discussion with other experts. This included Bill Dodwell, former Director of the Office of Tax Simplification and now a non-Executive Director on HMRC’s Board, in addition to representatives from the ATT, the CIOT and other specialists. The panel discussed a range of case studies and the issues arising from modern working practices. The aim of the event was to highlight how wide ranging and complex the issues are from a tax, legal, finance, HR, data protection, insurance, and compliance perspective. The event has made clear that there is a need for the UK Government to recognise the complexities and consider policy changes to support cross-border working in a way that both embraces modern working practices and positively impacts the UK labour market and economy. Plans are also being developed to form a UK wide working group to lobby Government, in which the Institute is aiming to be a participant. What was also clear from the event is that these issues come into even sharper focus for cross-border workers on the island of Ireland. In effect, the issues that these workers have been facing for many years are now being faced by mobile employees across the globe. The Institute’s cross-border and remote/hybrid working sub-group comprises employment tax specialists in both the UK and Ireland and was set up last year to discuss and take forward the complex issues which arise from cross-border and remote/hybrid working on the island of Ireland. As part of its initial work, three key issues identified by the working sub-group featured in a recent letter by the Institute to HMRC’s new CEO JP Marks.

In this week’s miscellaneous updates: The latest HMRC Stakeholder Digest from 2 October is available, HMRC is holding a range of webinars for employers, these include a webinar later this month looking at phones, internet and homeworking expenses, and another in December which will examine expenses and benefits for employees with more than one workplace, HMRC’s Guidelines for Compliance team has published Help with Freeports — GfC14, and The Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 has received Royal Assent. This legislation allows councils in Wales to introduce an overnight visitor levy and requires the registration of all visitor accommodation providers in Wales.

In this week’s cross-border developments and trading corner, we bring you the latest guidance updates and publications. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. HMRC has also sent more communications on the move to ICS2 and how to prepare, with documents specifically tailored to hauliers and carriers, intermediaries and agents and traders. Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Getting a customs guarantee, Check if you need a customs guarantee, Transit newsletters — HMRC updates, Section 21 — imports, Moving licensed goods into or out of Northern Ireland, Apply for a manual release of certain plant, animal and food products, Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service, and List of customs training providers.

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

The Minister announced a new exemption from the 1 percent stamp duty on the acquisition of shares in Irish registered companies with a market capitalisation of below €1 billion. In addition, several stamp duty reliefs have been extended.  Stamp duty exemption for acquisition of shares   A new exemption from the 1 percent stamp duty on acquisitions of shares in Irish registered companies is being introduced for companies a market capitalisation of below €1 billion. The companies must be admitted for trading on a regulated market, a multi-lateral trading facility, or an equivalent third country market. The exemption is set to expire on 31 December 2030. It is expected to cost €24 million per annum.  As a consequence, the existing stamp duty exemption for shares in Irish registered companies traded on the Euronext Growth Market (formerly the Enterprise Securities Market) will be removed.  Farm Consolidation Relief   Farm Consolidation Relief is being extended to 31 December 2029. The relief provides that a 1 percent rate of stamp duty is charged on the net difference between the value of land sold and land acquired as part of a Teagasc certified farm consolidation. In addition, the scope of the relief is being broadened to include non-commercial woodland/forestry. These measures will be subject to separate commencement orders due to the need to notify the EU Commission appropriately. It is estimated to cost €1.5 million per annum.  Young Trained Farmer Relief   The Young Trained Farmer relief is being extended to 31 December 2029. The relief provides a full exemption from stamp duty on the transfer of farmland, subject to certain conditions being met. The extension will be subject to a commencement order due to the need to notify the EU Commission. The extension of the relief is expected to cost €19.8 million per annum.  Residential Development Stamp Duty Refund Scheme   The Residential Development Stamp Duty Refund Scheme is being extended to 31 December 2030. The scheme provides for a partial repayment of the Stamp Duty paid on the acquisition of land where the land is subsequently developed for residential purposes subject to a number of conditions.   To improve its effectiveness the time limits that apply for acquisition to commencement and commencement to completion are being extended from 30-months to 36-months where an application for a stamp duty refund is made in respect of a large-scale residential development.  In addition, to improve efficiencies in delivery of new housing, a full Stamp Duty refund may be claimed in respect of a multi-phase development at the commencement of the first phase of that development. The extension of the relief is expected to cost €19.8 million per annum. 

There were little in the way of income tax measures announced today, however, the Minister for Finance announced a change in the USC bands to ensure that the increased minimum wage of €14.15 remains outside the higher rates of the USC. It is also important to note that all workers will be impacted by the increase of 0.1 percent employee PRSI from 1 October 2025 and another 0.15 percent is expected on 1 October 2026.   Budget 2026 has also extended the rent tax credit and mortgage interest relief that were due to expire in 2025.  The Minister also announced that there is to be a reduction in the rates of taxation that apply to certain investments from 41 percent to 38 percent which includes Exchange Traded Funds (ETFs).   USC  To ensure that the salary of a full-time worker on the minimum wage will remain outside the 3 percent rate of USC when the minimum wage increases from €13.50 to €14.15 from 1 January 2026, the ceiling of the 2 percent USC rate band will increase by €1,318 from €27,382 to €28,700.    As a result, the USC rates and bands from 1 January 2026 will be:  €0 – €12,012 - 0.5% (no change);  €12,013 – €28,700 - 2%;    €28,700 – €70,044 – 3%    €70,045+ - 8% (no change); and  Self-employed income over €100,000 - 3% surcharge (no change).  Incomes of less than €13,000 remain exempt from USC.  The estimated cost of the changes in USC is €72 million in 2026 and €76 million per annum thereafter.   Medical card holders with income not exceeding €60,000 will continue to qualify for the reduced USC rate to 31 December 2027.  Rent tax credit  The rent tax credit, which was due to expire on 31 December 2025, has been extended for a further three years to 31 December 2028. The value of the tax credit for 2026 is a maximum of €1,000 per single individual and €2,000 per jointly assessed couple. The cost of retaining this credit to the Exchequer is estimated to be €350 million per annum.  Mortgage interest relief  Mortgage interest relief has been extended on a tapered basis to 31 December 2026. The current level of relief will be maintained for the increase in interest paid in the tax year 2025 over 2022, with a maximum tax credit of €1,250 per property available, this relief can be claimed by taxpayers from 2026. A reduced level of relief will be available for the increase in interest paid in the tax year 2026 over 2022, with a maximum tax credit of €625 per property applicable, this relief can be claimed by taxpayers from 2027.  The cost of extending the relief to 31 December 2026 and maintain the current level of relief for 2025 and reduce the level of relief applicable for 2026 is estimated to be €38 million.  Vehicle benefits in kind  The temporary universal relief of €10,000 applied to the Original Market Value of a vehicle (including vans) for vehicles in Category A-D and the amendment to the lower limit of the highest mileage band is being extended to 31 December 2026. This will taper to €5,000 in 2027, €2,500 in 2028 before it is abolished from 1 January 2029.  The tables used to calculate BIK liability on employer-provided cars are being amended to incorporate a new category for vehicles with zero emissions. The new A1 category introduces reduced BIK rates for electric vehicles, with rates of 6 percent to 15 percent, depending on business mileage.  Micro-generation of electricity   The income tax relief that exempts income up to €400 per annum from the micro-generation of electricity is extended to 31 December 2028. The cost of extending the relief is estimated to cost €10 million per annum.  Taxation of Investments  The rates of taxation that apply to investments in Irish domiciled funds and life assurance policies, other than those applying to companies, personal portfolio investment undertakings and personal portfolio life assurance policies will be reduced, as will the rates that apply to equivalent offshore funds and certain foreign life assurance policies. The tax rate applicable to relevant investments is being reduced from 41 percent to 38 percent. The overall cost of the reduction is estimated to be €19 million.  The rate change will apply to Exchange Traded Funds (ETFs) including Irish domiciled ETFs.  Auto Enrolment   The Finance Bill 2025 will provide for additional amendments to the tax treatment for the Auto Enrolment (AE) Retirement Savings Scheme to  address the tax treatment of AE retirement savings on the death of the participant;  exempt AE provider schemes from investment undertaking tax; and   provide an exemption from USC for employer contributions to AE.  Manufacture of Uilleann Pipes and Irish Harps   The Income Tax disregard on up to €20,000 of a person's profits from the manufacture, maintenance and repair of sets of uilleann pipes, early Irish harps and Irish lever harps, is being extended to 31 December 2028. The relief is expected to cost €500,000 per annum.   

The main VAT changes announced relate to the introduction of 9 percent VAT rate for certain areas of the hospitality and retail sector and on the construction of new apartments. VAT on food and catering businesses and hairdressing services From 1 July 2026, the VAT rate applied to businesses in food and catering and hairdressing services is being reduced from 13.5 percent to 9 percent. It is estimated that this measure will cost €232 million in 2026 and €681 million in a full year. VAT on gas and electricity The reduced VAT rate of 9 percent on gas and electricity bills which was due to expire on 1 November 2025 will be extended until 31 December 2030. VAT on new apartments The VAT rate applied to the construction of new apartments is to be reduced from 13.5 percent to 9 percent. This reduced rate will apply from 8 October 2025 and will last until 31 December 2030. In our Pre-Budget submission, we have called for a targeted, time limited measure to address market failures in the delivery of apartments. It is hoped that the VAT reduction will address this market need effectively and efficiently. VAT Modernisation and electronic invoicing The Minister announced the commencement of a phased implementation of domestic electronic invoicing for business-to-business (B2B) transactions. This implementation supports the EU approved VAT in the Digital Age (ViDA) initiative which aims to modernise the EU’s VAT system.  Further details on this initiative will be outlined in a paper to be published by Revenue tomorrow.

We set out below the remaining measures on excise measure, in addition to changes to the Vehicles Registration Tax and Carbon Tax. Carbon tax rate increase for propellant and other fuels In line with the trajectory set out in the Finance Act 2020, the carbon tax rate per tonne of CO₂ emitted for propellant fuels will increase from €63.50 to €71, effective 8 October 2025. This revised rate will be extended to all other fuels from 1 May 2026, continuing the Government’s commitment to climate action and emissions reduction through fiscal measures. The increase forms part of Ireland’s broader environmental taxation strategy aimed at incentivising lower-carbon energy use across sectors. Extension of Vehicle Registration Tax relief for electric vehicles The Vehicle Registration Tax (VRT) relief for electric vehicles, originally scheduled to expire on 31 December 2025, has been extended by one year and will now remain in place until 31 December 2026. This extension encourages continued uptake of electric vehicles in line with Ireland’s climate and transport decarbonisation goals. Excise Duty increase on Tobacco Products Budget 2026 provides for an increase in excise duty on tobacco products. The duty on a pack of 20 cigarettes will rise by €0.50 (inclusive of VAT). Pro rata increases will also apply across other tobacco products, in line with the Government’s public health objectives and ongoing commitment to reducing tobacco consumption.

This year, as in previous years, a number of key reliefs for the agricultural sector have been extended. We outline these below in further detail. Accelerated Capital Allowances scheme for slurry storage The Accelerated Capital Allowances Scheme for the construction of slurry storage facilities by farmers has been extended for a further four years, now applying until 31 December 2029. Under this measure, qualifying capital expenditure on slurry storage buildings and associated equipment may be written off at a rate of 50 percent per annum over two years, compared to the standard write-off periods of seven years for farm buildings and eight years for plant and machinery. This accelerated relief continues to support investment in environmentally sustainable agricultural infrastructure by improving cash flow and reducing the effective tax burden on capital investment. Farm Restructuring Relief extended and expanded Finance Bill 2025 will provide for the extension of Farm Restructuring Relief to 31 December 2029, continuing support for farmers undertaking land consolidation and restructuring. In addition to the extension, the scope of the relief is being broadened to include: Commercial forestry land, and Non-commercial woodland/forestry, reflecting a more inclusive approach to land use within the agricultural sector. These changes will be subject to separate commencement orders, pending the necessary notification and approval from the EU Commission under State Aid rules. Further operational details will be confirmed in due course. Farm Consolidation Relief extended and scope expanded You can read a full update on the announcements under our Stamp Duty section here. Young Trained Farmer Stamp Duty Relief extended You can read a full update on the announcements under our Stamp Duty section here. Farmer’s Flat Rate VAT compensation revised for 2026 The Farmer’s Flat Rate Payment, which compensates unregistered farmers for VAT incurred on purchases, has been revised for 2026. The new rate will be 4.5 percent, down from 5.1 percent in 2025. This adjustment reflects the average VAT costs incurred by farmers, calculated using macroeconomic data compiled by the Central Statistics Office (CSO) and Revenue over the preceding three years. The Flat Rate scheme continues to provide simplified VAT relief for farmers who choose not to register for VAT, helping to offset input costs without the administrative burden of full VAT compliance.

Budget 2026 includes enhancements to the Research and Development (R&D) tax credit and to various other reliefs including the Key Employee Engagement Programme (KEEP), the Special Assignee Relief Programme (SARP) and the Foreign Earnings Deduction (FED).   Improvements to the dividend participation exemption were also announced including an extension of the geographical scope of the exemption. The Minister also announced that a public consultation on withholding tax will be launched shortly.  R&D tax credit  The Minister announced several important updates for the R&D tax credit in Ireland following the feedback received through the public consultation earlier this year (you can read our response here) and acknowledging the importance of the relief in driving competitiveness in Ireland. The three main enhancements are as follows: The rate of the tax credit has been increased from 30 percent to 35 percent,   An increase in the first-year payment threshold from €75,000 to €87,500 aimed at supporting smaller R&D projects, and An administrative simplification measure was also announced which will allow 100 percent of an R&D employee’s emoluments as qualifying costs where at least 95 percent of time is spent on qualifying R&D activities. The Minister also announced the forthcoming publication of an R&D Compass, which will outline the strategic direction for future developments in research, development, and innovation supports. The R&D compass will also consider changes to the R&D tax credit with respect to the definitions of outsourcing and qualifying expenditure. Key Employee Engagement Programme The Key Employee Engagement Programme (KEEP) has been extended to 31 December 2028. This extension is subject to approval by the European Commission. Special Assignee Relief Programme The Special Assignee Relief Programme (SARP) is being extended for five years, to 31 December 2030. From 1 January 2026, an annualised salary of €125,000 or above will be required to qualify for the relief. New entrants to the scheme from 2026 onwards may benefit from an income tax exemption on 30 percent of relevant annual employment income between €125,000 and €1 million. This change will not apply to existing claimants who continue to avail of SARP in 2026 and further years. Simplification of certain relevant administrative requirements are expected to be announced in Finance Bill 2025. Foreign Earnings Deduction The Foreign Earnings Deduction (FED) will be extended for a further five years, up to 31 December 2030. In addition, from 1 January 2026, the scheme will be enhanced by increasing the cap on qualifying employment income for Income Tax relief from €35,000 to €50,000. The scope of the relief is also to be broadened to include qualifying workdays spent in the Philippines and Turkey. Changes will also be introduced in Finance Bill 2025 to streamline certain administrative requirements. Participation exemption for certain foreign dividends The participation exemption for foreign dividends, introduced in the Finance Act 2024, marked a significant enhancement to Ireland’s tax framework. The Minister announced that several changes to the exemption will be provided for in Finance Bill 2025 which include: Broadening the geographic scope to include qualifying dividends received from jurisdictions that apply a non-refundable dividend withholding tax. The period for which companies must have been resident in a jurisdiction within the geographic scope of the relief before paying a dividend will be reduced from five years to three years. Clarification was provided that the acquisition of a shareholding is not considered to be an acquisition of business assets for the purposes of the participation exemption. The Institute welcomes these changes as we had previously raised these recommendations in a letter which you can read here. Further details will be set out in Finance Bill 2025. Film Tax Credit The Film Tax Credit is being enhanced to introduce a new 40 percent rate for productions with a minimum eligible expenditure of €1 million on relevant Visual Effects work. The rate will apply on qualifying expenditure up to a maximum of €10 million per production. The changes are subject to approval by the EU. Digital Games Tax Credit The Digital Games Tax Credit is being extended by six years to 31 December 2031. In addition, the credit is being enhanced to allow for claims in respect of Post-Release Content work, subject to certain conditions being satisfied. The changes are subject to approval by the EU. Accelerated Capital Allowances for Energy Efficient Equipment The Accelerated Capital Allowances Scheme for Energy Efficient Equipment which provides for an accelerated deduction of 100 percent of the asset cost in year one for qualifying equipment is being extended to 31 December 2030. Accelerated Capital Allowances for Gas Vehicles and Refuelling Equipment The Accelerated Capital Allowances Scheme for gas vehicles and refuelling equipment is being extended to 31 December 2030. This scheme provides a tax incentive for companies and unincorporated business that invest in vehicles which run on compressed natural gas, liquefied natural gas, biogas or hydrogen, and in related refuelling equipment. Capital Allowances for Intangible Assets The Minister indicated that amendments are being made to the intellectual property capital allowances legislation regarding how balancing allowances, which arise on certain events such as the disposal or transfer of the asset, can be used. A Financial Resolution will be brought forward on the night of Budget 2026 to provide for these amendments with immediate effect and will be followed by legislation in Finance Bill 2025. Capital Gains Tax Revised Entrepreneur Relief The lifetime limit on which the Revised Entrepreneur Relief can be claimed will be increased to €1.5 million from 1 January 2026. The relief now provides for a reduced rate of CGT of 10 percent on gains of up to €1.5 million, over a lifetime, arising from the disposal of qualifying business assets. Bank Levy The Bank Levy is being extended for a further year and will apply in 2026. Withholding Taxes As part of his Budget speech the Minister announced that a public consultation on withholding tax will be launched soon.

The need for a whole-of-government approach to tackle the ongoing housing crisis is well accepted by now. The Institute has called for tax-based levers to address the ongoing market failure in delivering affordable housing at scale and at speed. Today’s Budget includes some important changes to key reliefs as well as new measures which, if properly implemented and legislated, should have a positive impact on the construction of buildings and utilisation of land in Ireland. VAT on New Apartments You can read a full update on the announcements under our VAT section here. Residential Development Stamp Duty Refund Scheme You can read a full update on the announcements under our Stamp Duty section here. Deduction for retrofitting by landlords The tax relief available to landlords for qualifying retrofitting expenditure on rented residential properties has been extended by a further three years, now applying until 31 December 2028. In addition to the extension, two key enhancements have been introduced: Timing of relief: The deduction may now be claimed in respect of the year in which the expenditure is incurred, rather than being deferred. Scope of relief: The maximum number of properties for which a landlord may claim the relief has increased from two to three. These changes aim to further incentivise energy efficient improvements in the private rental sector. Corporation tax exemption for cost rental income The new corporation tax exemption for cost rental income will apply to rental profits derived from residential properties designated as Cost Rental to accelerate the delivery of affordable housing. The exemption will apply from 8 October 2025. Cost Rental is a tenure model established under Part 3 of the Affordable Housing Act 2021, aimed at supporting moderate-income households who fall outside the eligibility criteria for social housing. Strict eligibility criteria and operational rules apply to ensure transparency and alignment with the scheme’s objectives. Enhanced corporation tax deduction for apartment construction costs The enhanced corporation tax deduction allows developers to claim 125 percent of qualifying construction costs, subject to a cap of €50,000 in additional deductible costs per apartment unit. The measure is aimed at improving the financial viability of apartment development projects by bridging the gap between development costs and achievable market prices. Key features of the measure include: Deduction rate: Qualifying construction costs will attract a deduction of 125 percent, capped at an additional €50,000 per unit, equating to a maximum tax benefit of €6,250 per apartment. Ownership requirement: The developer must be the beneficial owner of the property at the time of completion. Project size: Relief is available for developments comprising 10 or more apartments. Eligible projects: Applies to both new-build and conversion projects, including changes of use (e.g. office or retail to residential). Timing: Relief is available for projects where a Commencement Notice is submitted between 8 October 2025 and 31 December 2030. Claim point: The deduction becomes claimable upon completion, evidenced by the signing of the Certificate of Compliance. Living City Initiative A number of enhancements to the Living City Initiative were announced today. The initiative supports the regeneration of older housing and commercial stock in designated Special Regeneration Areas. The key changes announced include: Extension of the initiative to 31 December 2030. Expansion of eligibility: The qualifying building age for owner-occupier and rented residential relief is increased from pre-1915 to pre-1975. New relief category: A tax deduction will now be available for the conversion of commercial properties into residential units, including ‘over the shop’ premises. Notably, no building age restriction will apply to this category. Increased relief cap for enterprises: Where works are carried out by businesses, the maximum relief available will rise from €200,000 to €300,000, in line with EU State Aid thresholds. Greater flexibility in claiming the relief will be introduced, with further operational details to be outlined in Finance Bill 2025. In addition, the scheme will be extended to five regional centres identified under the National Planning Framework: Athlone, Drogheda, Dundalk, Letterkenny, and Sligo. The process of mapping Special Regeneration Areas in these locations will commence shortly, in collaboration with the relevant Local Authorities. Residential Zoned Land Tax (RZLT) Budget 2026 introduces further refinements to the RZLT framework, aimed at improving fairness and administrative clarity for landowners. Key updates include: Additional submission window: Landowners will be given a further opportunity to request a change in zoning for land included on the revised 2026 RZLT map. In certain cases, successful submissions may result in an exemption from RZLT for 2026. Exemption during planning appeals: A new exemption will apply where An Coimisiún Pleanála proceedings are initiated by a third party in relation to a grant of planning permission for a relevant site. RZLT will not apply while such proceedings are pending. Legislative amendments: Consequential changes arising from the Planning and Development Act 2024, along with technical amendments to ensure the RZLT legislation operates as intended, will be included in Finance Bill 2025. These measures aim to support landowners navigating zoning and planning complexities, while maintaining the policy objective of encouraging the activation of zoned residential land.