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.

The Institute recently provided feedback to Revenue regarding the following issues identified with the treatment of employer PRSA contributions on the 2024 Form 11: Revenue guidance on completing the 2024 Form 11 on page 46 directs the taxpayer to include details of the employer PRSA contribution in line 239 of the 2024 Form 11 rendering it taxable income. This treatment is no longer applicable since 1 January 2023. Revenue’s Return Preparation Facility (RPF) and online Form 11 is aggregating the employer’s PRSA contribution with the employee’s PRSA contribution when computing the tax relief. This treatment is no longer applicable since 1 January 2023. Following our engagement, Revenue has issued updated guidance on the Income tax return form 2024 which includes  a direction in paragraph 8 for the taxpayer to leave the employer’s PRSA contribution box blank on the 2024 Form 11. This ensures that the employer’s PRSA contribution is not aggregated with the employee’s PRSA contribution when computing the tax relief. Revenue has also informed us that the Guide to Completing 2024 Pay & File Self- Assessment Return will be updated regarding these issues. In addition, the updated guidance provides information for non-resident landlords when making a claim for Residential Premises Rental Income Relief (RPRIR). Details are also included in the guide on the changes to PRSI contributions for those aged sixty-six and over, including details on how to claim an exemption for PRSI on the 2024 Form 11.

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.

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.