In this article, Sinéad Munnelly, explores why organisational health is becoming a leadership priority in professional services firms. If you asked most leaders of professional services firms about the biggest risks they face, the answers would be familiar: Increasing regulation Technology disruption Talent shortages Client expectations. These are all legitimate concerns, of course, but there is another risk that rarely appears on leaders’ agendas: Whether the firm is structurally healthy and robust to meet the demands made upon it. Imagine you are standing before your firm at a town hall meeting: partners, managers, trainees and support teams, the people whose judgement, professionalism and integrity underpin the value and reputation of the firm every day. Traditionally, this is where leaders would speak about opportunity, strategy and growth, but this time you ask a different question: Is our firm designed to sustain the level of complexity we now operate in? The environment in which professional services firms operate has changed profoundly in recent years. Artificial intelligence (AI) is being embedded in audit and advisory workflows. Reporting expectations continue to intensify. Clients expect faster insight and broader advice. Teams are increasingly multidisciplinary. In some parts of the profession, new ownership models have introduced additional commercial oversight. None of these developments is inherently negative: indeed, many represent significant opportunities, but collectively they reshape how pressure moves through organisations. And that raises a key leadership question: have (our) internal structures evolved at the same pace as our environment? Wellbeing is determined not only by how individuals cope, but by how work is organised for and around them: the clarity of roles, the volume and pace of work, the quality of support, and the extent to which people have the space to exercise judgement. In this context, personal wellbeing is no longer a separate people initiative. For accountancy practices, it has become inseparable from service quality, client and talent retention, and profitability. A profession built on judgement Accountancy is a profession built on judgement: Professional scepticism. Careful documentation. The ability to challenge assumptions. The responsibility to raise concerns when something does not look right. These capabilities underpin the trust placed in professional accountants. But they rely on the availability of something that is rarely and openly discussed: time and space to think. Cognitive bandwidth Good judgement requires the time and space to think, the confidence to question decisions and the ability to consider risk from multiple perspectives. Research consistently shows that when demands are high and time, support and clarity of purpose are in short supply, both personal wellbeing and organisational performance deteriorate. The evidence increasingly shows that the environment in which accountants operate is more demanding. For example, research by Chartered Accountants Worldwide has indicated that 55% of chartered accountants report experiencing stress or burnout, while four out of five believe poor mental health is a growing issue within the profession. These figures should not be interpreted purely as relating to personal wellbeing concerns; they are signals about the operating environment for professional services. When cognitive capacity narrows for professionals of whom high levels of judgement is required, the consequences rarely appear as dramatic failures. Instead, they emerge gradually: Risk surfaces more slowly because people have less time to step back, challenge assumptions or notice emerging issues. Documentation becomes increasingly defensive. Rework accumulates quietly as misunderstanding, incomplete scoping and avoidable errors must be corrected later. Discretionary effort declines. Experienced professionals leave organisations earlier than expected. None of these developments appear overnight, but collectively they influence the quality of judgement within the firm. And in high-judgement professions like accountancy, organisational design ultimately shapes the quality of professional judgement. When work is structured in ways that create chronic overload, ambiguity or continuous interruption, strain on individuals increases, the firm loses some of the elements on which good judgement depends: reflection, challenge, learning and timely escalation. Organisational design, therefore, is not an abstract structural issue, but directly affects the conditions in which professional standards are either sustained or eroded. The accumulation of pressure In my conversations with senior leaders of professional services firms, a recurring theme has emerged: pressure rarely comes from a single change; it comes from the accumulation of many small changes. AI tools are introduced to drive productivity; reporting and regulatory requirements expand; new service lines appear; clients expectations grow for faster turnaround and deeper insight. On its own, each change individually appears to be manageable, but over time, these developments are often layered onto organisational structures designed for a less complex operating environment. New technology may be introduced while documentation expectations remain unchanged: people are expected to adopt new tools without any corresponding reduction in legacy tasks, controls or review steps. New reporting sits alongside legacy processes. Growth strategies accelerate while leadership bandwidth remains finite. The result is not necessarily visible disruption, but complexity continues to accumulate and pressure builds. Firms may remain profitable and outwardly successful, yet internally their systems, structures and people experience greater and more prolonged strain. Burnout as organisational feedback The World Health Organization defines burnout as an occupational phenomenon resulting from chronic workplace stress that has not been successfully managed. This definition is useful because it reframes the conversation. Burnout is not simply a reflection of an individual’s resilience; it is feedback on how their work is structured. In my experience, professionals rarely express a lack of commitment to their work. More often, they describe sustained cognitive demand with limited space to think. Junior staff quietly question how their roles will evolve as automation reshapes parts of the profession. Senior managers hesitate before challenging established views. Partners carry commercial pressure, regulatory oversight and people leadership simultaneously. In the context of pressures developing gradually as expectations accumulate within structures designed for a different environment, burnout is not only a personal experience – it is also an organisational signal. In fact, in professional services environments, burnout, and conversely wellbeing, can be understood as leading indicators of controllable business risk, signalling when work demands are exceeding the system’s capacity to absorb them. Psychological safety and the early surfacing of risk One of the most important leadership responsibilities in professional services firms is protecting the ability of people to speak up. Psychological safety is sometimes misunderstood in professional environments. It does not mean lowering standards or avoiding challenge – it enables the opposite: facing external challenge and disruption, and adapting, and increasing the value provided to clients. In high-judgement professions, psychological safety allows challenge to occur early – when it is most valuable: A trainee must feel able to question an audit judgement. A manager must feel able to flag an unsustainable workload. A consultant must be able to challenge an established process. A partner must be able to acknowledge capacity constraints. When everyone in the firm believes that these challenging conversations are easy to have, risks (and innovations) can be identified sooner. When they are difficult to have, the risks do not disappear – they become harder to detect. In a compliance-driven profession, this makes psychological safety more a governance safeguard than a cultural preference. Technology and the migration of pressure AI is being framed as a productivity solution for professional services and, in many ways, it will be, particularly for the routine-task aspects of accounting and audit work. However, technology and automation rarely remove pressure entirely; more often, they redistribute it, while simultaneously compressing decision-making timelines and concentrating accountability at more senior levels of the organisation. As routine tasks become automated, work shifts toward review, interpretation and dealing with more complex or unusual cases. This means that fewer, more senior professionals are required to make a greater number of higher-stakes judgments, often in shorter timeframes. Automation also creates an expectation of speed, with faster processing assumed to translate into faster insight. The result is that pressure does not disappear, it moves upwards, becoming more concentrated, more cognitive and more time-sensitive, with greater implications for judgment, risk and oversight. If new technologies are layered onto existing workflows without thoughtful redesign, firms can inadvertently create new pressure points. Oversight responsibilities increase. Decision-making accelerates. Documentation expectations remain unchanged. The result is not less intensity – it is a different pattern of intensity. For this reason, technology adoption should be considered not only as a technical investment but also as a driver of an organisational (re)design. Designing work for sustainable performance Many firms have invested in wellbeing initiatives, ranging from employee assistance programmes and flexible working, to wellness sessions, team events, and other supportive measures. These initiatives can play an important role in helping individuals to recover from periods of high intensity work, maintain connection across teams and signal that the organisation values and supports it people. However, where underlying workload, role clarity and capacity remain unchanged, their impact can be limited as they do not address how the work itself is structured. For professionals in highly demanding roles, wellbeing is shaped less by individual initiatives and more by how work is designed. Supportive programmes can signal positive intent but they cannot be the core strategy if day-to-day work remains chronically overloaded. A firm’s wellbeing strategy should at its core include the deliberate, considered design of work: setting clear priorities, aligning workloads with available capacity, defining decision rights, simplifying processes, using technology to reduce unnecessary complexity, and recognising the need for recovery after sustained periods of high intensity work. Therefore, wellbeing is not an add-on initiative and aspiration; it is an outcome of how effectively a firm is structured to support consistent high-quality performance. Designing firms that can absorb complexity Professional services firms will continue to operate in environments characterised by complexity and scrutiny. The objective cannot be to eliminate pressure. Pressure is inherent in the work of professionals that are highly trusted, whose value depends on that trust. Instead, the objective should be to manage intensity and pressure as deliberate operating constraints that must be actively managed, like risk, capacity or cash flow. This means designing organisations that can absorb complexity without eroding good judgement, engagement or professional standards. In this context, engagement is not about general enthusiasm; it is about people being mentally present to their work – willing to contribute, challenge when something does not look right, and take responsibility for the quality of their decisions. In structurally healthy firms, several characteristics tend to be visible: Decision rights – clarity about who decides, who reviews and when issues should be escalated – are well understood. Capacity planning is transparent during peak work cycles. Reporting systems and requirements inform rather than overwhelm. Technology adoption is supported by strategic purpose and thoughtful governance. Leaders encourage early challenge rather than late correction. Recovery following sustained periods of high intensity is recognised as necessary rather than optional. These are not wellbeing initiatives in the traditional sense; they are elements of the firm’s performance infrastructure. Designing firms to perform If we return to that town hall meeting and ask, “How healthy is our firm?”, the answer will not be found in employee surveys alone; it will also be determined by how the organisation is designed. How work flows through the firm. How decisions are made. How pressure is distributed. How easily people can raise concerns. And whether its structures of the firm protect and nurture the quality of judgement expected of its professionals. The accountancy profession has always demonstrated remarkable adaptability. Technical excellence remains strong and innovation continues across the sector. As firms invest heavily in technology, advisory capability and growth strategies, however, equal attention must be paid to organisational design of the systems that allow professionals to exercise judgement effectively under conditions of increasing complexity. For a profession built on trust, the health of the organisation ultimately determines the quality of professional judgement. Organisational health, therefore, is not a soft concern; it is a core strategic capability. And increasingly, it is becoming one of the defining leadership challenges facing professional services firms. Sinéad Munnelly, FCA, is principal at Munnelly Coaching, helping ambitious leaders to think clearly and lead well.

Thursday 23 April | Flux, Dublin 2 | €25pp  The Leinster Society is excited to present an evening event celebrating the women redefining leadership across finance and business.  Where: Flux, Chatham Street, D02 PA06 When: Thursday 23 April How much: €25pp Time: 5.15pm - 8pm This event will be hosted by Leinster Society Chairperson Sarah Murphy and Chartered Accountants Ireland CEO Rosemary Keogh, and will spotlight a number of influential female leaders. Attendees will gain forward‑looking insights and practical guidance to navigate a rapidly changing landscape, from AI and regulation to culture and sustainability. With a strong focus on allyship and inclusive leadership, the event will highlight the shared responsibility in supporting women to thrive. Be part of a powerful conversation about leadership, ambition, and the future of finance. To book your ticket, please email LeinsterSociety@charteredaccountants.ie This event is kindly sponsored by AIB, and funded by Skillnet Ireland. Speakers Caroline Sherry, CFO & Executive Director, Hostelworld Caroline is a highly experienced finance leader with nearly two decades of senior financial management, strategy, and governance experience across global consumer, banking, and financial services organisations. Currently Chief Financial Officer and Executive Director at Hostelworld Group PLC, Caroline has held progressive leadership roles spanning FP&A, financial control, statutory reporting, and audit, including senior positions at Glanbia PLC and Ulster Bank DAC. Carolines background includes extensive board reporting, IFRS statutory reporting, audit management, and performance analysis, alongside earlier audit and advisory experience at PwC. In addition to executive roles, Caroline contributes at board level through non-executive and advocacy positions, reflecting a strong commitment to governance, inclusion, and sustainable business leadership. Caroline is a Fellow of Chartered Accountants Ireland and a member of the Institute of Directors in Ireland. She also serves as a member of Balance for Better Business, an independent business-led Review Group established by the government to improve gender balance in senior leadership in Ireland, and serves on the Board of Neurodiversity Ireland, a charity supporting neurodivergent children and families. Lorna Conn, CEO, Cpl Lorna is an Independent Non‑Executive Director of Bord na Móna plc and Glenveagh Properties plc and an Advisory Board Member of UCD Michael Smurfit Graduate Business School. Lorna is also incoming Chair and an Advisory Board Member of the 30% Club Ireland. A Chartered Director and a qualified Chartered Accountant, having trained with Deloitte, Lorna holds a Bachelor of Commerce degree from University College Dublin and a Masters in Accounting from the Michael Smurfit Business School. Lorna has previously held senior roles in several public companies, in both Ireland and America. Kathy McDermott, CFO, Bidvest Noonan  Kathy is the Chief Financial Officer at Bidvest Noonan, a leading facilities services provider across Ireland & UK. She partners closely with the CEO and executive leadership team to support strategic growth and strong governance. She also leads the finance function across commercial finance, accounting, shared services, procurement, legal and risk.   Kathy has over 15 years’ experience in senior finance leadership roles across complex, multinational organisations. Prior to joining Bidvest Noonan, she held a number of leadership roles with Currys plc, including Head of Finance (UK&I) and Financial Controller for Ireland, where she led large teams through transformation, restructuring, systems change, and commercial decision‑making. Earlier in her career, she gained valuable international experience working in Australia within a global hospitality and services organisation, which broadened her leadership perspective and approach. She trained and qualified with KPMG Ireland, developing a strong technical foundation as both a Chartered Accountant and Chartered Tax Adviser.   Throughout her career, Kathy has led high‑performing teams, navigated organisational change, and built trusted relationships at executive and board level. She places strong emphasis on building trust, developing people, and creating inclusive environments where diverse perspectives are valued. She is actively involved in Bidvest Noonan’s Race Forward Community, supporting initiatives that promote cultural diversity, equity, and inclusion across the organisation. She is also Board Director (voluntary) of Community Credit Union for the past 6 years. Ursula Kelly, Cormac Tagging Ursula is the Managing Director of Cormac Tagging, a leading provider of livestock identification solutions in Ireland.   With a strong background in agriculture and rural entrepreneurship, Ursula has been recognised for her innovative contributions to the industry, including being named AIB Network Ireland Established Businesswoman of the Year 2024. She is currently scaling the business to include emerging markets in Africa and multiple states in the USA. She brings a wealth of expertise and vision to the helm of the company. With a strong background in accountancy, Ursula has built her career on a solid foundation of financial acumen and strategic thinking. Her professional journey began in the accounting sector, where she developed a keen understanding of business operations, financial management, and regulatory compliance. As a dynamic leader, Ursula is recognised for her forward-thinking approach and her ability to inspire teams to excel. Her leadership style is characterised by a commitment to innovation, integrity, and empowering those around her to achieve their best. Ursula is also a passionate advocate for female entrepreneurship especially in agriculture and the wider Ag sector, she supports and mentors’ women within the business community.  Under her direction, Cormac Tagging has grown in both reputation and influence, reflecting her dedication to excellence and her role as a trailblazer for women in leadership. Ursula is the only founding female board member of the industry-led Ag Tech Ireland.  In 2024 Ursula was named Network Ireland Established Businesswoman of the Year.  In 2025, Ursula served as an Irish Ambassador for the European Horizon project FLIARA, which aims to create a European-wide rural innovation ecosystem supporting women-led innovation in farming, agriculture, and rural areas and was also named The Image PwC Family Business Woman of the Year. MC / HOST Rosemary Keogh Rosemary is CEO of Chartered Accountants Ireland. Rosemary joined the Institute from the Houses of the Oireachtas where she held the role of Assistant Secretary General - Corporate and Members' Services. Prior to that, she was CEO of the Irish Wheelchair Association.  Rosemary is also a member of the Boards of Chartered Accountants Worldwide and the Global Accounting Alliance. Rosemary has significant experience working in business in a range of industries at Irish and European level. She also served for five years as a Board Member & Chair of Finance, Audit, Risk & Governance Subcommittee of the Charities Regulator, and a further five years as Chairperson of the National Disability Services Association.  Rosemary is a Fellow of ACCA and holds an MSc in Work and Organisational Behaviour from DCU.     MC / HOST Sarah Murphy Sarah is a fellow of Chartered Accountants Ireland and has over 25 years' experience in financial services, particularly specialising in the asset and wealth management industry. Sarah has worked in both audit and advisory/regulatory roles and has provided services to an extensive range of global fund managers and service providers.  Sarah also leads the distribution practice within PwC Ireland working closely with Luxemburg counterparts to identify solutions to assist managers and other stakeholders with their distribution strategies and with regulation in the jurisdictions into which they sell.  Sarah is Chair of the Leinster Society of Chartered Accountants Ireland having also held Vice Chair and Honorary Secretary officer positions over the past few years.  She is also an active participant in a wider context and has been a member of many industry committees including her current position on the Irish Funds Distribution Committee Sarah has presented extensively on industry related matters.

Chartered Accountants Ireland has reacted to today’s publication of the Critical Infrastructure Bill which aims to fast-track the approval processes for critical infrastructure projects in Ireland. Commenting on the Bill, Cróna Clohisey, Director of Members and Advocacy at Chartered Accountants Ireland said “As a professional body representing 40,000 businesspeople across the economy, we see this Bill as a significant step in the Government’s approach to addressing Ireland’s infrastructure challenges. “Engagement with our members has demonstrated that infrastructure deficits need to be addressed as a matter of urgency if Ireland is to achieve its growth ambitions, meet its energy, transport and water requirements, and its sustainability goals. It is encouraging, therefore, to see the Bill’s focus on coordination and collaboration between public bodies to facilitate the rapid approval of projects and programmes.” Grant Sweetnam, Head of Public Policy at Chartered Accountants Ireland, said: “For a small, open economy like Ireland, infrastructure is key to competitiveness. It is vital for maintaining the standard of living for our citizens, for attracting foreign direct investment, for supporting our SMEs and for ensuring Ireland remains one of the best locations to do business.” “Our infrastructure continues to be one of our most critical competitiveness deficits. It is essential that barriers are removed to facilitate investment in our infrastructure to safeguard Ireland’s social and economic interests.  We look forward to engaging constructively with Government and stakeholders on this issue.”

In Irish news, Revenue has published its 2025 Protected Disclosures report and has also issued updated guidance on qualifying health expenses. In UK news, we feature the second part of our series looking at the key tax changes taking effect in the Financial Year 2026 and tax year 2026/27. We also provide an update on recently published regulations which fast-track the utilisation of surplus advance corporation tax. In International news this week, the European Commission has published an overview of key taxation indicators which show a rebound in tax revenues in 2024. Ireland 1. Revenue has published its 2025 Protected Disclosures report providing details of relevant internal and external protected disclosures during the year. 2. Revenue has issued updated guidance relating to tax relief on qualifying health expenses. UK 3. The second in our series of articles looks at various key changes due to commence at the start of the new Financial Year 2026 and the tax year 2026/27. 4. Read about the new tax regulations which provide for an acceleration of relief for unrelieved surplus advance corporation tax balances. International 5. The European Commission has published Data on Taxation Trends providing an overview of key taxation indicators based on information up to 2024. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s Cross-border developments and trading corner here.  

Revenue has published updated guidance on the Film Corporation Tax Credit with the introduction of a new section on claiming the enhanced tax credit for lower budget films, or as it is also known – the ‘Scéal uplift’. The guidance addresses the EU State Aid transparency requirements as well as removing obsolete details. The tax credit was introduced by Finance Act 2024 and applies to lower budget qualifying film productions certified on or after 20 May 2025. It is available, subject to certification by the Minister for Culture, Communications and Sport, for live action or animated feature films, with qualifying expenditure below €20 million. To qualify, certain key creative roles must also be carried out by Irish or EEA nationals or ordinary residents.

Revenue has updated its guidance for non-resident students who are exercising a short-term employment in the State to replace information previously included in paragraph 3 with a link to the guidance on PAYE exclusion orders.

In part one of this series looking at the key changes to UK tax legislation which took effect due to the commencement of either the new Financial Year 2026 from 1 April 2026 or the new tax year 2026/27 which began yesterday, April 6, we focused on Making Tax Digital (MTD) for Income Tax and measures affecting tax agents. In part two we take a look at key changes to the capital taxes, income tax, corporation tax, and capital allowances. Inheritance Tax (IHT) Reliefs From 6 April 2026, 100 percent IHT relief for both Agricultural Property Relief and Business Property Relief are capped at a combined £2.5 million allowance per individual. Qualifying agricultural and business assets that exceed this threshold now receive 50 percent relief, resulting in a potential effective IHT rate of 20 percent (40 percent IHT rate x 50 percent unrelieved). However, each individual’s £2.5million allowance, or any amount of this which is unused, is transferable between spouses and civil partners, which essentially then can provide 100 percent relief on qualifying assets worth up to £5 million. This significant policy change was announced in the 2024 Autumn Budget and has been the subject of much criticism. Since that announcement, Chartered Accountants Ireland has consistently lobbied the UK government for a range of mitigations to the original policy which culminated when our UK Tax Manager, Leontia Doran, delivered oral evidence last October to the House of Lords Finance Bill Sub-Committee inquiry into these changes which you can view on parliamentlive.tv (4.55pm onwards). Business Asset Disposal Relief (BADR) and Investors’ Relief (IR)  As a result of the increased rates of CGT which took effect from Autumn Budget Day on 30 October 2024, BADR and IR, which previously provided a reduced 10 percent rate of CGT on qualifying business disposals, increased from 10 percent to 14 percent from 6 April 2025. Both have now further increased to 18 percent from 6 April 2026. The lifetime limit (LL) for each remains unchanged at £1 million. As a result of the increase to each of these, their benefit has now been reduced to a saving of 6 percent compared to the maximum CGT rate of 24 percent, or £60,000 if the individual’s full LL is available on the relevant transaction. Dividend income tax rates To more closely align the rates of income tax on passive income with earned income, the dividend income tax rates increased for basic and higher rate taxpayers by 2 percent from 6 April 2026. The basic rate rose from 8.75 percent to 10.75 percent, whilst the higher rate increased from 33.75 percent to 35.75 percent. There is no change to the additional rate, which remains at 39.35 percent, nor has there been any change to the £500 dividend allowance. Although dividends generally continue to be more tax efficient as a form of cash extraction from a company compared to employment income, this increase reduces the tax benefit and therefore necessitates a fresh review of company profit extraction strategies. Corporation Tax (CT) The flat rate CT late filing penalties doubled from 1 April 2026 (the associated tax geared penalties for late filing are unchanged). These are now as follows for late CT returns: Up to three months late: £200 penalty increased to £1,000 for the third consecutive late return, and More than three months late: £400 penalty increased to £2,000 for the third consecutive late return. Although the rates of CT are unchanged in the Financial Year 2026, the increased higher rate of dividend tax has resulted in an associated increase in the rate of Section 455 tax which is payable by companies on loans to participators/associates of participators. This has therefore now increased to 35.75 percent. Other changes to CT, which took effect for accounting periods beginning on or after 1 January 2026, include:  The exemption of UK-to-UK transactions from transfer pricing if there is no risk of tax loss,  Changes to the definition of ‘permanent establishment’ to align with that of the OECD’s Model Tax Convention, and The repeal of the diverted profits tax which has now been replaced with a new charging provision for unassessed transfer pricing profits.  Capital allowances From 1 April 2026 for companies and 6 April 2026 for unincorporated businesses, the main rate of writing down allowances (WDAs) was reduced from 18 percent to 14 percent. As a result, a hybrid rate applies for accounting periods straddling 1/6 April 2026. This reduction has been introduced to finance the new 40 percent First Year Allowance (FYA) for main rate expenditure incurred on or after 1 January 2026. HMRC has updated its guidance on issues that may affect how to file a company tax return which now includes the new 40 percent FYA. According to HMRC, it will update its Corporation Tax online service in April 2027 for the new FYA. To claim this new allowance before then, the following boxes on form CT600 should be completed: boxes 725 or 750 for claim amounts, and box 760 for qualifying expenditure.

Revenue has published updated guidance in paragraph 3.1 on the EU Mandatory Disclosure of reportable cross border arrangements to reflect amendments  arising from the transposition of Council Directive (EU) 2023/2226 (DAC8).  Paragraph 3.1 sets out the specified information to be provided to Revenue for each reportable cross‑border arrangement. The update confirms that an abstract summary of the business environment is no longer required in respect of reportable cross-border arrangements. Instead, a description of the relevant arrangements, along with any additional information that would assist a competent authority in assessing potential tax risk should be provided.

Revenue has published updated guidance on the Outbound Payments Defensive Measures. The new guidance provides additional detail and clarification on the application of the measures, including information on the ‘association’ test. The updated sections of the guidance are as follows: A new section 3.4.2 has been included concerning the application of the association test for Irish partnerships, New examples relating to associated entities and Irish partnerships are included in sections 3.4.3 and 3.4.4, Section 3.4.5 now includes updates concerning association via individual(s), and new examples are also included, Section 3.8 includes updated guidance and examples to confirm that Net CFC Tested Income tax (NCTI) under US tax law is regarded as similar to the controlled foreign company charge for the purposes of the outbound payment defensive measures, The text relating to the examples in section 5.1.2 and in section 5.1.4 have been updated, and A new section 5.1.5 has been included with examples concerning Investment Limited Partnerships. Several other minor amendments have been reflected throughout the guidance.

Revenue has published updated capital acquisitions tax (CAT) guidance on Business Relief to reflect the Finance Act 2025 amendments to sections 100 and 101 of the Capital Acquisitions Tax Consolidation Act 2003. New examples have been included in the guidance to reflect the relevant amendments.

Readers may recall that when the old Advance Corporation Tax (ACT) regime was abolished in 1999, this necessitated regulations to ensure that any unrelieved surplus ACT balances carried forward by companies could still be accessed via the ‘shadow ACT’ rules. Regulations have now been laid before Parliament to amend these rules. The former ‘shadow ACT’ rules involved a notional calculation of ACT paid on distributions made after 5 April 1999. The Government says that these rules have served their purpose. However, in recognition that some companies still have significant balances of unrelieved surplus ACT, the current regulations, which cancel all remaining shadow ACT balances, also allow companies to speed up utilisation of their remaining unrelieved surplus ACT balances.

Revenue has updated its guidance on tax relief available for qualifying health expenses to provide further clarifications, including information relating to the Common Conditions Service. The examples in the guidance have also been refreshed to reflect the increased standard rate bands and tax credits for 2025. The relevant updated sections are as follows: Paragraphs 2.2 and 3.2 have been updated to advise that, as a Revenue Administrative practice, tax relief will be available on charges incurred on the Common Conditions Service (CCS) pending the introduction of legislation formalising the position. Further details regarding this can be found in our earlier newsletter item. Clarification is provided in paragraphs 3.4 and 3.7 that an entitlement to tax relief on running costs associated which medical equipment or travel and accommodation costs, necessarily incurred in the provision of healthcare may apply as determined on the full facts and circumstances of the individual’s case. In this regard tax relief for such expenditure is not limited to those health conditions for which a flat rate amount is available as set out in paragraph 3.7.3. Paragraph 7 has been updated to outline how claims may be verified to ensure expenses incurred are in relation to 'healthcare' within the meaning of section 469 TCA 1997. Paragraphs 9.6, 11 and appendix 1 have also been updated in this regard. Paragraphs 9.3 and 9.4 have been updated to clarify that an individual may be eligible to claim tax relief on the maintenance costs referrable to the keeping and use of a trained dog. Although a flat rate is available in respect of such expenditure, tax relief is not limited to the flat rate referred to in the respective paragraphs. Paragraph 9.5 has been updated to provide clarity on tax relief available in respect of in vitro fertilisation (IVF) and other forms of assisted human reproduction (AHR).   A decision tree has been added to aid taxpayers in determining if the medical expenses an individual incurs qualify for tax relief under section 469 TCA 1997.