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.

Chartered Accountants Ireland notes targeted actions to support business and the domestic economy, such as changes to Revised Entrepreneurs Relief, the extension of the Special Assignee Relief Programme, and an increased rate of R&D tax credit, noting the role these can play in enabling Ireland to remain competitive in attracting quality employment and investment. Cróna Clohisey, Director of Members & Advocacy, said: “Global economic uncertainty presented government with a trade off in Budget 2026, and it is clear today that VAT measures have trumped personal taxes in the need to protect employment.    “For the first time in five years, income tax credits and bands have not been adjusted for inflation—meaning many workers will face an unexpected tax hike in 2026. Wage growth will push more earners into the 40% tax bracket, while rising PRSI contributions further erode disposable income. This squeeze on take-home pay, despite no change in tax rates, will inevitably impact consumer spending.”  Missed opportunity to reduce the burden of compliance for business On Enhanced Reporting Requirements, Cróna Clohisey said: “It is really disappointing that no changes to Enhanced Reporting Requirements were announced today. The onerous real-time reporting of tax-free small benefits and expenses is a compliance burden on businesses and not addressing this today was a missed opportunity.” Balancing the cost of doing business Chartered Accountants Ireland advocates on behalf of almost 40,000 members, with Institute research showing that 77% of SME members reported increased business costs in the past six months, the largest being labour costs. While the VAT reduction for food, catering and hairdressing services will be helpful in managing costs for some businesses, it will not address the cost pressures facing SMEs across other sectors of the economy. Cróna Clohisey said: “While the reduction in VAT for certain hospitality services may offer some relief to businesses in that sector, it does not address mounting cost pressures across the wider economy. For example, businesses have already been impacted by the increase in Employers’ PRSI from 1 October 2025 with further increases expected each year up to 2028 – a direct increase in the cost of labour. A more sustainable approach to easing these cost burdens is needed.” Supports for business At a time when countries globally are sharpening their industrial tools amid greater competition for investment, today’s changes to the R&D tax credit demonstrate the government’s commitment to research and innovation. Gearóid O’Sullivan, Head of Tax, Chartered Accountants Ireland said: “R&D is an extremely valuable tool to boost economic resilience and drive growth and job creation in the economy, and today’s increase in the R&D tax credit rate to 35% is very welcome. We look forward to further detail in the coming weeks on the government’s research & development compass which we hope will lead to meaningful changes to the relief to address divergence with industry practices. “In terms of broader innovation and enterprise supports, we know that barriers to access and administration can disincentivise businesses from claiming, particularly for time and resource-constrained SMEs. Such barriers should be reduced in favour of efficiency wherever possible.” Addressing the infrastructure deficit Chartered Accountants Ireland has engaged extensively in recent years on methods to address significant deficits in the State’s crucial infrastructure, which represent a threat to ongoing economic growth and investment. Commenting on the tax measures for new build apartments, Cróna Clohisey said: “The VAT cut on new apartment sales coupled with the targeted corporate tax deduction for certain construction costs on the building of new apartments should help address supply challenges given it will be implemented in a time limited and targeted way. Viability of certain construction projects has been cast into sharp focus in recent months, with CSO data showing a drop of 24% in apartment completions from 2023 to 2024. Today’s measures will hopefully jumpstart construction on many sites that already have planning permission.”  

In Irish news, the Fiscal Monitor for September 2025 has been released and Revenue has announced available supports in advance of the 2025 Pay and File deadline. In UK news, HMRC has published guidance on the exemption application process for the digitally excluded from Making Tax Digital for Income Tax, and agents should take note of a new postal address for HMRC’s Agent Maintainer Team. In International news this week, the European Commission recommends a blueprint for Savings and Investment Accounts to Member States. Ireland 1. The Department of Finance and the Department of Public Expenditure and Reform have published the Fiscal Monitor for September 2025 which confirms an Exchequer surplus of €1.4 billion to the end of September. 2. Read about the extended opening hours and other Revenue supports available in respect of the 2025 Pay and File deadline for income tax and capital acquisitions tax returns. UK 3. HMRC has launched its process for applying for an exemption from Making Tax Digital for Income Tax for the digitally excluded , including the publication of accompanying guidance. 4. A new postal address should now be used when contacting HMRC’s Agent Maintainer Team. International 5. Read about the blueprint for Savings and Investment Accounts recently published by the European Commission. 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 a further warning of fraudulent emails, SMS (text messages) and phone calls seeking personal information from taxpayers. Revenue has updated its website to assist taxpayers identify fraudulent communications. Taxpayers who have provided Revenue account details in response to an email, SMS or phone call are advised to reset their password immediately. Taxpayers are advised to contact their bank or credit card provider if they have provided bank or card details.

The Department of Finance and the Department of Public Expenditure and Reform have published the Fiscal Monitor for September 2025 confirming an Exchequer surplus of €1.4 billion to the end of September. This compares to a surplus of €5.0 billion recorded for the same period last year. When receipts arising from the Court of Justice of the European Union (CJEU) ruling in the Apple State Aid case are excluded, an underlying Exchequer deficit of €1.9 billion was recorded, a deterioration of €6.9 billion on the same period last year. Tax receipts collected to the end of September were €73 billion, which was €4.8 billion higher than the same period in 2024. Excluding the once off receipts from CJEU judgement in the Apple State Aid case, total receipts amounted to €71.3 billion, an increase of €3.1 billion on the corresponding period in 2024. Income tax receipts for the month of September were €2.5 billion which was a reduction of €0.1 billion on receipts collected in September 2024. On a year-to-date basis, receipts to the end of September of €25.8 billion were up by €1.0 billion (4.0 per cent), when compared to end of September 2024. Corporation tax receipts of €1.8 billion were collected in September, an increase of €0.3 billion on the same month in 2024. On a cumulative basis, receipts of €20.0 billion were up by €2.2 billion on the same period last year. When the once-off CJEU receipts are excluded, cumulative corporation tax receipts to September 2025 amounted to €18.2 billion, up on the same period last year by €0.4 billion. September is a VAT due month, with VAT receipts collected of €3.6 billion representing an increase of €0.2 billion when compared to the same month last year. Cumulative receipts of €18.8 billion were ahead by 4.8 percent on end of September last year. Commenting on the figures, Minister for Finance, Paschal Donohoe said: “Today’s figures show that tax revenue growth in the year to date has been broadly steady, which is a positive sign of the underlying strength of our economy as we prepare to announce Budget 2026. I would also highlight the transfers we have made to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund this year: the total in both funds now stands at over €16 billion, clearly demonstrating this Government’s commitment to building up our buffers for the future” The Minister for Public Expenditure, Public Service Reform and Digitalisation, Jack Chambers, outlined that capital spending is up by nineteen percent year on year and that the White Paper, published last Friday, reflects the €108.7 billion gross expenditure ceiling for 2025.

Revenue has announced a range of supports in advance of the extended filing date of Wednesday 19 November 2025, for Income Tax and Capital Acquisitions Tax via ROS. The ROS technical helpdesk will help filers who experience technical difficulties accessing ROS services, including difficulties relating to digital certificates, accessing ROS and ROS system errors. The helpdesk can be contacted via chatbot, My Enquiries, email (roshhelp@revenue.ie), or telephone (01 738 3699), The ROS payment support unit can be accessed via My Enquiries, or the Collector General’s Division (01 738 3663), and For assistance filing an Income tax Form 11, queries can be directed to My Enquiries, or the Businesses Taxes helpline can be reached on 01 738 3630. Full details of the above supports, in addition to the extended support opening hours, are outlined in Revenue’s eBrief No. 179/25.

The Institute welcomed the new guidance published last week by Revenue on the provision of staff meals, which sets out the circumstances under which certain employer-provided meals, including working lunches, will not give rise to a taxable benefit-in-kind. The taxation of employer-provided meals has been a key topic of the Institute’s engagement with Revenue, under the auspices of CCAB-I, through both the Tax Administration Liaison Committee and direct representations to the Department of Finance. CCAB-I’s Pre-Budget Submission 2026 addressed the taxation of ancillary benefits provided by employers, including staff working lunches, highlighting the impacts on staff morale and economic activity, and broader issues of tax fairness. The key points to take from the new guidance are as follows: Where meals are consumed on-site and are available to all staff, such meals can be provided tax-free as of 1 Oct 2025. Working lunches are now exempt if such lunches are required operationally, consumed on-site, and cost €19.25 or less per person. Meal vouchers are now fully taxable, and the €0.19 deduction is removed. Employers must keep detailed records of all meals provided as Revenue may carry out spot checks. The new guidance outlines two scenarios where a charge to tax will not arise on the provision by of staff meals by an employer. The guidance clarifies that the term “meals” includes a broad array of consumable items, with specific examples provided. The first scenario in which a tax charge will not arise involves meals provided on the employer’s premises. The guidance confirms that, effective from 1 October 2025, Revenue will accept that meals brought onto and consumed on the employer’s premises will not be treated as a taxable benefit-in-kind, provided they are made available to all employees. The second scenario described in the guidance acknowledges that, in certain business-related contexts, it may be necessary to provide meals to a specific group of individuals—for instance, a working lunch or dinner. In these circumstances, from 1 October 2025, a taxable benefit in kind will not arise provided the following conditions are met: a specific operational requirement exists, for example, lunch provided during a lunchtime meeting or staff working after normal hours, the meals are consumed on the employer’s premises, and the total cost per employee does not exceed the domestic subsistence civil service day rate of five hours or more but less than ten hours which is currently €19.25 per employee per working day. The manual includes several examples illustrating the tax treatment applicable in particular situations.

Last week I had the opportunity to attend the Global Accounting Alliance (GAA) Tax Working Group Annual Conference in Germany. The GAA Tax Working Group brings together the Tax Leaders in each of the member organisations comprising the leading accountancy bodies in Australia, New Zealand, Germany, Japan, Hong Kong, Canada, South Africa and the US. As part of the trip, the group visited the Federal Fiscal Court in Munich and the German Parliament in Berlin. These visits provided valuable insights into the German legal and political systems. Throughout the week, the group convened daily meetings to discuss the economic and fiscal landscape in each of our countries. We were provided with particularly valuable insights from our North American colleagues on what is happening on the ground with the governments in Canada and the US. These are obviously key markets and trade partners for the Irish economy. It seems positive action is being taken in Canada by the new leader, Mark Carney. However, the recent government shutdown in the US is likely to lead to further disruption in the US and indeed across the world. The group meets virtually on five other occasions throughout the year to share knowledge and insights. However, the value of the in-person sessions cannot be overstated. We are lucky to be part of this group and to be able to share knowledge with our professional accountancy colleagues across the world.

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. This newsletter highlights that the delayed EU entry-exit system (the digital border system for registering non-EU nationals travelling to the Schengen area for short stays) comes into force later this week on 12 October. Also covered are the announcements on EU-UK youth mobility made by the Chancellor Rachel Reeves at last week’s Labour Party Conference. The minutes of the June meeting of the UK-EU Trade and Cooperation Agreement Domestic Advisory Group, which Chartered Accountants Ireland is represented on, have been published. And finally, you can also read more below about the implementation of ICS2 which, as covered last week, has been delayed to 31 December 2025. ICS2 further update HMRC has confirmed that traders who need more time to prepare for the move to ICS2 are able to continue to submit ENS (entry summary) declarations via Import Control System Northern Ireland (ICSNI) for movements until 31 December 2025. However, they are advised to continue to work with their supply chain to prepare for ICS2 and use this no later than this date. The message from HMRC is set out below:  “If you’re already using ICS2 you should continue to do so, or if you expect to be ready to migrate to ICS2 shortly you should continue preparations and migrate as planned.  As a reminder, you don’t need to make ENS declarations for parcels moving to and from consumers (i.e. private individuals) in Northern Ireland.  When physically moving goods from Great Britain to Northern Ireland   Trader Support Service (TSS) users can continue to submit ENS declarations using ICSNI or the new ICS2 dataset if ready to do so. For movements from 1 January 2026 the new ICS2 dataset will become mandatory for all TSS users.  As a TSS user, you don’t need to register to use ICS2, as they will do this for you.     However, if you don’t use TSS to submit ENS declarations, you’ll have to register by 31 December 2025 to use the EU Shared Trader Interface (also known as the EU Customs Trader Portal) to submit safety and security declarations into ICS2. Visit GOV.UK Register to use the Import Control System 2 for more information.  You don’t need to do anything if you are already using ICS2, when moving goods by road (including roll-on roll-off movements) from Great Britain to Northern Ireland.   When sending or receiving goods moving from Great Britain to Northern Ireland   If you are a business that sends or receives goods that move from Great Britain to Northern Ireland, you should:  speak with those who are physically moving your goods on your behalf, such as your haulier, freight forwarder or express operator to check whether they need to make any changes to their processes for ICS2  make sure that for movements arriving in Northern Ireland after 31 December 2025, your supply chain has the correct information, at the correct time, to keep your goods moving as smoothly and efficiently as possible   When sending or receiving goods moving from Great Britain to the EU  If you move goods from Great Britain into the EU, you may need to use ICS2 now depending on the country you are moving goods into. A list of all ICS2 territories and the date from which ICS2 becomes mandatory for road and rail movements is available at the bottom of this page: Guidance for the submission of an ENS for road and rail during the ICS2 and NCTS P6 derogation period.  If you are moving goods by transit you will need to meet safety and security requirements for the relevant system (ICS, ICS2 or NCTS6-TSADs) of the country you are moving goods into.  You must check with the customs authority of the ICS2 territory you are moving goods into for details on which systems to use and any specific ICS2 processes to follow (for example, use of the ELO system for movements into France).  Further information  You can find more information on:  Using ICS2 for movements into Northern Ireland - Make an entry summary declaration using the Import Control System 2 - GOV.UK  Using ICS2 for movements into the EU - Import Control System 2 (ICS2)  Using TSS - Sign up for the Trader Support Service - GOV.UK.”  Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Check if a business holds Authorised Economic Operator status, List of goods imported into Great Britain that are controlled, Authorisation type codes for Data Element 3/39 of the Customs Declaration Service, Country codes for the Customs Declaration Service, CDS Declaration Completion Instructions for Imports, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, Currency codes for Data Element 4/10 of the Customs Declaration Service, Data Element 2/3: Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS), Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS), and Valuing imported goods that are lost, damaged or defective.

In this week’s detailed miscellaneous updates which you can read more about below,  HMRC has launched a new HMRC manual finder tool, and new guidance and webinar dates for the 6 April 2026 changes to PAYE rules for labour supply chains with umbrella companies has been published. In other news this week: The House of Commons Library has published the research briefing Fuel Duty: Developments since 2022. This briefing refers to calculations performed by the Office of Budget Responsibility which indicate that freezing fuel duty rates cost the government approximately £100 billion between 2011 and 2024, A research briefing about the structure of Inheritance Tax (IHT) and the debates there have been about IHT in recent years has also been published,  The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place, and Check HMRC’s online services availability page for details of planned downtime and the online services affected. New HMRC manual finder tool This new tool enables searching across all manuals, filtering by manuals or manual pages, and sorting of results, with the aim of letting users also see the latest updates more easily. The tool is available at the following link: Find HMRC manuals page. HMRC’s welcomes feedback on the new tool. The feedback route to use is set out in the banner at the top of this new page. Feedback can also be emailed to hmrcmanualsteam@hmrc.gov.uk. HMRC has also published a new tool which can be used to check if a claim for corporation tax overpayment relief can be made. This also covers how taxpayer’s can make the claim. Guidance and webinar dates for labour supply chains featuring umbrella companies: PAYE responsibilities From 6 April 2026, recruitment agencies (or, in their absence, end clients) will be responsible for deducting PAYE on payments to workers supplied via umbrella companies. HMRC published draft legislation for this on L-day on 21 July 2025. To support businesses and at the request of stakeholders wanting as much information as possible on how the legislation will work, HMRC has now published the associated guidance ahead of the final legislation. Note that this guidance is in draft and may change if there are any changes to the legislation before it receives Royal Assent. The guidance aims to provide detailed information on the changes which have been designed to tackle non-compliance in the umbrella company market. Agencies and other parties in labour supply chains can also register for one of HMRC's in-depth webinars on 7 and 21 October or 17 November to understand more about the changes and ensure compliance readiness. HMRC’s Employment Status Manual has also been updated to reflect these changes. Further guidance is also available here: Help with labour supply chain assurance.  

The European Commission has recommended to Member States a blueprint for Savings and Investment Accounts (SIAs). SIAs enable retail investors to invest in capital markets. Among other recommendations, the Commission notes that tax incentives and simplified taxation procedures should be key features of SIAs.

HMRC has asked us to share that its Agent Maintainer Team has a new postal address. The team, which forms part of HMRC’s Agent Compliance Team, is responsible for setting up new self-assessment agent records and amending those records. The new address which agents should use for postal correspondence is: Agent Compliance Team, HM Revenue & Customs, BX9 2BG.