Thank you
We are ending our live Q&A now. Anyone with further queries can contact Dominic Coyle at dominic.coyle@irishtimes.com and he will endeavor to provide answers in his weekly Q&A column.
Thank you for joining us.
Capital Taxes
Q: Will I get the benefit of the inheritance tax threshold increases for a bequest from a will where the disponer’s death was in early 2026 and the grant of probate was in September 2026?
From James Moore
A: Inheritance tax-free threshold are assessed against date of death, not probate or when the inheritance is received. So, in this case, where the person died earlier this year, it is the pre-budget thresholds that will apply. – DC
Investment Scheme
Q: Will it be possible to invest the full €12,000 per annum in one go rather than in monthly amounts?
From Marie Porter
A: We’re waiting for the enabling legislation for the fine detail on this but, given that Minister Simon Harris announced an annual contribution limit rather than, say, a monthly limit of €1,000, which would have had the same effect, it seems that you will be able to invest the full €12,000 annual limit in one go rather than drip-fed across the year.
That would also help keep costs down, though whether that is recognised by providers has yet to be determined. – DC
Childcare
Q: For the reduction in crèche fees, the given example seems to be for a crèche in Band D. Will it apply proportionally to all bands?
From Nick
A: The illustration provided by Government, somewhat misleadingly, is based on Band E – for people using childcare for between 40 and 50 hours a week.
The reality in many cases is that operators who are open for 10 or more hours a day and have to staff up accordingly offer only Band F coverage.
Not only is this currently €56 a week more expensive under core funding before subsidies, but those subsidies run out after 45 hours.
So while people will benefit from the rise in subsidy from €2.14 to €2.50, regardless of band, if they are in Band F, some of their hours are not covered by the subsidy and so the reduction is fees will not be strictly pro rata. – DC
Investment Scheme
Q: Can I transfer funds from a current investment account into the new scheme, and, if I can, will I have to pay tax on any increase in value of the current fund?
From Bob
A: Some of the detail will only emerge with the legislation establishing these new investment funds.
I don’t see why people would not be able to move savings from an existing investment fund (subject to any lock-in conditions on that investment) to a new personal investment account – up to the €12,000 annual limit.
However, such a transfer will effectively be an exit from your current investment and I can say with confidence that any exit will be treated under the rules applying to that class of investment, so yes, you will have to pay tax on any profit on your investment up to the point of any transfer. – DC
Capital Taxes
Q: Does the reduction in capital gains tax apply to individuals as well as business?
From Geoff Scargill
A: Capital gains tax was one of the surprises in the budget as, while there has been a long-standing view in the business and investment communities that Ireland’s rates are out of kilter with international comparison, there was no specific clamour for change ahead of the budget.
And in a budget that followed recent practice of leaking essentially every detail before Ministers got to their feet, there had been no suggestion that a cut in capital gains tax was coming.
The good news for you, however, assuming you have capital gains on your investments, is that the two percentage point cut in the capital gains tax rate – to 31 per cent from 33 per cent – applies equally to individuals and business. – DC
Income Tax
Q: What income is allowed for a couple over 66 [before tax]?
From Mary Hughes
A: Marginal relief is available where your total income is not in excess of double the €18,000 (ie €32,000).
Where marginal relief applies, you will only be subject to income tax on difference between your total income and the exemption limit of €18,000 for single persons (subject to increase depending on whether you have dependent children). – BP
Investment Scheme
Q: If your portfolio is above €50,000 and you decide to sell them, are you subject to capital gains tax on the capital gain?
From Amy
A: It is not anticipated there will be any capital gains tax on the disposal of your investment in the new Irish investment account. The proposal suggests that there will be an annual tax charge of 1 per cent on the value in excess of €50,000.
This 1 per cent tax charge will arise on an annual basis and it will be the fund administrators’ responsibility to collect this tax from your fund – this should hopefully ease the administrative burden on the investor.
There should be no further tax arising on a disposal or cash withdrawal. Further guidance on this should be available when the Finance Bill is published next week. – RG
Social Welfare
Q: Was there an inflationary increase added for the child benefit (€140 per child)? If not, why not?
From Anne Marie Murphy
A: Nope, there was no change in the €140 monthly payment under child benefit.
Why? well, you’d need to ask the Ministers, but I suspect they may have decided to concentrate their financial firepower in this area on childcare costs rather than child benefit. – DC
Investment Scheme
Q: Do you get to choose where your money is invested or does the Government supply guidance via a reliable broker?
From Angie
A: The detail on how the investment accounts will operate has yet to be issued. We are expecting more detail on these accounts in the Finance Bill, which is due to issue on October 15th.
That said, the Minister did say that only eligible products, such as shares, bonds, investment funds and insurance based investment products, can be held in these accounts. – BP
Housing
Q: I submitted a claim for the Help to Buy scheme earlier this year and received the maximum €30,000. Am I entitled to the additional €5,000 announced yesterday?
From Mairéad
A: Unfortunately, the increased amount is effective from today and will not be backdated. – RG
Capital Tax
Q: From what date do the changes in capital gains tax come into effect?
From Sarah
A: The 31 per cent capital gains tax rate will come into effect from today. The 31 per cent rate of capital gains tax applies to the disposal of assets with the exception of development land.
Gains made on the disposal of development will continue to be subject to a rate of 33 per cent. – RG
Minimum Wage
Q: From what date does the new Minimum Wage of €14.94 apply?
From Colman O’Flaherty
A: The new minimum wage will take effect from January 1st, 2027.
Social Welfare
Q: When is the increase in fuel allowance coming in?
From Angela Parker
A: The fuel allowance has increased by €5 per week and we understand that this change will come into effect from January 2027. – BP
Single People
Q: Has the budget got anything for single people? I feel like we’re a growing cohort the Government never even considers!!
From Sorcha Grisewood
A: Well, you will benefit from the €2,500 increase in the standard rate income tax band as long as your earnings are above €44,000.
You will also be €250 a year better off due to the increase in the personal tax credit and either the PAYE/employee or earned income tax credit, whichever applies to you. If you are renting, there is also the €150 increase in the rent tax credit. – DC
Childcare
Q: I have two children in afterschool care. Twenty-five hours per week. One in junior infants and one first class.
Current National Childcare Scheme is €2.14. Will this remain unchanged next September? Or will my son who will be senior infants next sept get €2.50 subsidy?
From Ian
A: The subsidy under the National Childcare Scheme is rising, as you say, from €2.14 an hour to €2.50 although that will not happen until September next year.
The good news is that your child continue to be eligible in afterschool care next year when he is in senior infants. – DC
Education
Q: Any help for graduate medicine fees?? Will the €150 capitation fee cover grad med fees?
The Government was talking about paying for fees in return for a service commitment to HSE. I can’t find any further talk about it.
Fees are €16,000 per year and accommodation is on top of that. It is crippling. There are no loans available for graduate medicine so we are trying as a family but very costly. Would appreciate any help.
I get the rental credit and 20 per cent off tuition fees which is about €800 per year. Was hoping for some news.
From Mary Cullen
A: There was no specific mention of graduate medicine fees. You are correct that there has been speculation the Government might look at covering/subsidising fees in return for a commitment to work in the HSE for a certain period as part of efforts to stem to drain of new and recently qualified doctors abroad.
However, there was absolutely no mention of it in the Ministers’ speeches, and I cannot find a single mention of any such measure in the associated budget documentation.
I’m kind of surprised that there is no access to loans for graduate medical students but so be it. You should get the benefit of the €150 reduction in fees. – DC
Social Welfare
Q: What is happening with disability allowance?
From Rachel McDonald
A: The disability allowance should increase by €10 per week with effect from January 1st. There is also an increase of €10 per week in the employment earnings disregarded for disability allowance from July 1st.
This means a single person on disability allowance can earn over €9,000 a year without impacting their allowance. The Minister also announced a new €500 cost of disability payment for people receiving long-term disability payments. This payment is expected to be made as a lump sum in 2027. – RG
Social Welfare
Q: Was there any increase in the fuel allowance means test limit currently set at €534 per week?
From Kevin McSharry
A: From January 2027, the income limit for a single person aged 66 or over goes from 50 per cent of the couple limit to 60 per cent of the couple limit. In money terms, the single limit rises from €534 to €641 a week. – BP
Housing
Q: We currently have a claim for Help to Buy in for the €30,000 amount. We have signed contracts but have not yet drawn down. Can we avail of the €35,000?
From Jack
A: The new, higher relief under Help to Buy kicks in from today but, as of now, it appears Revenue, which operates the relief, is unsure exactly what that means.
Certainly, going forward, any first-time buyer applying to the scheme will be able to claim relief of up to €35,000 towards the cost of purchasing a newly-built home, up from €30,000 previously.
However, Revenue cannot tell me at this point whether applications already made but not yet approved will be assessed under the new rules or whether those applicants will be required to make a new application.
They are also not yet able to clarify whether applications that have been approved but not yet drawn down can be amended to avail of the extra €5,000 in relief or not.
It is a subject we will return to when Revenue has had time to determine how the new relief plays out on applications made before budget day.
Childcare
Q: We are in a crèche in south Dublin and already pay well above the €735 cap. It’s five days a week which equates to 55 hours landing it in Band F.
The budget didn’t mention if banding impacts the cap, so will we be entitled to the €550?
From Paul
A: No, you will not. The €550 monthly cost relates to people availing of Band E care (creche care for up to 50 hours a week).
This year, Band E providers can charge €280 before the National Childcare Scheme subsidies of €2.14 per hour up to 45 hours. That subsidy brings the charge down to €183.70 a week, or €735 a month.
Band F providers can charge €336 a week under core funding. Even with the National Childcare Scheme subsidy, that still amounts to €239.70 a week, or €958.80 per month.
You will benefit from the increase in National Childcare Scheme subsidy to €2.50 an hour for a maximum of 45 hours from September of next year but it will not get your cost anywhere near €550 a month. – DC
Investment Scheme
Q: Why do you keep referring to it as the tax-free investment scheme? Is there deduction on contributions? It appears not so we have already paid tax on any money we pay into it.
From Mike
A: Unfortunately, there is no income tax deduction on contributions. The reference to tax-free investment is in referring to the income and gains arising on your investment in the scheme.
Minister for Finance Simon Harris announced there will be a tax-free threshold of €50,000. As such, where the value of your investment does not increase above €50,000, no tax should be payable.
Where you investment increased above €50,000, there is a 1 per cent tax on the value in excess of the €50,000. The 1 per cent tax will apply on an annual basis to the value in excess of €50,000 in that year.
There will be no requirement for you as the investor to engage with Revenue to make this tax payment should it arise, as this responsibility is expected to fall on the investment provider.
The maximum contribution limit is expected to be €12,000 per annum. We expect to see further details on this in the Finance Bill which is due to be released next Thursday. – RG
Tax
Q: Is there any change to the €3,000 tax free gift amount per year?
From Liam Murphy
A: Unfortunately, the Government has not announced any changes to the €3,000 small gift exemption. – RG
Energy
Q: Please explain more about €2,000 grant for replacing old central heating boilers. Can it be replaced by a new and more efficient kerosene fuelled boiler?
From Patrick Maher
A: The grant is targeted to remove old fossil fuel or electric heating systems when switching to renewable alternatives. It is not expected to apply for the replacement of new oil, gas or Kerosene boilers. – RG
Housing
Q: On mortgage tax relief, will this scheme be offered again in 2027?
From Rachel Harwood
A: Unfortunately, there was no extension of mortgage tax relief in the budget. As such, it is not intended that this will extend to 2027, but there may be provisions relating to this that have yet to be seen in the Finance Bill which is expected to be published next Thursday. – RG
Energy
Q: Any changes to benefit-in-kind, especially in relation to electric vehicles?
From Damien Hanniffy
A: Yes, there has been a further reduction in the relief available where electric vehicles have been made available by employers.
From 2019 to 2022. where you made an electric car available to your employee for private use, the value of the vehicle was not subject to benefit-in-kind. In more recent years, the Government has begun tapering the relief available.
In 2026, where electric vehicles were provided to an employee, the value of the electric vehicle subject to benefit-in-kind was reduced by €30,000 and the excess value was subject to benefit-in-kind.
For 2027, the deduction available will be €15,000 with excess value being subject to benefit-in-kind. – RG
Income Tax
Q: Is the level at which a couple pay the 40 per cent tax rate increased in the budget? I notice there is an increase for a single person.
From Joe O Callaghan
A: It is. A single person will not pay 40 per cent income tax until their income exceeds €46,500 next year (up from €44,000 this year).
The outer limit of the standard rate tax band for a married couple where two people are working will be twice that – €93,000 – up from €88,000 this year.
For a married couple where only one spouse is working, the band threshold will rise from €53,000 this year to €55,000 next year. – DC
Pensions
Q: I am 75 years old and married for 46 years. I have a small pension and a contribututory one, and my husband has a pension and contribututory pension. What did we actually gain from this budget?
From Carmel
A: You should benefit from the increase in the State pension which has increased by €10 per week.
There are also tax changes which may benefit you such as the increase to the standard rate band of €2,500, the increase to the personal tax credit of €125 and the USC changes.
I have attached a link to the Pwc calculator which will give you a more detailed calculation of your tax savings from Budget 2027 based on your circumstances.
Childcare
Q: For childcare providers who opted out of core funding, what changes will apply to those fees?
Currently paying €320 per child per week (some months charged as five-week months) for two children. After National Childcare Scheme deduction it is €2000+ per month – absolutely crippling.
From Sorcha McDermott
A: If your childcare provider has opted out of core funding, it is up to them and you what they charge and what you are prepared to pay.
Speaking to providers in the sector, there certainly seems to be growing concern about the sustainability of the current core funding model.
As you say, you will benefit from the increased National Childhood Scheme subsidy, but that increase will amount to €16.20 per child per week, assuming they are in care for 45 hours. And, of course, it does not kick in until September of next year. – DC
Energy
Q: What are the details of the oil boiler replacement scheme?
From Shane O’Brien
A: The grant is available to remove old fossil-fuel or electric heating systems when switching to renewable alternatives. It is not expected to apply for the replacement of new oil, gas or Kerosene boilers.
The Sustainable Energy Authority of Ireland has already updated its website to reflect the budget announcement. Further information can be found here. – RG
Capital Taxes
Q: Regarding childless couples/individuals and inheritance. As no significant change occurred to the category B and C inheritance/capital acquisition tax groups – is it possible there might be an increase in the small gift exemption threshold contained in the Finance Bill that wasn’t announced in the budget speech?
From Ronan Cull
A: The Group B threshold has increased from €40,000 to €44,000 and the Group C threshold has increased from €20,000 to €22,000. These changes will apply to gifts or inheritances taken on or after October 7th 2026.
While these changes are welcome, they do little in terms of reducing the tax burden for beneficiaries who fall within these categories.
It is possible that the small gift exemption of €3,000 per annum could be increased in the Finance Bill, which is due to issue on October 15th. That said, I would think the likelihood of any change is probably quite low. – BP
Pensions
Q: I’m a pensioner. My annual total pension is about €22,6450 per annum. Will I be paying less tax next year?
From John
A: You should benefit from some of the tax changes. The exact amount will depend on your personal circumstances.
I have attached a link to the PwC calculator which will give you a better understanding of the tax savings based on your personal circumstances. – BP
Investment Scheme
Q: Once investments accumulate to above €50,000, it is not clear whether the imposition of a flat rate 1 per cent tax on the value in excess of this is by implication the only tax liability on this value; or if capital gains tax and income tax on dividends is also applied to any gains.
From Nick
A: Based on the documentation issued from the Department of Finance, it would appear that a 1 per cent flat rate of tax will apply to the value of the account above €50,000, but we will need to see the detail in the Finance Bill to understand exactly how the new Investment Accounts will operate. We understand that no other Irish tax should apply to the Investment Accounts. – BP
Income Tax
Q: My income is circa €100,000 per annum. My wife and I are pensioners. My wife does not have any income of her own. She doesn’t qualify for the State pension as she gave up her nursing career to be a stay-at-home mother.
Will we benefit to the same extent as a married couple whose €100,000 income is split more evenly between the two of them?
From John Gleeson
A: As a single income married couple, the applicable standard rate threshold should increase from €53,000 to €55,000. – RG
Social Welfare
Q: Will the maternity benefit increase?
From Aoife
A: Maternity benefit is expected to increase in line with increases to social welfare. As such, the weekly rate should increase from €299 per week in 2026 to €309 per week in 2027. – RG
Pensions
Q: Has a pensioner’s tax free allowance of €18,000 increased?
From Jane
A: Unfortunately, the Government did not announce any changes to the tax-free allowance which currently applies to individuals over the age of 65. – RG
Income Tax
Q: What’s the benefit for single income household for married person?
From Nawab Sheriff
A: The standard rate band (being the band that you pay tax at a rate of 20 per cent) has increased for married couples or civil partners with one income from €53,000 to €55,000.
In addition to this, the personal tax credit which is available to both, you and your spouse increased by €125 per individual.
Where your spouse is caring for a dependent person (such as a child for whom child benefit is payable, a person over 65-years-old, a person who is permanently incapacitated) you should benefit from the increase in the home carer tax credit.
As everyone’s personal circumstances are different, I would encourage to use the income tax calculator which has been updated to reflect the changes announced in Budget 2027. This will allow you to compare your take home pay in 2026 to 2027. – RG
Energy
Q: When does the grant of €600 for solar battery commence?
From Mary Dunne
A: The Battery Energy Storage Grant opened yesterday for applications. Please refer to the SEAI website for more details. I have attached a link. – BP
Investment Scheme
Q: If the profit on your investment brings you over the €50,000 tax-free threshold, is the 1 per cent applied just to the profit?
From Jason
A: It would appear that any value over €50,000 (as opposed to profit) will be subject to the 1 per cent flat rate tax annually. That said, we will need to see the detail in the Finance Bill to confirm exactly how the new investment accounts will operate. – BP
Capital Taxes
Q: I am living in Japan for the past 20 years. My mother recently died. I understand I get more bang for my buck with the increased inheritance threshold.
Does it matter on the timing probate is paid? Can I avail of the increased €420,000 threshold if probate is passed next year? All advice appreciated.
From Beryl Gilligan
A: You will not benefit from the increase in the Category A inheritance tax free threshold to €420,000 from €400,000 previously.
When it comes to assessing liability to inheritance tax – or capital acquisitions tax as it is more formally called – the key date is the date of death, not probate. Whatever limit was in place when your mother died is the one that applies to you.
In this case, given her recent passing, you will be able to receive up to €400,000 free of tax. This threshold also covers anything you might have received from your father in inheritance if he has died previously. – DC
Childcare
Q: I understand it has been confirmed that from September next year the maximum childcare cost per month is €550, reduced from the current €730 maximum payment monthly.
I am in reciept of full National Childcare Scheme grant, 45 hours and my son (one year and a half) attends a participating creche in Dublin City.
However, I pay €920 monthly. Can anyone explain to me why this is? I am in a WhatsApp group of mums with children in various creches in Dublin and only one mum is currently paying €730, all the others are €800-900+.
Thank you for keeping my name anonymous. I don’t want to be seen as a trouble maker as I was on a waitlist for over two years for a spot in this creche.
From Anonymous
A: Getting your head around childcare costs seems to be an absolute head-wrecker. My understanding is that someone in your position – with a child in creche care for between 40 and 50 hours a week – falls into Band E under core funding.
Core funding is the scheme operated by Government to subsidise creche costs as long as those creches commit to conditions – including how much they charge parents.
For the current year, which runs from September 2026 to August 2027, the maximum charge to parents under Band E is €280 a week before the National Childcare Scheme subsidy of €2.14 per hour up to 45 hours per week.
That subsidy maxes out at €96.30, bringing the weekly charge to parents down to €183.70. Multiplying this by four takes your monthly payment to €735.
Under Budget 2027, the Government says this figure will drop to €550 from September 2027 (partly on the basis of an increase in the National Childcare Scheme subsidy to €2.50 an hour).
So, in the absence of services being offered outside the parameters of core funding, or the creche offering care over longer hours, you should not be paying more than €735 a month as I understand it.
I have put your query directly to the Department of Children and we will update readers on this as soon as we have any further clarity.
I understand why parents would be nervous of putting their head above the parapet when it is so difficult to source childcare in the first place in so many parts of the State, but there seems to be no reason within the rules why you and others would be facing fees on the scale you outline. – DC
Education
Q: Is there a reduction in college fees or just in disregard amount?
From Nick
A: A €150 “permanent” reduction in college fees was announced by Minister for Public Expenditure Jack Chambers. That would bring them down to €2,850 from the current €3,000. This will not kick in until the next academic year.
The disregard measure was simply working in tandem with this cut to ensure you can claim relief at 20 per cent on fees for a second or more children attending third level. – DC
Pensions
Q: Any changes to private pension caps?
From Paul
A: There has been no change to the maximum annual income cap (currently €115,000) which is used to calculate relief on pension contributions.
However, a change to the standard fund threshold was announced in the budget, but we will need to see the detail in the Finance Bill to understand the effect of this change. – BP
Childcare
Q: Has their been an increase in the National Childcare Scheme core universal subsidy to parents?
From Gavin
A: The National Childcare Scheme subsidy will increase from €2.14 to €2.50 per hour for children in early years, junior infants and senior infants for up to 45 hours per week. However, this will not take effect until September 2027. – RG
Income tax
Q: My husband and I got married last year and we are still assessed individually for income tax purposes. My question remains the same irrespective of the increase in the standard rate of tax threshold from €44,000 to €46,500 and is as follows.
I earn €93,000 gross salary, with a performance bonus this year of €23,500, pension contributions of 5 per cent on my gross income, health insurance as a benefit in kind to the value of €1,785.72 and a Christmas bonus of approximately €1,615.
My total package is €124,288.60. My husband’s gross salary is approximately €67,000 and contributes 8 per cent of the gross to his pension.
Based on the amount we are earning (both individually and when aggregated), I don’t think there is any use in us being jointly assessed for income tax purposes but I would be very grateful if this could be confirmed – just in case we are paying some extra tax when being individually assessed.
From Adrianna Keenan
A: Based on the information provided, there would not be a tax saving if you were jointly assessed for income tax purposes.
You will both benefit from the increase in the standard rate band of €2,500, the personal tax credit increase of €125 and the USC changes.
I have attached a link to the PwC calculator which will give you a more accurate calculation of your tax savings based on your circumstances. – BP
Capital Taxes
Q: When will the reduction in capital gains tax come into effect?
From Bernie McBride
A: The capital gains tax rate change comes into effect today. Therefore, any gains made on disposals from today will be subject to capital gains tax at 31 per cent. Please note the reduced rate does not apply to gains made on the disposal of development land. – BP
Defence
Q: How much has defence spending increased by?
From Killian Gavin
A: Funding to the Department of Defence has been increased by 9 per cent to address its recruitment deficit and to fund the delivery of four new helicopters and a new long-range military radar system.
The record €1.6 billion package will support the recruitment of 850 permanent members of the Defence Forces, Minister for Public Expenditure Jack Chambers said in the Dáil, as well as help with the purchase of new equipment. – RG
Investment Scheme
Q: Why can’t Ireland have the 27-year-old UK individual savings account that UK Labour introduced in 1999: £20,000/year investment limit and all gains tax-free. Simple. Low fees.
Harris complicates it and average Irish investors lose tens of thousands of euros over a lifetime to 1 per cent tax drag and 1-2 per cent high provider fees since providers are forced to administer this tax.
Why can’t FF/FG get rid of deemed disposal despite the 2024 Funds Sector Report and rhetoric from Harris. Dragging their heels.
From Alan Doyle
A: Certainly the Government has adopted a fairly cautious approach to the investment limits allowed under this new personal investment account scheme.
Minister for Finance Simon Harris did make the point in his post-budget press conference that, in reality, not many people will have more than €12,000 a year to put into such schemes – or €24,000 for a family.
This presumably refers to the “squeezed middle” the Government loves to say it is looking to help out.
They did look at the UK individual savings account scheme but clearly decided to go for a variation of that but more in line with the Swedish scheme, without buying into the unlimited contributions which are a feature of the Swedish scheme – cautious, as I said.
As for deemed disposal, it was always likely to be at least a year too soon for fundamental action there.
Deemed disposal was initially put in place as a measure to stop the “gross roll-up” investment tax regime being used for tax avoidance purposes following Revenue pressure. Action is promised but I would expect a lot of study and reports before that happens. – DC
Income Tax
Q: What is a married couple’s cut off rate for higher earners? For 2026 it was €53,000?
From Sarah
A: The married couples (one income) standard rate band has increased by €2,500 from €53,000 to €55,500. The personal tax credit has also increased by €125 and there is a small change to USC which is favourable.
I have attached a link to the PwC calculator which will give you a more accurate calculation of your tax savings based on your circumstances. – BP
Social Welfare
Q: [What is happening with the] living alone allowance?
From Eddie Teehan
A: The State pension has increased by €10 per week and the Living Alone Allowance has increased by €3 per week. The Fuel Allowance has also increased by €5 per week. – BP
Income Tax
Q: As a pensioner who has recently received an increase in my UK state pension, has the tax-free allowance of €18,000 increased for pensioners in receipt of state pensions, Irish contributory and UK?
From Jane
A: That income exemption limit has been unchanged over many years. The focus of successive governments seems to have been on keeping people out of the higher 40 per cent tax rate rather than raising the income exemption limit.
The only real change for you is the €125 increase in both your personal tax credit and the earned income or PAYE tax credits, a total of €250. – DC
Investment Scheme
Q: What does tax free mean in relation to the investment account? Does it mean there is no capital acquisitions tax on capital gains?
Can you continue investing €1,000 after five years and not be liable for capital acquisitions tax but you pay 1 per cent tax on the balance of the investment over €50,000?
From Frank T
A: Budget 2027 introduces a new investment account which will be launched by providers on or after July 1st, 2027. The account will be available to Irish resident individuals aged 18 or over who hold a PPS number.
The account will include a flat rate 1 per cent tax applied annually to the value of the account above €50,000. No other Irish taxes should apply to the account. The maximum contribution to the account in a particular year will be €12,000.
All tax reporting and the payment of any tax due will be managed by the providers. We will have to wait for the Finance Bill to see more detail on the investment account. – BP
Housing
Q: Nothing about the Apartment And Duplex Defects Remediation Scheme? Seems like we have all been forgotten again.
From Ciaran
A: It did not get specific mention in the Ministers’ speeches but there is provision in the budget arithmetic for remediation of building defects, which I presume will at least in part be directed at the scheme you mention.
These include “over €750 million to address specific housing needs, including adaptation grants for homes, retrofitting of additional social homes, remediation of homes affected by defects and expanded State-owned temporary accommodation capacity”.
The Department of Housing budget also includes provision for €948 million to be spent under the “Other Housing Capital Programme”.
This is to “support the continued expansion of housing remediation programmes, funding an expected higher volume of defective concrete block remediations, the completion of remaining pyrite cases, and the anticipated commencement of the statutory apartment defects remediation measures nationwide” among other things. – DC
Investment Scheme
Q: On the personal investment accounts, are they open to children too?
From Stephen
A: For now, no. As it stands, the accounts can be opened only by someone who is 18 or older with an Irish PPS number.
However, Minister for Finance Simon Harris did hold out the prospect last night at his post-budget press conference that these accounts might be available to children at some later point. – DC
Income Tax
Q: The old age credit appears still stuck on the odd amount of €490 for two people. Why do they not raise this to €500? Why does this credit not get more attention?
From Thomas
A: I can only assume the Government decided to focus their firepower on the increase in State pension weekly payments this time around.
As you say, while the main tax credits – the personal credit, the PAYE credit and the earned income credit for those filing as self-employed – all went up by €125, which is more than had originally been expected.
There was no move on the age tax credit which applies to people who are 65 or older. – DC
Transport
Q: Has there been any extra funding provided to expand rail or bus services?
From Conor
A: The Government announced there would be capital funding of €4.2 billion to invest in roads and public transport in 2027.
This includes progression of the DART+ and BusConnests programmes, including continued construction of Core Bus Corridors. – RG
Social Welfare
Q: Just wondering if there’s a Christmas bonus? Haven’t heard anything about it.
From Anonymous
A: The Department of Social Protection has confirmed the Christmas bonus will be paid to 1.4 million long-term social welfare recipients. – DC
Investment Scheme
Q: What is the interest rate in the new investment scheme?
From Maria
A: We’re a long way from that yet – the accounts will not even be available until July of next year. But your question also highlights one of the things people are going to have to familiarise themselves with under this new scheme.
This is not like a bank account or An Post savings cert that offers a set rate of interest; these will be investments in things like shares and bonds.
And the investment gain will be determined by what investments or fund you pick and how they perform. You could do very well or, if unlucky with market volatility, you could lose money. So the concept of “interest rate” does not really apply. – DC
Housing
Q: Has there been any meaningful changes in the situation for people renting? Not the Rent a Room scheme, but the cost of renting and availability of rental properties itself?
From E
A: The only real change in Budget 2027 is the €150 increase in the rent tax credit from €1,000 to €1,150 for a single person and by €300 to €2,300 for a couple from January.
Other than that, no measures were announced to affect the cost of renting or the availability of property apart from the Rent a Room scheme you mentioned.
This has been extended to include standalone buildings in people’s gardens so, in that sense, it might make more properties available, but that is it. – DC
Pensions
Q: As a public servant retiree on a low to moderate pension with no other benefits or pensions, are there any advantages in this budget that will benefit and raise my income?
From Bernie
A: The State pension has been increased by €10 per week. There have been tax changes that you might benefit from such as the increase in the standard rate band by €2,500, and also the personal tax credit has been increased by €125.
I have attached a link to the PwC calculator which will be able to give you a more accurate calculation of the tax savings based on your circumstances. – BP
Childcare
Q: For the childcare increase for up to senior infants, is there a National Childcare Scheme increase from €2.14?
From Eoghan
Yes, the National Childcare Scheme subsidy will increase from €2.14 to €2.50 per child for up to 45 hours per week. However, this will not come into effect until September 2027. – RG
Housing
Q: Why raise the Help to Buy rebate by €5,000 while not adjusting the €500,000 property price cap?
The scheme remains redundant to majority of buyers in Dublin, commuter towns and other cities across the country. The extra €5,000 does not unlock any new homes or help affordability?
From Adam
A: It is a little puzzling alright. There was no massive pressure to increase the value of the Help to Buy relief.
Where there was some concern was this €500,000 cap, given that properties in many parts of Dublin and surrounding counties are no longer available to first-time buyers using Help to Buy as they are priced above that level.
Yet the Minister has raised the value of the relief but left the cap in place. As you say, with the cap on property values in place, the extra €5,000 relief does not “unlock any new homes” for first-time buyers.
It remains to be seen whether this will be amended come the Finance Act but, as it stands, the Minister’s choice serves only to draw attention to the limitations of the scheme rather than its generosity, which seems an odd choice. – DC
Investment Scheme
Q: Can I open an investment account in my child’s name and use it as a future investment fund for them and invest the maximum annual exempt inheritance?
Given any current savings scheme for them would be subject to deemed disposal etc.
From Dara McGann
A: No, that will not be allowed. Access to these new personal investment accounts will be limited to people over the age of 18. – DC
Tax
Q: I am retired and have a pension of €56,000. My husband earns €70,000. How will will we benefit from budget tax wise?
From Maria
A: The budget announced an increase in the standard rate cut off point, meaning you will pay less at the higher income tax rate of 40 per cent.
In addition to this, they have increased the personal tax credits, employee tax credit and earned income tax credits by €125.
As everyone’s circumstances are different, you may input your personal details to the income tax calculator to find out how the budget changes directly impact you.
This will compare your 2026 take home pay to the 2027 take home pay which is a useful tool. – RG
Education
Q: I have three children in university, and I’m paying rent and fees for them. No SUSI grants due to us having saved hard for this time. Anything in this budget for us?
From Geraldin
There are a couple of things here... and a few unknowns. Minister for Public Expenditure Jack Chambers did announce a “permanent reduction to the student contribution fee of €150”, which brings the fee down to €2,850 from €3,000.
The disregard of the first €3,000 in fees before tax relief can be claimed will be adjusted to match this. So you will, as now, be able to claim tax relief against the fees of your second and third children at 20 per cent.
Also, as now, you will be entitled to a rent tax credit if you’re paying their rent – at least on one property.
Chambers in his speech also said: “I will also provide for enhanced and new student contribution fee grants for families with more than one child attending higher education.”
What that means we will have to wait to find out. SUSI maintenance grants will increase by 4.5 per cent. The Minister said the grant changes will benefit over 150,000 students and their families.
The SUSI grant increases and rent tax credit changes – it rises by €150 for a single person to €1,150 and by €300 for a couple to €2,300 – kick in from January. – DC
Housing
Q: Is the rent tax credit increase applicable to 2026?
From David
The rent tax credit is increasing by €150 to €1,150 for a single person and by €300 to €2,300 for a couple.
Those increases will apply only for the 2027 and 2028 tax years – not this year – so you will be able to claim only at the existing level – €1,000 for a single person or €2,000 for a couple – for 2026. – DC
Housing
Q: Will the increased Help to Buy not just result in increased house prices? Has the Government determined the pros of doing this will outweigh the cons?
From Fiona
A: There is an ongoing debate as to whether the Help to Buy scheme is of genuine assistance to aspiring first-time homebuyers or simply something that only further inflates property prices.
From a Government perspective, it is certainly seen as giving the impression of positive action to support homebuyers.
One issue with the latest increase in the amount available under the scheme is that the €500,000 cap on properties that it applies to remains in place, effectively locking swathes of homebuyers in Dublin out of the market. – DC
You can submit any questions you have on the form below.
Investment Scheme
Q: Now that the Government has brought out this investment scheme, do you believe it is likely the momentum to do away with the deemed disposal rule for exchange traded funds will stall, or do you still see progress towards eventually scrapping that rule?
From Liam Sweeney
A: The Government has committed even in this budget to “continue the work on the wider [investment] regime, including the rate of taxation, deemed disposal and the administrative burden facing investors” with Minister for Finance Simon Harris also saying: “I intend to make further progression removing barriers to investment.” – DC
Good morning and welcome to our live Budget 2027 Q&A.
Here we are going to dig down into the detail of what it all means for you with Dominic Coyle, Deputy Business Editor at The Irish Times; Beryl Power, tax director at PwC Private Clients; and Ruth Gilligan, manager at PwC Private Client Services.
Income Tax
Q: Was there any indication the Mortgage Interest Tax Credit would be extended?
From Stephen
A: The mortgage interest tax credit was conspicuous by its absence from the budget speeches. The credit is due to expire at the end of this year and, despite the fact that mortgage rates are now rising again, it appears that it may be allowed to expire. – DC
Solar panels
Q: What does this budget mean for homeowners with solar panels? Many people have installed solar panels at considerable cost, banking on selling a certain amount of electricity back to the grid, to help cover the cost.
From Nuala
A: The exemption from income tax, USC and PRSI for the microgeneration of electricity is being increased from €400 to €600 for profits arising to an individual who generates energy from renewable resources for their own consumption.
The exempted profits are those arising from the domestic generation of electricity which is supplied to the grid. – BP
Pensions
Q: Was there any movement in the €115,000 relevant earnings cap when applying the age-based percentage limits for tax-free pension contributions? Did the percentage movements change?
From Stephen
A: There was no change in relation to tax relief on contributions to private pension schemes – either in the percentage of income you can put into a pension in a year for tax relief purposes or the €115,000 cap on earnings against which those percentages apply. – DC
Income Taxes
Q: The income tax band has been raised to €46,500. Is this double indexed to make up for no indexation in last year’s budget?
From Andreea
A: The Government is not likely to admit that the scale of the increase this year has been influenced by their failure to do anything on the standard rate band in the last budget.
However, Minister for Finance Simon Harris did say: “I want people at home to know that we’ve heard loud and clear the importance of a personal income tax package.”
The €2,500 increase is slightly more than had been expected, but only slightly. Anything below a €2,000 increase would have been seen as a letdown. – DC
Investment Scheme
Q: How much control do individuals have into the investments made under the scheme?
From Katie O’Shaughnessy
A: We don’t yet know how products under the scheme will be designed. They will not become available until July of next year.
However, you would expect that there will be a fair degree of choice among providers in the range of investments and investment approach.
And it also appears there will be nothing to prevent people moving investments from one product to another. – DC
