Personal Tax Returns

Income Tax, Corporation Tax, EII, SURE, Withholding Tax, Taxation of Investments, Deemed Disposal

The Finance (No.2) Bill 2026 was published today, 19th October 2026. This seventy-nine-section Bill gives legislative effect to the tax measures announced in Budget 2027. These significant changes will directly affect businesses, investors, property owners and individual taxpayers alike. Specifically, the legislation introduces a new Individual Investment Account. It revises the rules on interest deductibility. Furthermore, the Bill updates the R&D Tax Credit, the Knowledge Development Box and start-up relief. It also revises Pillar Two regulations.  In addition, the Bill establishes a new framework for mandatory electronic invoicing and digital VAT reporting. It also introduces amendments to preliminary Corporation Tax requirements and provides greater flexibility for employers under the Enhanced Reporting Requirements (ERR).

INCOME TAX

Income Tax Bands and Credits

Section 3 confirms the key income tax changes starting in 2027. The single person’s standard rate tax band rises by €2,500 to €46,500, with a matching increase to €55,500 for married couples and civil partners with one earner. Additionally, the main personal tax credits, including the Personal, Employee, and Earned Income credits, each increase by €125 to €2,125. The Home Carer Tax Credit rises to €2,050.

Universal Social Charge (USC) Rates and Bands

Ireland’s Budget 2027 increased the 2% Universal Social Charge (USC) band ceiling from €28,700 to €30,300, effective 1^st January 2027. Section 2 of the Finance Bill confirms this €1,600 increase to align with the new National Minimum Wage of €14.94 per hour. By adjusting the tax threshold, the aim is that full-time minimum wage workers do not trigger a higher USC rate on their baseline earnings.

Taxation of Investment Products

The Bill eases the tax treatment of several existing investment products. This measure forms part of a broader Government agenda to make retail investment simpler and more accessible. Specifically, Section 29 reduces the tax rate on income and gains from 38% to 35%, effective from 1^st January 2027. This 35% rate applies to domestic and certain foreign life assurance policies. It also applies to Irish-domiciled investment funds. Equivalent offshore funds in EU, EEA, and DTA partner states will benefit as well.

Separately, Section 28 introduces a clearer regime for investment fund units held through recognised clearing systems. This change directly impacts Irish domiciled exchange-traded funds (ETFs).

Under this section, these investors will no longer be taxed under offshore fund provisions. Consequently, the investment undertaking does not need to operate investment undertaking tax (IUT). Instead, Irish resident investors will self-assess their own tax liabilities at the new 35% rate.

Importantly, this regime retains the existing eight-year deemed-disposal concept.

Housing Reliefs

The Bill introduces several positive changes for renters, homebuyers, and homeowners.

First, Section 4 increases the maximum Rent Tax Credit for the 2027 and 2028 tax years. Single renters will see the credit rise to €1,150 per year. Meanwhile, jointly assessed couples/civil partners or widowed individuals will receive up to €2,300.

Second, Section 17 extends the Help to Buy (HTB) scheme. It also increases the maximum relief by €5,000, raising the threshold from €30,000 to €35,000. This higher limit applies to contracts signed or self-build mortgage tranches drawn down between 7^th October 2026 and 31^st December 2029.

Finally, Section 16 expands Rent-a-Room Relief from 1^st January 2027. The income exemption limit increases from €14,000 to €16,000. This cap now includes income from qualifying “auxiliary dwellings” like granny flats or garden rooms.  To qualify, these auxiliary structures must be installed between 27^th July 2026 and 31^st December 2030. They must also comply with specific planning regulations. Furthermore, claiming this relief will not negatively impact your Principal Private Residence CGT relief or mortgage interest relief.

Tax relief for third level fees

The Bill improves income tax relief for individuals paying qualifying third-level tuition fees. This relief is available for approved courses at approved colleges.

Specifically, Section 6 aligns the tax relief with the current Student Contribution Fee rate. It achieves this by reducing the baseline “disregarded amount” that is ineligible for relief. This change takes effect from the 2026 year of assessment onwards.

For full-time courses, the disregarded amount falls by €650, dropping from €3,000 to €2,350. For part-time courses, the amount drops by €325, falling from €1,500 to €1,175.

Consequently, this change effectively increases the tax relief available to families. The lower €1,175 disregard amount also applies to additional qualifying family members.

Childcare Services Relief

The Bill introduces significant improvements to Childcare Services Tax Relief. This relief provides a valuable tax exemption for individuals who mind children in their own homes.

Specifically, Section 7 increases the exemption ceiling from €15,000 to €20,000 in gross annual income. This means qualifying childminders can earn up to €5,000 more which is exempt from Income Tax and USC. This change will apply for the 2027 tax year and all subsequent years.

Furthermore, the Bill removes the rigid limit on the number of children cared for at any one time. Previously, the scheme capped this at three children.  Instead, childminders can now care for more children. However, they must still comply with prevailing childminding regulatory requirements. This includes official registration on the register of prescribed early year services where required.

Investment Account

Sections 26 and 27 introduce the Individual Investment Account (IIA). Launching on 1^st July 2027, which aims to make retail investing simpler and more accessible. Crucially, the account completely bypasses the eight-year deemed disposal rule.

Key Rules for Investors

The IIA is available to Irish tax-resident individuals aged 18 and over who hold a PPSN.

Strict structural rules apply to the scheme:

• Account limits: Individuals may only hold one account at a time in their sole name.

• Contribution cap: Annual contributions are capped at a maximum of €12,000.

• Residency checks: Investors must pause contributions if they become non-resident.

The New Tax Framework

The IIA replaces standard taxes with a flat 1% annual Investment Account Tax (IAT). This tax applies only to the average account value above a €50,000 tax-free threshold.

Providers will calculate the account value daily to find the average values for the purposes of calculating any tax that may arise. All income and gains within the account are exempt from further income tax, USC, or capital gains tax. Furthermore, individuals do not need to report these gains on self-assessment tax returns. However, investment losses cannot be claimed.

Provider Obligations & Eligible Assets

Only authorised financial firms like regulated banks, investment firms, and insurers can offer IIAs. Providers must register with Revenue in advance. Crucially, they will handle all administration, daily valuations, and tax collection.

Eligible investments include standard shares, bonds, UCITS, and insurance-based investment products. However, the scheme explicitly excludes personal portfolio policies, structured UCITS and shares from employee share schemes.

Succession Farm Partnership Tax Credit

Section 23 introduces major upgrades to the Succession Farm Partnership (SFP) scheme. This tax credit serves as an income tax incentive to encourage farmers to transfer their business to successors in a timely manner.

For partnerships registered on or after 1^st January 2027, the annual tax credit doubles from €5,000 to €10,000. This enhanced credit remains available for up to five years.

Furthermore, the legislation removes the rigid three-year holding period before an asset transfer can take place. Previously, farmers had to wait three years before transferring at least 80% of farm assets.

Finally, the Bill updates the clawback rules to match the higher tax credit. The related income cap will double from €125,000 to €250,000 from 1^st January 2027.

Alongside the partnership changes, farmers will benefit from extended safety incentives. The accelerated capital allowance for farm safety equipment is officially extended to 31^st December 2029. In addition, the legislation introduces an expanded list of qualifying safety equipment.

For full information please click: https://www.gov.ie/en/department-of-finance/press-releases/department-of-finance-publishes-finance-bill-no2-2026/

For all your Income Tax advisory and tax compliance requirements, please contact us at info@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Key updates to the 2025 ROS Form 11 manual introduce new rules for rental income reliefs and personal tax credits

Overview of the 2025 ROS Form 11 Changes

Here are the key updates you need to know:

Key Updates for Landlords and Property Owners

• Retrofitting Rental Properties Relief (RRPR): Jointly assessed spouses can now claim RRPR for different properties. You can enter specific details for both properties directly into the Property Details section.

• Farmland Leasing Exemption: Revenue updated the Rental Income panel for this exemption. You will now see additional selection boxes to complete your claim.

• Residential Premises Rental Income Relief (RPRIR):

• • Property Sales: Did you claim RPRIR in 2024 but sell the property since then? You must notify Revenue via MyEnquiries to process your tax clawback.

• • Non-Resident Filers: Non-residents must now complete the Worldwide Income field on the Personal Details panel. This ensures Revenue apportions your relief correctly.

Changes to Capital Gains Tax (CGT) and Retirement Relief

• Capital Gains Tax (CGT) Retirement Relief:

• • Section 599 Deferrals: New fields allow you to defer CGT charges for relevant disposals under Section 599.

• • Clawbacks: Revenue added new fields to declare previously deferred CGT. This applies if you sold an asset within 12 years of the original disposal.

• • New Details Required: Existing fields now require the exact consideration amount and the precise date of disposal for Section 598 and 599 claims.

• CGT Self-Assessment: The form features new sections to record tax deferred during the period. You must also use these sections to report previously deferred tax that is now due.

New Income Tax Exemptions and Reporting Rules

• Musical Instrument Exemption: Do you earn exempt profits from making, maintaining, or repairing musical instruments? You must now report these profits under ‘De Minimis – EU State Aid’ on the Personal Details panel.

• Medical Partnerships: A new field in the Trade Details section requires your attention. You must confirm your joint election and input the exact name of the medical partnership.

• PRSA Over contributions: Did your employer contribute more than the maximum allowable limit to your PRSA? You must include the excess amount in the ‘gross amount of taxable income’ field on the PAYE/BIK/Pensions panel.

Personal Tax Credits & Reintroduced Incentives

• Split Year Treatment: Taxpayers claiming Split Year Treatment for 2025 face new requirements. You must now include these specific residency details directly on the return.

• Personal Tax Credits: The Personal Tax Credits panel reflects the increased credit values from the Finance Act 2025. The system applies these new rates automatically.

• Home Renovation Incentive (HRI): Revenue has reintroduced the HRI section. This allows you to claim unused relief balances that you carried forward from previous years.

• Sports Body Donations: Donors can now choose how to use this relief. You can claim the relief yourself or pass it directly to the sports body. Furthermore, Revenue extended this relief to National Governing Bodies (NGBs) for qualifying projects.

• High-Income Individuals: The RR1 panel is now simpler. Revenue greyed out the fields that are no longer available or have been removed.

For full information, please click: https://www.revenue.ie/en/tax-professionals/ebrief/2026/no-1272026.aspx

For help filing your Form 11 Tax Return, please contact us at info@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Filing your 2025 Form 11 via the Revenue Online Service (ROS). Make sure to declare your 2026 Preliminary Tax alongside your 2025 self-assessment to avoid interest penalties

Ireland Form 11 Income Tax Guide 2025: Deadlines & Updates

This brief guide provides Irish Revenue guidance on filing 2025 Form 11 Income Tax Returns, highlighting the crucial October and November 2026 deadlines. Drawing on official Revenue eBriefs, Tax and Duty Manuals, and recent Tax Appeals Commission determinations, we outline key obligations, updated form features, and practical compliance considerations for self-assessed taxpayers and tax agents.

2025 Form 11 Filing Deadlines and ROS Extensions

The statutory pay and file deadline for the 2025 Form 11 Income Tax Return is 31^st October 2026.

However, Irish Revenue has confirmed an extended deadline of Wednesday, 18^th November 2026 for self-assessment taxpayers who use the Revenue Online Service (ROS). To qualify for this extension, you must complete both of the following actions through ROS:

1. File your 2025 Form 11 tax return.
2. Pay your 2025 income tax balance and 2026 Preliminary Tax.

 Critical Compliance Note: If you only file or only pay through ROS, the extension is void. The standard 31^st October 2026 deadline will apply, potentially resulting in late filing surcharges.

Capital Acquisitions Tax (CAT) Extension

The same extended ROS deadline of 18^th November 2026 applies to Capital Acquisitions Tax (CAT) returns and payments. This applies to gifts or inheritances with valuation dates falling in the year ending 31^st August 2026.

Key Updates to the 2025 ROS Form 11

The 2025 ROS Form 11 has been active since 1^st January 2026, with major system updates deployed in April 2026. Taxpayers should note the following critical changes and tax credit increases:

Increased Personal Tax Credits for 2025

• Personal Tax Credit: Increased to €2,000
• Employee Tax Credit: Increased to €2,000
• Earned Income Tax Credit: Increased to €2,000
• Widowed Person Tax Credit: Increased to €2,540
• Home Carer’s Tax Credit: Increased to €1,950

Tax Bands, USC, and PRSI Rate Changes

• Income Tax Rate Bands: The standard rate band for single persons is now €44,000 at 20%.
• USC Thresholds: Updated to reflect the latest budgetary changes.
• PRSI Rate: The blended rate of 4.125% does not apply across all classes. It only applies to people paying PRSI through the Revenue self-assessment system (like the self-employed under Class S). For standard PAYE employees (Class A), payroll software does not use a blended rate; it splits the year into 4.10% (January to September) and 4.20% (October to December).

New Capital Gains Tax (CGT) Fields

The Capital Gains Tax panel features new sections allowing self-assessed taxpayers to:

• Request a deferral of CGT payments.
• Declare previously deferred CGT that is now due.

For clarity:

Requesting a deferral of CGT payments: This allows self-assessed taxpayers to claim a formal deferral of a liability directly on the return (such as the CGT deferral available on a business or farm transfer to a child under Retirement Relief).

Declaring previously deferred CGT that is now due: This enables taxpayers to report when a past deferral condition has failed or expired (such as a child selling a transferred asset before a required 12-year holding period), meaning the clawed-back tax has crystallised and fallen due.

Rental Income and Home Renovation Reliefs

• Residential Premises Rental Income Relief (RPRIR): Under Section 480C TCA 1997, landlords can reduce tax on residential rental income by up to €800 for the 2025 tax year.
• Home Renovation Incentive (HRI): The HRI section has been reinstated on Form 11 to allow taxpayers to claim unused balances carried forward.

For Clarity:

• RPRIR Retention Period: To keep the €800 relief for 2025, you must remain a landlord of that qualifying property for a full four-year period. If you sell or stop renting it out earlier, the relief will be clawed back by Revenue.

• RPRIR Registration: The rental property must be fully registered with the Residential Tenancies Board (RTB) on or before 31^st December 2025.

• HRI Limitation: This entry on Form 11 allows you to draw down the remaining balance of an old credit. You cannot claim any new renovation works completed in 2025 under this specific incentive.

2026 Preliminary Tax and Statement of Net Liabilities

To avoid interest penalties, self-employed individuals must calculate and pay their 2026 Preliminary Tax by 31^st October 2026 (or 18^th November 2026 via ROS).

How to Calculate Preliminary Tax

Your payment must equal at least:

• 90% of the final liability for the 2026 tax year, OR
• 100% of the final liability for the 2025 tax year.

The Risks of a “Nil” Preliminary Tax Declaration

If you select “Nil” for your preliminary tax, you are officially declaring to Revenue that you anticipate your total tax liability for the upcoming year will be zero.  If you underpay your preliminary tax (or declare “Nil” when you actually owed tax), you fail the statutory safe harbours.   Revenue will treat the underpaid portion as overdue from the original deadline. Interest will accrue daily at a rate of 0.0219% backdated to that original due date.

When filing electronically via ROS, the Statement of Net Liabilities (SNL) is a screen that appears at the very end of the digital Form 11 submission process. You must complete the self-assessment panel, calculate the SNL, and sign/submit them together in the same session to finalize your return.

For further information, please click: https://www.revenue.ie/en/tax-professionals/ebrief/2026/no-1272026.aspx

For help filing your Form 11 Tax Return, please contact us at info@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Help Filing Form 11 Tax Return. Income Tax. Personal Taxes

If you’re a newly self-employed business owner, you are now officially part of the self-assessment tax system. This means you will need to file a Form 11 tax return with Revenue, on an annual basis. This annual filing requirement also applies to you if you:

• operate outside the PAYE system as a self-employed individual, sole trader, or subcontractor

• are a proprietary Director

• generate non-PAYE earnings from freelance work, “nixers,” investments, or dividends which exceed €5,000 in a tax year.

• Your gross non-PAYE income exceeds €30,000

• generate rental income from residential or commercial properties

• receive foreign income

• hold offshore funds, ETFs or other investments on which you receive income or gains.

The Pay and File deadline for the 2025 Income Tax Return Form 11 is 31st October 2026.

There is an extension if you pay and file on the Revenue Online Service. This extended deadline is Wednesday 18th November 2026.

For further information, please click: https://www.revenue.ie/en/tax-professionals/ebrief/2026/no-0342026.aspx

For full and comprehensive tax advice and assistance completing your Tax Returns, please contact us at info@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.