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UK Autumn Budget 2025, Capital Gains Tax, Resident and Non resident individuals, CGT and Corporation Tax.

Today, Wednesday, 26^th November 2025. the Chancellor, Rachel Reeves, announced a number of changes to Capital Gains Tax (CGT), effective immediately.  The change, the majority of our clients have reacted to, is the reduction of the Capital Gains Tax Relief business owners/shareholders receive when they dispose of shares in their company to an employee ownership trust (“EOT”), from 100% to 50% of the gain on the shares being disposed of.

Before the UK Autumn Budget, provided certain criteria were met, the Capital Gains Tax Relief allowed business owners/shareholders full relief from any CGT arising on a disposal of their shares to an EOT.

From today, those individuals selling to an EOT will now be liable to CGT. It is important to note that it will not be possible to claim Business Asset Disposal Relief (“BADR”) or investors’ relief on the 50% of the gain that’s taxable.

For further information on Employee Ownership Trusts (EOT) please click: https://www.gov.uk/government/publications/capital-gains-tax-employee-ownership-trusts/capital-gains-tax-employee-ownership-trusts-relief-reduction

Incorporation Relief

Incorporation Relief allows sole traders or partners in a partnership to transfer their business, as a going concern, to a company, in exchange for shares, without triggering a Capital Gains Tax liability, provided certain conditions are met.  This Relief can reduce or eliminate the chargeable gain arising on disposal.

From 6th April 2026, Incorporation Relief will no longer apply automatically and in order to claim the Relief, the following must be provided to HMRC: (i) the type/nature of the business being transferred, (ii) full details of the transaction as well as (iii) supporting calculations and figures.  Previously, Incorporation relief was given automatically on the transfer of a business to company, wholly or mainly, in exchange for shares. This new measure will effect transfers of businesses made on/after 6^th April 2026.

For further information on Incorporation Relief, please click: https://www.gov.uk/government/publications/capital-gains-tax-incorporation-relief-claims/capital-gains-tax-incorporation-relief-claims-process

Anti avoidance – Share Exchanges and Reorganisations

From 26^th November 2025, the new legislation targets situations where an individual, company or trust enters into an arrangement, the main or one of the main purposes of which, is to secure a tax advantage, not otherwise available.  In other words, the focus of the amendments to the anti-avoidance measures, in relation to share exchanges and reorganisations, is on the purpose or the reason for the reorganisation and whether or not the main reason for the reorganisation was for the purposes of tax avoidance. The aim of this amendment is to make the scope of the relief more effective.  It should not adversely affect anyone who does not benefit from the arrangements.

For further information on the new anti-avoidance that applies to Share Exchanges and Company Reorganisations, where the main purposes is tax avoidance, please click: https://www.gov.uk/government/publications/capital-gains-tax-share-exchanges-and-reorganisations/capital-gains-tax-anti-avoidance-for-share-exchanges-and-reorganisations

Non-resident Capital Gains Tax

The rules around Non-Resident Capital Gains Tax are being tightened.  Loopholes for indirect disposals have been closed in relation to non-resident capital gains tax.  Non-UK residents are liable to UK Capital Gains Tax in relation to chargeable gains arising on the disposal of interests in UK land and holdings in “property rich” entities.  From 26^th November 2025, the definition of property-rich entities is to change in relation to Protected Cell Companies (PCC).

Protected Cell Companies are a type of company which is divided into a number of separate cells. The assets and liabilities of each cell are segregated and kept separate from each other cell.  From 26^th November 2026, when determining whether a company derives 75% of its value from UK land, each cell of a PCC must now be considered separately.  In other words, each individual PCC cell must be examined for “property richness” purposes as opposed to the entire PCC as was the case prior to 26^th November 2025.

This Budget change will apply to disposals made by PCCs on/after 26th November 2025.

For further information on Non-Resident Capital Gains Tax, please click: https://www.gov.uk/government/publications/capital-gains-tax-non-resident-capital-gains/non-resident-capital-gains

Final points:

• The annual Capital Gains Tax exempt amount will remain at £3,000 for the 2026/27 tax year.

• The rate for individuals claiming Business Asset Disposal Relief will increase to 18% for disposals made/after 6th April 2026.

For further information in the 2025 UK Autumn Budget, please click: https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html

We provide a full and comprehensive UK tax service.  If you are looking for UK tax advisory or compliance services, please contact us at queries@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.

UK Autumn Budget 2025, Income Tax, Personal Tax, Capital Gains Tax

The Chancellor, Rachel Reeves, delivered her Autumn Budget today, Wednesday, 26^th November 2025.  This article provides an overview of Personal Taxes under the following headings:

1. Income tax and National Insurance Contributions (NICs)
2. Inheritance tax (IHT)
3. Agricultural and business property relief
4. Pensions
5. Employee Ownership Trusts (EOTs)
6. Residential property / High Value Council Tax Surcharge
7. ISA Reform

Income tax and National Insurance Contributions (NICs)

• Income tax thresholds will remain frozen for a further three years, up to 6^th April 2031. This includes the personal allowance (which will remain at £12,570), the basic rate (up to £50,270) the higher rate threshold (£50,270 to £125,140) and the additional rate threshold (above £125,140).  The personal allowance for income tax will continue to be reduced for taxpayers with a net income of over £100,000.  This will be completely lost for income over £125,140. Through “fiscal drag” a greater number of working taxpayers will be brought into the higher tax rates as salaries and wages increase.

• The property income rates apply to England, Wales and Northern Ireland only. They do not apply to Scotland. From 6th April 2027, property income will be taxed at 22% (basic), 42% (higher), and 47% (additional).

• There will be an additional 2% surcharge on the basic and higher rates of savings income and dividend income. From 6^th April 2026, the ordinary/basic and upper/higher dividend rates will rise to 10.75% and 35.75% respectively. The additional rate will remain at 39.35%. From 6^th April 2027, the savings income basic rate will increase from 20% to 22%, the higher rate will increase from 40% to 42% and the additional rate from 45% to 47%. It is important to keep in mind that (a) the starting rate for savings will remain at £5,000 until April 2031 and (b) the way in which individuals report and pay these taxes remains the same. From 6th April 2027, Allowances and Reliefs will only be applied to (i) property income, (ii) savings income and (iii) dividend income after they have been applied to other sources of income.  Interest and dividends received from assets which are held within ISAs will continue to be tax exempt.

Inheritance tax (IHT)

IHT thresholds will remain fixed for a further year to 6^th April 2031. The £1 million allowance will be frozen until 6^th April 2031, after which it will be index-linked.  The freeze on the nil-rate band (£325,000) and residence nil-rate band (£175,000) means that the personal tax thresholds will remain unchanged until April 2031.

Agricultural and Business Property Relief

The £1 million allowance for the 100% rate of (a) Agricultural Property Relief and (b) Business Property Relief will be transferable between spouses and civil partners.  UK agricultural land and buildings, which are held through non-UK companies or similar bodies, will be brought within the scope of UK inheritance tax, from 6th April 2026.

For further information, please click: https://www.gov.uk/government/publications/changes-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-changes

Pensions

From April 2029, a £2,000 cap on pension contributions, made under a salary sacrifice scheme, will be introduced. This means that both employees and employers will be subject to national insurance on contributions above this amount. Employers will need to report the amounts sacrificed via their payroll software.  Normal employer pension contributions, however, will continue to remain exempt from national insurance and there is no change to the pension tax-free lump sum, on retirement. 

For further information, please click: https://www.gov.uk/government/publications/changes-to-salary-sacrifice-for-pensions-from-april-2029

Employee Ownership Trusts (EOTs)

EOTs have been around for many years.  An EOT is a Trust, which is typically a newly incorporated company, which holds the shares for the benefit of the company’s employees.  They have been gaining in popularity, in recent years, as a means for shareholders to sell their shares to the EOT, without giving rise to a Capital Gains Tax charge. From 26^th November 2025, however, the CGT relief on qualifying disposals to EOTs is halved from 100% to 50%.

For further information, please click: https://www.gov.uk/government/publications/capital-gains-tax-employee-ownership-trusts/capital-gains-tax-employee-ownership-trusts-relief-reduction

Residential property / High Value Council Tax Surcharge

What is it?

The High Value Council Tax Surcharge (HVCTS) is a new charge on owners of residential property, in England, which is worth £2m, or more, in 2026.

When does it take effect?

The new charge will take effect from 1^st April 2028.

What about existing council tax?

In addition to existing council tax, there will be an annual charge of £2,500 per annum for properties valued at over £2m, rising to £7,500 for properties valued at over £5m.

For further information, please click: https://www.gov.uk/government/publications/high-value-council-tax-surcharge

ISA Reform

Broadly, an ISA is a savings account where tax is not charged on the interest you earn. Currently, an individual can contribute up to £20,000 each tax year into a cash ISA. Alternatively, you can split this allowance between other types of ISA.   From 6th April 2027, however, the subscription limit for cash ISAs will be limited to £12,000 for those under the age of 65 years.

In summary, from 6th April 2027:

• the annual cash ISA limit will be set at £12,000 for savers under the age of 65 years,
• the overall annual ISA limit will remain at £20,000.
• Savers aged 65 and over will continue to be able to save up to £20,000, in a cash ISA, each year.

For further information, please click: https://www.gov.uk/government/publications/tax-free-savings-newsletter-19/tax-free-savings-newsletter-19-november-2025

For further information on the UK Autumn Budget 2025, please click:

 https://www.gov.uk/government/collections/budget-2025

If you are looking for assistance in relation to UK personal tax advice or compliance, please contact us at queries@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.

Finance Bill 2025, Increased Revenue Powers, Income Tax and Corporation Tax

The Minister for Finance, Paschal Donohoe, published Finance Bill 2025 today, 16th October 2025, giving effect to the tax measures announced in Budget 2026 of last week.

Section 31 of the Bill introduces a new Section 959AX TCA 1997 to Part 41A TCA 1997. This legislation gives the Revenue Commissioners the authority to estimate corporate and income tax liabilities and serve notice in writing specifying the estimated tax due in circumstances where the taxpayer fails to file the required Tax Return within the specified return date. This estimated figure will be based on the higher of (i) the average amount of tax due on the two most recent tax returns, or (ii) €1,000.

Section 90 of the Bill amends the wording in Section 811C (4)(a) TCA 1997, which strengthens Revenue’s powers to counteract tax avoidance by expanding the scope of the legislation.  This amendment extends and enhances the Revenue Commissioners’ authority to withdraw or deny, at any time, tax advantages arising from tax avoidance transactions.  It specifically pertains to situations where an individual either takes or fails to take any other action, which directly or indirectly, seeks to obtain a tax advantage as a result of a tax avoidance transaction.

Section 93 of the Bill amends Section 638A TCA 1997.  This extends the transfer of rights and obligations under company mergers or divisions to include those arising under Part 4A TCA 1997. It provides that the Pillar Two compliance obligations, including tax payments and filings, will transfer to the successor company or companies, under a merger or division.

Section 879 TCA 1997 provides that the Revenue Commissioners may issue a notification to a taxpayer requesting that individual to deliver a tax return, in any tax year. Section 94 of the Bill amends Section 869 TCA 1997 allowing Revenue to issue such Income Tax Return Notices electronically i.e. via MyAccount or ROS.

Section 95 of the bill amends Section 959AA of the TCA 1997.  This amendment expands the Revenue Commissioners’ power to make or revise a tax assessment outside the standard four year time limit, so as to give effect to a Mutual Agreement Procedure outcome under a Tax Information Exchange Agreement, by virtue of section 826(1B) TCA 1997. Currently, under existing rules, a Revenue officer is allowed to make such an extended assessment in circumstances where a MAP is reached under a double taxation agreement.

Section 98 amends Section 959I TCA 1997 by inserting a new subsection 6 to clarify that a “chargeable person” may still make a claim for an allowance, deduction or relief even where that tax return is filed after the specified deadline date, unless, another provision in the Taxes Acts explicitly prevents the making of such a late claim.

For further information, please click: https://www.gov.ie/en/department-of-finance/press-releases/minister-donohoe-publishes-finance-bill-2025/

If you have received a notification of a level 1 or 2 Revenue Compliance Intervention or a level 3 Investigation into your or your company’s tax affairs, please contact us.  We also carry out tax health checks for companies and individuals to assist in identifying potential areas of exposure.For a full professional taxation advice and compliance service, please contact us at queries@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.

Payroll Taxes. Employee and Employer Taxes. Pension Auto-enrolment. Benefit-in-Kind (BIK)

Budget 2026 was announced on Tuesday, 7^th October 2025.  From 1^st January 2026, the National Minimum Wage for people aged twenty and over will increase, by 65 cents, to €14.15 per hour.  Other changes for employees and employers include the following:

Small Benefit Exemption

• The Small Benefits Exemption enables employers to provide tax-free benefits of up to €1,500, per employee, per year.  The benefit must be in the form of a voucher which can only be redeemed in exchange for goods and services.  In other words, this exemption from PAYE, USC and PRSI only applies to benefits that cannot be exchanged for cash, such as gift vouchers or store cards.

• Please be aware that the Small Benefit Exemption cannot be combined with salary sacrifice arrangements.

For further information, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-01e.pdf

PRSI Changes

• Employee and Employer PRSI rates will increase by a further 0.15% on 1st October 2026.

• From 1^st October 2026, the employee PRSI rate will increase to 4.35%.

• The employer PRSI rate will increase to 9.15% where weekly income is €552 or less.

• For weekly salaries/wages in excess of €552, employer’s PRSI will increase to 11.40%.

For further information, please click: https://assets.gov.ie/static/documents/cb168977/PRSI_C20260116_Contribution_Rates_and_User_Guide_-_SW_14_-_English_Version_-_January_2026_.pdf-web.pdf

USC changes

From 1st January 2026, the 2% Universal Social Charge threshold will increase to €28,700.  This is in line with the increase in the national minimum wage. Therefore, If you earn €28,700 or under, your USC rate remains at 2%.

The amount of income liable to the 3%USC rate reduces from €42,662 to €41,344.

The 2% USC rate will continue to apply until 31st December 2027 for individuals holding a full medical card and whose total income for the year is €60,000 or less.

For further information, please click: https://www.revenue.ie/en/jobs-and-pensions/usc/standard-rates-thresholds.aspx

Benefit-in-Kind

• The universal reduction of €10,000 to the Original Market Value of company cars in categories A-D as well as to all vans, will remain for 2026, then reduce to €5,000 in 2027, €2,500 in 2028 and won’t apply in 2029.

• From 1^st January 2026 a new vehicle category (A1) is being created for zero-emission cars. BIK on category A1 cars will be calculated at between 6% and 15% of the cars OMV, subject to business mileage.

• From 1^st January 2026, the highest mileage band for the Benefit-in-Kind calculation will be reduced to 48,001 km.

For further information, please click: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

Auto-enrolment

From 1^st January 2026, the Pension Auto-enrolment scheme will start.

The National Automatic Enrolment Retirement Savings Authority automatically will determine eligibility based on Revenue payroll data.  Briefly:

• Employees aged between 23 and 60 years, who earn in excess of €20,000 per year and who are not already part of a workplace pension scheme (with payroll contributions) will be automatically enrolled into this system.

• Employees earning under €20,000 per year can opt in voluntarily.

• Currently self-employed individuals are not eligible for this scheme.

• From 1^st January 2026, employees and employers will each pay 1.5% of the gross salary into the scheme. This will be the case for three years.  After that the contributions will go up to 3% (in years 4 to 6), then 4.5% (in years 7 to 9) and then 6% from year 10.

• In addition to the employee and employer contributions, the government will top up the employee’s contribution. From 1^st January 2026, for every €3 an employee contributes, the employer will also pay in €3 with the State then topping it up by €1.  In other words, the government will top up the employee’s contribution by 1/3^rd.

• Employees can only opt out after six months of enrolment. If they decide to opt out their employee contributions are refunded. Employer and state contributions, however, will remain in their pension fund.

• Automatic re-enrolment into the scheme will occur after two years provided the eligibility criteria still apply.

For further information, please click: https://myfuturefund.ie/

Accounts Advice Centre Employment tax services work with our valued clients to ensure that all payroll compliance obligations are met in the most timely and cost effective manner possible.  We specialise in payroll, employee tax services and director tax services.  For further information please contact us at queries@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.

Tax Credits. Budget 2026 Ireland. Income Tax. Personal Taxes. Tax Reliefs

Budget 2026 introduced a wide range of updates across Ireland’s tax system. The following Tax Credits and Reliefs are being extended:

1. The Rent Tax Credit is being extended for a further three years.  It is due to expire at the end of 2028.

For further information, please click link: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-credit/index.aspx

2. The income tax deduction for landlords retrofitting properties is extended for another three years.  It is available for works carried out up to 31st December 2028.

For further information, please click link: https://www.revenue.ie/en/property/rental-income/deduction-for-retrofitting-expenditure/index.aspx

3. The Income Tax Exemption for households which sell electricity from micro-generation back to the grid is extended for a further three years to 31st December 2028.

For further information, please click link: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-44.pdf

4. The Mortgage Interest Tax Relief is being extended for a further two years. Relief will be available at the standard Income Tax rate, with the maximum 2025 relief capped at €1,250 per property and €625 per property for 2026.

For further information, please click link: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/mortgage/index.aspx

5. The USC Concession for medical card holders will be extended until 31st December 2027.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

6. The €5,000 Vehicle Registration Tax (VRT) Relief for new electric vehicles is extended until 31st December 2026.

For further information, please click link: https://www.gov.ie/en/department-of-finance/speeches/statement-by-minister-donohoe-on-budget-2026/

7. Employee Benefit-in-Kind Relief for employer provided vehicles (for cars in categories A-D and to all vans) is to be extended, on a tapered basis, until the end of 2028.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

8. Special Assignee Relief Programme (SARP) has been extended by 5 years to 2030.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

9. Key Employee Engagement Programme (KEEP) has been extended to 31st December 2028 subject to approval from the European Commission.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

10.Foreign Earnings Deduction (FED) has been extended by 5 years to 2030.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

Accounts Advice Centre provides a top tier level service for all personal income tax matters, from filing tax returns to offering specialist advice on complex taxation issues. We have over thirty years experience providing expert tax advice, tailored for individuals and their families. For a full professional taxation advice and compliance service, please contact us at queries@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.

Budget 2026. Business Taxes. Corporation Tax. R&D Tax Credits. Corporate Taxation. Capital Gains Tax.

Today, Tuesday, 7^th October 2025, the Minister for Finance, Paschal Donohoe and the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers presented Budget 2026.  In this series of articles, we have outlined some of the tax changes which we consider most relevant under the following headings (a) Personal Tax, (b) Business Taxes including Capital Gains Tax, (c) VAT, (d) Housing/Property, (e) Agri-taxation, (f) Investments and (g) Global Mobility and Employment.

BUSINESS TAXES

• As you’re aware, the Revised Entrepreneur Relief provides for a 10% rate of Capital Gains Tax on certain gains arising from the disposal of qualifying business assets. Previously, the lifetime limit was €1 million.  Today, the Minister announced that the lifetime limit on capital gains qualifying for CGT Revised Entrepreneur Relief will be increased to €1.5 million, from 1^st January 2026.

• A new exemption from the 1% stamp duty on acquisitions/transfers of shares in Irish registered companies is being introduced. It will apply to the shares of companies with a market capitalisation of below €1 billion that are admitted for trading on certain regulated markets. It will replace the existing stamp duty exemption for companies trading on the Euronext Growth Market.  The exemption is set to expire on 31^st December 2030.

• Previously, Special Assignee Relief Programme (SARP) was an income tax exemption for assignees of 30% of their relevant employment income between €100,000 and €1 million, provided certain criteria were met.  Budget 2026 extended the Special Assignee Relief Programme (SARP) for a further five years, to 31^st December 2030.   From 1^st January 2026, in order to qualify, new claimants of the Relief must have a minimum annual salary of €125,000.   This amendment will not affect existing claimants.  They can continue to avail of SARP, as before, in 2026 and further relevant years.  Finance Bill 2025 is expected to outline the simplification of certain relevant administrative requirements.

• Foreign Earnings Deduction (FED) relief has been increased to €50,000 from 1^st January 2026 and extended for a further five years, to 31^st December 2030.  The Philippines and Turkey have been included in the list of qualifying countries.  Finance Bill 2025 is expected to outline administrative amendments.

• The Key Employee Engagement Programme (KEEP), which was due to expire on 31^st December 2025.  Finance Bill 2025, however, will provide for an extension to this Income Tax exemption until the end of 2028, subject to European Commission approval.  KEEP provides for an exemption from Income Tax, Universal Social Charge and PRSI for any gain arising on the exercise of a share option by a qualifying individual in a qualifying company.

• Budget 2026 announced that the Research & Development (R&D) tax credit will rise to 35%.  The first year payment threshold will increase from €75,000 to €87,500.  An administrative simplification measure was also announced. This will allow 100% of an R&D employee’s emoluments as qualifying costs where at least 95% of that individual’s time is spent on qualifying R&D activities.  This update will provide more certainty and a reduction in administration for companies.

• The Digital Games Tax Credit, which provides for a 32% credit on qualifying expenditure up to €25 million, is being extended by six years to 31^st December 2031. Eligibility is being expanded to allow claims in relation to certain post‑release activities which are subject to qualifying conditions as well as EU approval.

• The Section 481 Film Tax Credit, which currently provides for a 32% credit on qualifying expenditure up to €125 million on certain productions, has been enhanced to provide a new 40% rate for productions with a minimum of €1m of eligible expenditure on relevant visual effects work, up to a maximum of €10 million eligible expenditure per production.  As the Film Tax Credit is an approved State aid, the enhancement measure will be subject to EU approval.

• Finance Act 2024 introduced a Participation Exemption for foreign dividends received, on or after 1^st January 2025, from subsidiaries in EU/EEA and double tax treaty partner jurisdictions.  Today, the Minister announced that several changes to the exemption will be provided for in Finance Bill 2025.  These include (i) broadening the geographic scope beyond dividends paid from subsidiaries in the EU/EEA and double tax treaty partners to include qualifying dividends received from jurisdictions that apply a non-refundable dividend withholding tax.  Other changes include (ii) reducing the period for which companies must have been resident in a jurisdiction within the geographic scope of the relief from five to three years, before paying a dividend, as well as (iii) providing clarification that the acquisition of a shareholding is not deemed to be the acquisition of a business asset for the purposes of the exemption.

• Following an extensive consultation, an action plan for the reform of Ireland’s taxation regime for interest was published today.  The primary request of stakeholders, arising from public consultation, was for a fundamental reform of the framework for the taxation and deductibility of interest.  The Action Plan sets out the timeline for phase one and nine other areas for potential reform under future phases are identified.  The main proposals put forward include: (a) an alignment of the tax treatment between trading and passive interest income, (b) the introduction of a renewed and simplified test for the deductibility of interest for corporation tax purposes as well as (c) the widening of the scope of interest deductibility to include ‘interest equivalents’.

• An extension to the Accelerated Capital Allowances schemes for energy efficient equipment until 31^st December 2030 was announced today.  This provides for an accelerated deduction of 100% in year one for business expenditure incurred on certain energy efficient equipment.

• The Accelerated Capital Allowances Scheme for Gas Vehicles and Refuelling Equipment was also extended to 31^st December 2023.

• The Minister announced that a public consultation on withholding tax will be launched soon to explore opportunities to modernise, digitalise and further expand the scope of withholding taxes.  A joint Department of Finance and Revenue public consultation is expected to be launched soon.

For further information, please click: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

At Accounts Advice Centre, we provide accurate and professional tax advice so you have the full and complete information you need to make the right decisions for you and your business.  We ensure your accounts and tax returns comply with the correct accounting standards and legal requirements.  To discuss what we can do for you, please contact us at queries@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.

Budget 2026. Income Tax. Personal Taxation. Analysis of Income Tax Reliefs and Excemptions.

Today, Tuesday, 7^th October 2025, the Minister for Finance, Paschal Donohoe and the Minister for Public Expenditure, Infrastructure, Public Service Reform & Digitalisation, Jack Chambers presented Budget 2026.  In this series of articles, we have outlined some of the tax changes that we consider most relevant under the following headings (a) Personal Tax, (b) Business Taxes, (c) VAT, (d) Housing/Property, (e) Agri-taxation, (f) Investments and (g) Global Mobility and Employment.

PERSONAL TAX

• Unlike in previous recent Budgets, there were no increases to the income tax rate bands and tax credits announced in Budget 2026.  However, there will be a reduction in the tax rate, from 41% to 38%, in relation to certain investments including Exchange Traded Funds (ETFs), certain Irish domiciled funds, certain life assurance policies, equivalent offshore funds and certain foreign life assurance policies

• The reduced Universal Social Charge for qualifying medical card holders will be extended until 31^st December 2027.  This applies to medical card holders earning less than €60,000 per year.  This ensures that such individuals continue to pay a reduced USC rate of 0.5% on the first €12,012 of their income with 2% on the balance.

• From 1^st January 2026, the National Minimum Wage will increase to €14.15.  The 2% USC rate band will increase from €27,382 to €28,700.  This means that the salary of a full-time employee on the minimum wage will remain outside the 3% rate of USC.  Incomes of less than €13,000 continue to remain exempt from USC.

• The Rent Tax Credit (RTC), which was due to expire on 31^st December 2025, has been extended for three more years to 31^st December 2028.  The maximum value of the RTC will remain at €1,000 for single individuals and €2,000 for jointly assessed couples or civil partners.

• Mortgage Interest Relief has been extended to 31^st December 2026. It will remain at current levels for 2025, however, it will reduce by 50% for 2026.  As you’re aware, this tax credit can be claimed for taxpayers who have made increased mortgage interest payments in relation to a qualifying loan for a principal private residence in 2025 when compared to 2022. For 2025 the relief is capped €6,250 per property.  This equates to a maximum tax credit of €1,250.  For 2026, the maximum tax credit of €625 will be available, based on the increase in interest paid in 2026 as compared to the mortgage interest paid in 2022.  There is no change to the qualifying criteria and the relief remains available to homeowners with an outstanding mortgage balance of between €80,000 and €500,000, as of 31^st December 2022.

• The Finance Bill 2025 will include additional amendments to the tax treatment for the Auto Enrolment (AE) Retirement Savings Scheme which will address the tax treatment of AE retirement savings on the participant’s death as well as exempt AE provider schemes from Investment Undertaking Tax and exempt employer AE contributions from USC.

• For, households that sell electricity back to the grid from micro-generation, the Income Tax relief that exempts income of up to €400 per annum, is extended, for three years, up to 31^st December 2028.

• As you may remember, in Finance Act 2023, a temporary universal reduction to the Original Market Value of some vehicles for the purposes of calculating BIK was introduced.  This temporary universal relief of €10,000 applied to the Original Market Value of vehicles in Category A to D.  Budget 2026 extended this Benefit-in-Kind Relief by one year i.e. this relief will remain at €10,000 for 2026.  It will then reduce to €5,000 in 2027 and €2,500 in 2028.  It will be abolished from 2029.

• From 1^st January 2026, there will be a new vehicle category (A1) for employer provided vehicles with zero-emissions, for Benefit in Kind purposes.   It will apply with BIK rates of between 6% to 15% from 2026, depending on business mileage.  Where an employee undertakes high business mileage, the lower threshold of the upper mileage band will be permanently reduced from 52,001km to 48,001km.

• Finally, for those involved in the manufacture of Uilleann Pipes and Irish Harps, the exemption from Income Tax of a maximum profit of €20,000 generated from the manufacture, maintenance and repair of uilleann pipes and early Irish harps is being extended for three years to 31^st December 2028.

For further information, please click: https://www.gov.ie/en/department-of-public-expenditure-infrastructure-public-service-reform-and-digitalisation/publications/your-guide-to-budget-2026/

Accounts Advice Centre provides a tax advisory and compliance service tailored to the needs of our diverse client base, their families as well as collaborating with their advisors.  With over thirty years’ experience in domestic and international tax, we provide an efficient service to ensure that you meet all deadlines and are not exposed to an unnecessary tax interest and penalties.  To discuss what we can do for you, please contact us at queries@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.

Gift and Inheritance Tax Ireland. Capital Acquisitions Tax. Dwelling House Relief. Dwelling House Exemption.

In general terms, Capital Acquisitions Tax is the Irish gift or inheritance tax arising on a benefit taken by or from an Irish resident individual. It also applies if a gift or inheritance includes Irish property, regardless of the residence of the person, either taking or giving the benefit.   It’s important to bear in mind that Capital Acquisitions Tax or CAT is paid by the beneficiary.  No CAT arises between spouses or civil partners.

Today, Revenue updated their guidance material on exemptions relating to dwellings in the form of a fourteen page document.  For full information, please click links:

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/dwelling-house/index.aspx

https://www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-manual/part-09-exemptions/section-86-exemption-relating-to-certain-dwellings.pdf

As you’re aware, the rules differ for gifts and inheritances.  For example, under the Dwelling House Relief, an individual can inherit a property tax free, provided that person:

1. has been living in the property for a minimum of three years prior to the date of inheritance,

2. does not own or have an interest in another residential property at the date of the inheritance,

3. continues to occupy the property as their main residence for six years from the date of the inheritance, unless the beneficiary is aged sixty five years or more at the date of inheritance.

Other points to consider are:

• the dwelling house must have been occupied by the disponer (i.e. the person giving the property) as their only or main residence at the date of their death.

• Relief is not available if the beneficiary holds a beneficial interest in another dwelling at the date of inheritance.

• The Dwelling House Exemption will not be available if the same beneficiary acquires an interest in another dwelling house from the same disponer, after the “date of inheritance” and right up to the date the estate is distributed.

For gifts of a dwelling house, however, the exemption requirements are different.  From 25^th December 2016 onwards, the exemption no longer applies to gifts of dwelling houses, unless the gift is made to a “dependent relative” of the donor.  This effectively means that a gift of a dwelling house given to a dependent relative of a donor will be exempt provided the recipient of the gift is either (a) permanently and totally incapacitated from maintaining themself due to a physical or mental infirmity or (b) is aged at least 65 years. It’s important to keep in mind that for such gifts to qualify for the tax exemption, the donor does not need to live in the property as their principal residence.  In addition to the above requirements, the following qualifying conditions for a gift apply:

You will be exempt from Capital Acquisitions Tax  on receipt of a gift of a dwelling house if, at the date of the gift:

1. the dwelling house was your main home for the previous three years,

2. you do not own or have an interest in any other dwelling house, and

3. the dwelling house continues to be your only/main home for at least six years from the date of the gift, unless you are aged at least 65 years at the date of the gift or are required to live elsewhere because of a mental or physical infirmity.  This must be certified by a medical doctor.

For completeness, the term “relative” is defined as a lineal ancestor, lineal descendant, brother, sister, uncle, aunt, niece/nephew of the giver or the spouse/civil partner of the giver.

Accounts Advice Centre provides a full and comprehensive tax advisory and compliance service.  If you require specialist inheritance or gift tax advice, please contact us at queries@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.

Corporation Tax Returns. CT1 Forms. Business Tax Advisors. Tax Deadline

On 27th August 2025, Revenue updated the The Tax and Duty Manual Part 38-02-01 to include links to the following Tax and Duty Manuals:

1. Completion of Corporation Tax Returns Form CT1 2024
2. Completion of Corporation Tax Returns Form CT1 2023

If you require assistance filing your CT1 Forms, please contact us at queries@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.

PAYE Exclusion Orders. Employers Tax. Global Mobility. Payroll Taxes

Today, 11th August 2025, Revenue have amended their Tax and Duty Manual Part 42-04-01 – PAYE Exclusion Orders.

This guidance material provides details of the new PAYE Exclusion Order application portal, which may be accessed through MyAccount or ROS.  This new application system will allow for faster processing times.

If you require assistance with payroll and in particular with PAYE Exclusion Orders, please contact us at queries@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.