backed investment account offers tax
The Irish government is introducing a new State-backed personal investment account scheme that eliminates the controversial 'deemed disposal' tax. The accounts will allow for investment in shares, bonds, and ETFs, with a tax-free threshold and no minimum contribution requirements.
Why it matters
This policy change aims to simplify personal investing for Irish citizens and encourage long-term savings by removing significant tax barriers.
Agriculture & Consumer Affairs Correspondent
No deemed disposal, a tax-free threshold, and no minimum contribution will be among the key features of the Government's new personal-investment account scheme.
It is also understood savers will be able to invest in shares, bonds, and ETFs - however - investing in risky products such as crypto assets and derivatives will not be allowed.
Tánaiste and Minister for Finance Simon Harris is due to announce a roadmap for the new State-backed accounts tomorrow, which are expected to be up and running early next year.
The roadmap, seen by RTÉ News, reveals that a significant benefit will be that deemed disposal tax will not apply to any funds held in investment accounts.
Under deemed disposal, every eight years certain investments are treated as if they have been sold for tax purposes - even if there has been no sale.
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