Capital Gains, Inheritance Tax and Ireland’s New Savings Investment Account: A Financial Planner’s Guide to the Budget 2027
Many people eagerly await the Government’s budget each year, anticipating the major spending adjustments and the professional and personal effects they will have on both businesses and individuals.
The Irish Government officially rolled out the Budget 2027 on the 6th of October 2026, outlining the funding allotments for the upcoming year across numerous sectors and industries.
At Moore Wealth Management, we have compiled the most important things you should know, which will help you with your financial future and help you better plan your taxes and overall handling of your money in the new year.
Capital Gains Tax:
Will be reduced from 33% to 31%
Capital Acquisitions Tax (Inheritance Tax):
Group A threshold will change from €400,000 to €420,000,
Group B threshold from €40,000 to €44,000
Group C threshold from €20,000 to €22,000.
Investment Taxes:
Reduction in tax on investing in Irish funds. The tax will decrease from 38% to 35%
New Tax Bands:
Standard Rate Cut-Off Point increased by €2,500 to €46,500
Entry threshold for the USC 3% band increased by €1,600, from €28,700 to €30,300
New Savings & Investment Account Scheme:
• A tax-free threshold of €50,000:
• A flat tax of 1% on the value of the account above that threshold
• A maximum contribution limit of €12,000 per annum and no minimum contribution
Simon Harris said: “As an example, if an account were to be valued at €2,000 above the threshold, in other words €52,000, the tax payable for that year would only be €20.
“The contribution limit of €12,000 in combination with the tax-free threshold means it is extremely unlikely that any tax will be due in the first few years following the opening of an account, even where the maximum contribution is made,” he added.
New Tax Credits/Increase in Tax Credits:
Personal, Employee and Earned Income Credits, increased by €125.
Home Carer Tax Credit will increase by €100
Rent Tax Credits will increase by €150 to €1,150
Carbon Tax:
The rates will be reduced to €48.50 per tonne of CO2.
Rent-a-Room Scheme:
Tax-Free Threshold increased from €14,000 to €16,000
The scheme will also include newly installed Detached Auxiliary Dwellings between 32 and 45 square meters.
First-Time Buyers Scheme:
The maximum refund a first-time buyer can claim will be increased by €5,000 to €35,000
Social Welfare:
€10 increase in weekly social welfare rates
New cost of disability payment of €500
Carer’s Allowance income disregard will increase to €1,150 for a single person and €2,300 for a couple
Fuel excise rate reductions now in place until February
If you are looking for expert, knowledgeable industry advice from Certified Financial Planners™ about what these changes mean for you, talk to our team for tailored advice and planning today.
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