When is the Irish Government going to Introduce A UK Style Investment and Savings Account (ISA) for Ordinary People.
In the UK, It is possible to save in a cash ISA, a stocks & shares ISA, an innovative finance ISA, a Help to Buy ISA, a Lifetime ISA or a mixture of all of them of up to £20,000 a year, every year with zero tax liability on any gains made on interest or the sale of the shares up to £20,000. A new £20k Investment can be made year after year after year tax free. This is an illustration of the huge gulf that exists between the taxation of UK versus Irish citizens, (Not to mention income tax and more)
Tax treatment on all forms of investment in Ireland are extremely punitive: whether it is CGT Tax on Shares, Exit Tax on funds, Dirt tax an savings, Revenue is determined to constrain our efforts to build any form of a financial nest egg. In fact, personal investing in Ireland is so penal from a tax point of view that there is a major disincentive to do so.
As an example, Owners of ETFs in Ireland are bound to pay 41% income tax every 8 years on what is known as a deemed disposal date fabricated by Revenue regardless of whether the ETF is disposed of (sold) or not . It kills the compounding effect of holding on to ETFs beyond 8 years and ultimately the ability of a retail investor to build wealth.
The ISA system of the UK incentivises personal saving and investment by ordinary people for people who want to build wealth. For those who want to use their investments to strengthen their purchasing power and spend it, it means that ultimately there will be more money circulating in the economy leading to a more prosperous nation.
Is there anyone in the know on this lobbying government to overhaul investment taxes to make them fairer and to incentivise investment?
In the UK, It is possible to save in a cash ISA, a stocks & shares ISA, an innovative finance ISA, a Help to Buy ISA, a Lifetime ISA or a mixture of all of them of up to £20,000 a year, every year with zero tax liability on any gains made on interest or the sale of the shares up to £20,000. A new £20k Investment can be made year after year after year tax free. This is an illustration of the huge gulf that exists between the taxation of UK versus Irish citizens, (Not to mention income tax and more)
Tax treatment on all forms of investment in Ireland are extremely punitive: whether it is CGT Tax on Shares, Exit Tax on funds, Dirt tax an savings, Revenue is determined to constrain our efforts to build any form of a financial nest egg. In fact, personal investing in Ireland is so penal from a tax point of view that there is a major disincentive to do so.
As an example, Owners of ETFs in Ireland are bound to pay 41% income tax every 8 years on what is known as a deemed disposal date fabricated by Revenue regardless of whether the ETF is disposed of (sold) or not . It kills the compounding effect of holding on to ETFs beyond 8 years and ultimately the ability of a retail investor to build wealth.
The ISA system of the UK incentivises personal saving and investment by ordinary people for people who want to build wealth. For those who want to use their investments to strengthen their purchasing power and spend it, it means that ultimately there will be more money circulating in the economy leading to a more prosperous nation.
Is there anyone in the know on this lobbying government to overhaul investment taxes to make them fairer and to incentivise investment?
Last edited: