Is the 41% Exit Tax Soon to be Scrapped? Michael McGrath to Review

[jpd]

Or later

 

[GSheehy]

Does that mean the government aren't planning in addressing this issue until 2030 ?

Only thing that I can think of that might delay a reduction in the rate in the Budget this year and some action on 8 year DD is :

DoF - Well lads, how much is this going to cost?
Revenue - It's like this, we know to the cent what the implications might be for LAET but we're a bit vague on this whole self-assessed ETFs stuff
DoF - Say what...?

 

[TheJackal]

Departmental Data

Departmental Data Dáil Éireann Debate, Thursday - 20 March 2025

www.oireachtas.ie

Thursday, 20 March 2025

In October 2024, my predecessor published the ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’, a wide-ranging review of the funds and asset management sector. The Review fulfilled certain recommendations of the Commission on Taxation and Welfare 2022 report which called for, among other things, an examination of the taxation regime for funds and life assurance policies, with the goal of simplification and harmonisation where possible.

The Report arising from the Review sets out a series of recommendations to ensure that, in pursuit of continued growth in the funds and asset management sector, Ireland’s funds sector framework remains resilient, future-proofed, supportive of financial stability and a continued example of international best-practice.

The 2025 Programme for Government has committed to progress and publish an implementation plan taking into consideration the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland and I, working with my officials, will consider next steps in this regard over the coming months.

 

[joe sod]

Pascal donohue back as minister for finance, he has been very bad on this whole area, Jack chambers was a breath of fresh air, hopefully he is driving donohue to get moving on what himself and his predecessor started

 

[Steven Barrett]

DoF - Well lads, how much is this going to cost?
Revenue - It's like this, we know to the cent what the implications might be for LAET but we're a bit vague on this whole self-assessed ETFs stuff
DoF - Say what...?

My experience is that the Revenue really haven't a clue when it comes to self assessment tax on ETFs. It was all set up with the intention that the life companies would do all the work and they'd just cash the cheque. Then investment platforms became a thing and suddenly they had to figure out how it worked.

I have a case where a client on a platform paid his deemed disposal from other funds. He cash out his investment the following year. According to the Revenue's Investment Undertakings Guidelines 2016, he is supposed to add the deemed disposal amount to the final cash in value to calculate the final tax due and then offset it. If he does this, his tax on gains increases from 41% to 51%. I enquired with the Revenue 4 months ago on this matter. Never heard back. I am presuming because they don't know the answer. I would be pretty sure that if the client paid in 41% of his gain, it would be accepted.

From an admin point of view, I'd say the Revenue are perfectly happy for it to move under the established CGT rules.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[Corola]

Adding back the tax only works if you pay the deemed disposal from the fund.

Appendix I(b) describes the calculation with reference to the cost per unit, which works whether you sell part of the ETF or use your other funds to pay the deemed disposal.

Part 27 - Sections 731-747F

www.revenue.ie