‍Budget 2027: Key Points

 
 

Ministers Simon Harris & Jack Chambers have unveiled Budget 2027. It was noted that the Government expects to run a surplus of €6.7 billion in 2026 and €9.5 billion in 2027. The overall Budget package announced today will be €8.5 billion, with €1.65 billion in taxation reductions.

The details below are not exhaustive, and are only the key points of relevance from a personal financial planning perspective.

Investments & Pensions:

  • Exit tax on funds for personal investors is being decreased from 38% to 35%. This will impact all existing investors of open-ended funds and ETFs, both domestic and offshore. This follows on from the reduction from 41% to 38% in 2026.

  • Capital Gains Tax has been reduced from 33% to 31% with immediate effect. This impacts assets such as individual shares and property.

  • In terms of Pensions, no change was announced to the Standard Fund Threshold, which will increase by €200k to €2.4m 2027. This will increase in €200k increments each year through to 2029 until it reaches €2.8m.

  • There was no mention of any changes to tax relief available for making pension contributions, both in terms of personal tax relief and the funding opportunity of Employer contributions to PRSAs.

  • The Special Investment Account (SIA) Scheme will launch in July 2027. Contributions will be limited to €12,000 per year per person. It is not clear if Joint accounts will be possible. There will be no tax on funds up to €50,000, with anything above that taxed at a 1% rate. More detail will follow on this in due course.

Income & Capital Taxes:

  • Gift and Inheritance Tax thresholds are increasing, with Group A (Parent to Child) moving to €420,000, Group B moving to €44,000 and Group C moving to at €22,000.For Income Tax, the Standard Rate cut-off point will move from €44,000 p.a. to €46,500. The Personal Tax Credit, PAYE and earned income credit will all increase by €125. main tax credits remain the same also.

  • The USC 3% band has been increased to €45,500. The minimum wage will increase by 79c to €14.94 per hour. There was no increase to the Small Benefit exemption (for remunerating employees with vouchers) at €1,500.

  • The State Pension and welfare payments will be increased by €10 per week.

Property & Land:

  • Rent-a-Room relief has risen from €14,000 p.a. to €16,000 p.a.

  • First time buyers will be able to get up to €35,000 towards the deposit on their first home, under the Help-to-Buy scheme. This was increased from €30,000. There was no increase in value of eligible properties (€500,000).

  • There was no changes announced to stamp duty on property.

  • The annual Rental Tax Credit will rise by €150 to €1,150 for single renters.

Please note that the above points are summary only and should not be fully relied upon.