New Government Investment Plan: What It Could Mean for You

Over the weekend, the Minister for Finance Simon Harris announced that a new Savings and Investment Account (SIA) is currently being developed by the Irish Government. ​

The objective is to simplify how investments are taxed and to encourage greater participation in long-term investing.  The proposal comes at a time when significant household savings remain on deposit, with participation in investment markets relatively low by international standards. 
 
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What is being proposed? 
While full details are still being finalised, the proposed structure is expected to offer a simplified, tax-efficient investment product. Based on current indications: 

• No CGT (Capital Gains Tax) or income tax is expected to apply within the account   

• A range of investment funds and market-based assets would likely be accessible   

• A tax-efficient allowance may apply up to a defined threshold, with treatment above that level still under consideration   

 
It appears that the Government intends to introduce this as a new standalone savings and investment structure, rather than modifying existing options such as life assurance investment bonds, Exchange Traded Funds (ETFs), direct share and bond investments. As a result, current investment arrangements are not expected to be affected, with the SIA likely to sit alongside existing structures as an additional option. 
 
This would represent a significant addition to the current system, where investors face CGT of 33% on shares and exit tax of 38% on many funds, alongside deemed disposal after eight years. 
 
Context: The Swedish model 
Ministers have indicated that the model under consideration is similar to the Swedish Investeringssparkonto (ISK). Under this system, tax is not applied to individual gains or income in the usual way. Instead, a modest annual tax applies based on the value of the account above a certain threshold.  In Sweden, a tax-efficient threshold currently applies at approximately €28,000 per person, with an annual charge applying above that level (currently c.1% per annum). This means it tends to be more suitable for higher return, more volatile investments and less efficient for lower-yielding assets such as cash or bonds.  It is not yet confirmed whether Ireland will adopt a similar threshold. 
 
 
What could it mean for investors? 
If the government does proceed in this direction, for clients holding excess cash on deposit, this could provide a simpler and potentially more tax-efficient route into long-term investing. If introduced along these lines, it may reduce tax issues, allow greater flexibility in managing portfolios, and support long-term compounding. 
 
At a household level, any individual allowance could potentially be utilised by both partners, increasing the total tax-efficient threshold to approximately €56,000 (based on the Swedish threshold) for a couple, above which an annual tax on the capital value would start to apply. 
 
If Ireland were to adopt a similar threshold, the benefit would likely be limited in scale. It is therefore expected to complement, rather than replace, existing investment and pension structures. 
 
Distinct view 
As our clients know, we believe structuring how you invest your hard-earned capital is a key component of a successful investment strategy, and this is a welcome development. However, if the threshold is low, the new plan is unlikely to replace the core long-term wealth accumulation vehicles for higher net worth individuals and is more likely to act as an additional planning tool for a limited portion of our clients’ investable wealth. 
 
What happens next? 
The proposal is expected to progress through 2026, with potential inclusion in Budget 2027.  We will monitor developments closely to assess how our clients can take advantage of the final investment scheme within their overall financial plan and will provide further guidance as more detail becomes available.

​Disclaimers 

• This document is intended as a general guide and does not constitute advice. Please contact us to arrange advice specific to your own situation. 
• All figures, calculations, statistics and tax rates are based on indicative rates as at the date of this article which is noted above.
• Please note this document is not meant to be a comprehensive assessment of the tax rules that could apply under all scenarios and it is possible the tax rates outlined above may change and may be different depending on the individuals’ circumstances. 
• Worked examples are intended as a guide only and the actual return will depend on the product available at the time and the tax rates applicable to your own situation. 
• Examples are for personal investors. Different tax rules apply for Corporations and Charities.