Louise O'Reilly
Ceist:232. Deputy Louise O'Reilly asked the Minister for Finance his views on individual savings account schemes; and if he will make a statement on the matter. [21224/24]
Amharc ar fhreagraTuesday, 14 May 2024
Ceisteanna (232)
Freagraí scríofa
I note the Deputy's query in relation to individual savings schemes. It is important to highlight the existing tax free savings products which are available in Ireland and provide and efficient and attractive way for people to save.
The National Treasury Management Agency (NTMA), through State Savings products, offers a wide range of tax free savings products to the general public, including Prize Bonds and fixed rate savings bonds/certificates. Both short term and long term fixed rate products are offered, with maturities from 3 to 10 years. The interest rates on offer are competitive and provide good value for the holders of State Savings products. The return for the saver rewards those who hold products to maturity. However, early redemption is also possible. The currently available tax-free State Savings products therefore allow the saver to invest in a competitive, flexible product which is tax free and afforded full State protection. The NTMA keeps these products under review.
The Deputy will be aware that the UK have individual savings account (ISA) schemes in place, which allows for savings and investments free from UK tax. The introduction of a new financial services product in Ireland on the lines of the UK ISA would need to be considered in the wider policy context. The introduction of a similar type scheme would need to comply with EU financial services legislative and regulatory requirements and the tax implications would be determined by the structure of such a scheme.
On 6 April 2023, I published the terms of reference for a review of Ireland’s funds sector and some related taxation issues. Among other issues, the review is examining three specific areas of taxation which were highlighted in the recommendations of the Commission on Taxation and Welfare. These issues are (1) the taxation regime for funds; life assurance policies and other related investment products; (2) the real estate investment trusts (REITs); and the Irish real estate funds (IREF) regimes and their role in the property sector; and (3) the use and scope of the section 110 regime. A public consultation was run in summer 2023. A progress update was subsequently published on 21 December 2023. The progress update highlighted the main trends, risks, challenges and opportunities facing the funds industry in Ireland out to 2030, as identified in the responses. The progress update also summarises proposals made in submissions in relation to the taxation of Exchange Traded Funds and for a tax-free/tax-advantaged retail savings and investment product. The review team will report to me in summer 2024 and I look forward to considering its findings at that point.