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Aviva Life & Pensions Ireland Designated Activity Company, is a private company limited by shares, registered in Ireland No. 165970. Registered office at Building 12, Cherrywood Business Park, Loughlinstown, Co. Dublin, D18 W2P5. Tel (01) 898 7950, www.aviva.ie
Aviva Life & Pensions Ireland Designated Activity Company, trading as Aviva Life & Pensions Ireland and Friends First, is regulated by the Central Bank of Ireland.
Aviva Insurance Ireland Designated Activity Company, trading as Aviva, is regulated by the Central Bank of Ireland. A private company limited by shares. Registered in Ireland No. 605769. Registered Office: Cherrywood Business Park, Dublin, Ireland, D18 W2P5.
Budget Summary 2027
Everything you need to know
For financial brokers, the most significant measures are the introduction of the new Investment Account, a further reduction in the taxation of investment funds and life assurance policies, changes to Capital Gains Tax and Capital Acquisitions Tax, and revisions to the valuation factors applying under the Standard Fund Threshold regime.
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Aviva Budget 2027 Summary
Savings and Investments: New Investment Account
The headline announcement for the savings and investment market is the introduction of a new Investment Account from 1 July 2027. The account is intended to make retail investing simpler and more accessible.
Individuals will be able to contribute up to €12,000 each year. A tax-free threshold of €50,000 will apply to the value of the account. Where its value exceeds €50,000, an annual tax of 1% will apply to the portion above the threshold.
Normal tax administration will be undertaken by the account provider, with no requirement for the investor to engage directly with Revenue. The eight-year deemed disposal rule will not apply. Permitted investments will include shares, bonds, exchange-traded funds and other funds.
Investment and Life Assurance Taxation
From 1 January 2027, Investment Undertaking Tax and Life Assurance Exit Tax will reduce from 38% to 35%.
The reduction follows the decrease from 41% to 38% introduced in Budget 2026 and represents a further welcome step towards reducing the tax burden on Irish savers and investors. The Government has also indicated that wider work will continue on the investment taxation regime, including deemed disposal and the administrative burden facing investors.
Capital Gains Tax and Capital Acquisitions Tax
The standard rate of Capital Gains Tax will reduce from 33% to 31% for disposals made on or after 7 October 2026. The separate 33% rate applying to disposals of development land will not change.
Capital Acquisitions Tax thresholds will increase as follows:
- Group A will increase from €400,000 to €420,000.
- Group B will increase from €40,000 to €44,000.
- Group C will increase from €20,000 to €22,000.
Pensions
There were no general changes announced to pension contribution limits or the income-tax relief available on pension contributions.
However, the age-related valuation factors used under the Standard Fund Threshold regime will be revised from 1 January 2027. The detailed factors will be set out in the Finance Bill.
Budget 2027 also makes provision for approximately 835,000 workers under My Future Fund, the State’s auto-enrolment retirement savings system.
Income Tax and USC
The standard-rate income tax band will increase by €2,500, while the Personal, Employee and Earned Income Tax Credits will each increase by €125 to €2,125. The Home Carer Tax Credit will increase by €100 to €2,050. The upper limit of the 2% USC band will increase from €28,700 to €30,300, with all other USC rates and thresholds unchanged.
Social Protection
Core weekly social welfare payments, including the State Pension, will increase by €10 per week, with proportionate increases applying to qualified adults.
Further details will be contained in the Finance Bill and the Social Welfare and Pensions Bill. The measures outlined above therefore remain subject to enactment and subsequent Revenue and departmental guidance.
Review of Funds Sector
The Minister for Finance referenced the recent consultation on the ‘Funds Sector 2030’ and noted that the report has now been finalised and will be presented to Government shortly.
