Could this be it, Irish ISAs?

unhappyBB

Just saw this article this morning (well the free initial paragraph, not the full one). What could it mean? Finally a sensible solution for Irish investors or just an empty pre-election promise?

https://www.businesspost.ie/news/tax-incentives-for-retail-investors-to-come-in-next-budget/

bilbot79

Saw this myself and it felt like manna from heaven. There is also talk a out raising the standard fund threshold for pensions.

I can only assume Ireland may be about to become more attractive for investors.

Now to work on a promotion before A Place in the Sun permanently relocates to Dublin

PommieBast

https://www.boards.ie/discussion/2058351598/could-this-be-it-irish-isas

Devil is in the detail but ultimately it is the government wanting to dip into people's savings for capital expenditure.

marathonic

The wording of another article on the subject suggested to me that it was some sort of an extension to the EIIS scheme which is the last thing the government want to do.

Outside of the tax situation in Ireland, one of the main things that turned my fathers generation away from the stockmarket was the Telecom Eireann flotation in 1999. This was a complete disaster for many and many friends have been warned away from the stockmarket by parents who had been burned. Many who faced losses attributed those losses to the government of the time.

If they decided to extend the EIIS scheme, which is inherently risky due to only investing in small SME in Ireland, they could be pushing a brand new generation of Irish citizens towards a scheme that results in signficiant potential losses.

As per the original post, an Irish version of the UK ISA would be ideal. Don't limit new investors to the riskiest of asset classes and risk a scorned electorate when the next elections roll around. Instead, give people more freedom around what they can invest in and they have no one but themselves to blame if it goes pear-shaped.

marathonic

"Invest in startups and other projects" is a phrase in this article too. It definitely looks like they're trying to encourage savers to withdraw their cash on deposit and move it from the lowest of the low risk asset class to one of the riskiest asset classes available to invest in.

Supercell

Given that the powers that be think the reason retail doesn't invest in ETF's here because they are too "complicated" and not because of the penalisation by taxes….Strange how our fellow english speaking Americans and Brits don't seem to suffer that malaise…

I'm not holding my breath. An Irish ISA/IRA ..we'll see partition ended before that happens.

crushproof

If this does happen it would be a huge step in the right direction and could tempt people to move back. I know I'm not the only one across the pond who's reluctant to move back home because of the incredibly restricted investment and savings environment.

Shedite27

https://www.boards.ie/discussion/comment/122164591#Comment_122164591

Seems a very shallow way to live your life. Do you not have a life and friends in UK that you'd miss? Or friends and family in Ireland that you're living without to avoid paying taxes?

techman1

Any update on this review into funds ,ETF taxation in Ireland and the dreaded exit tax. It was supposed to be completed this summer but haven't heard anything since early spring?

Mach 3

https://aibni.co.uk/our-products/savings-and-deposits/cash-isa

AIB offer ISA in the North.

How do you suppose a united Ireland vote would go if you were told £20k per year savings at 0% capital gains tax is now going to be taxed @33%

Just saying….

dxhound2005

That AIB product is just a savings account, limit of £20K and variable tax free interest. They warn that the favourable tax treatment of ISA's could change or not be maintained in future. They do not offer Stocks & Shares ISA's to NI customers.

You can put up to €250K into savings schemes in Ireland, tax free interest. Other savings schemes are charged DIRT on the interest. So it is not just investor types who have to contribute to the tax base.

techman1

You can put up to €250K into savings schemes in Ireland, tax free interest. Other savings schemes are charged DIRT on the interest.

Can you enlighten me regarding this, what savings scheme can you avail of that's free of tax in Ireland?

Jim_Hodge

https://www.boards.ie/discussion/comment/122570888#Comment_122570888

State Savings schemes immediately come to mind.

techman1

https://www.boards.ie/discussion/comment/122570962#Comment_122570962

Oh those, but they are rubbish with terrible interest rates,

dxhound2005

https://www.boards.ie/discussion/comment/122571331#Comment_122571331

Enlighten us with information about some product that is guaranteed to return say 5% every year, before tax and before fees. I am only interested in guaranteed future returns, not what happened in the past.

"If your investments have dropped in value, you might be asking yourself “why is my ISA losing money?”. It's important not to worry. Remember, it's completely normal for investments to go up and down in value and you haven't lost any money yet - unless you sell your investments for lower than you paid."

.

timmyntc

https://www.boards.ie/discussion/comment/122571519#Comment_122571519

Revolut instant access savings offer 1.32% after DIRT, state savings 3year is 1.32% AER tax free. 10 year bond a measly 2.01%.

Non state fixed savings offer better returns than that even after tax is paid. State savings are awful