Budget Briefing 2026 – Update for Members

Dear Member,

Today marked the unveiling of Budget 2026, and we wanted to share some significant updates that will impact your clients and the financial landscape.

One of the most notable changes is the reduction of the Life Assurance Exit Tax (LAET) from 41% to 38%. While this is certainly a step in the right direction and will be welcomed by many, we must express our disappointment that the full recommendations from the Fund Sector Review Report, published late last year, have not been implemented. Specifically, the reduction of LAET to 33% and the removal of the 1% life assurance levy remain unaddressed.

In addition to the changes in LAET, here are other key updates from the budget:

• Mortgage Interest Tax Relief: This relief has been extended for an additional two years. However, it is important to note that the value of the relief will be reduced in the final year. Homeowners with mortgages will continue to receive some tax benefits, but these will taper off over time.
• Renters’ Tax Credit: This credit has been extended until at least 2028. Renters will benefit from ongoing tax relief related to their rent payments.
• National Minimum Wage: Effective from 1 January 2026, the national minimum wage will increase to €14.15 per hour. This change aims to support lower-income workers but will also result in higher costs for employers.
• Universal Social Charge (USC): The 2% rate band ceiling will be increased to approximately €28,700. This adjustment ensures that more individuals, especially those earning minimum wage, stay within the lower USC rates, thereby improving their take-home pay.
• Tax Cuts & Fiscal Space: The budget includes approximately €1.5 billion in broad tax cuts. Much of this amount will be allocated to the VAT cut in the hospitality sector. Other changes may include increases to thresholds (e.g., USC bands) to prevent “bracket creep,” which benefits employees and reduces pressure on smaller businesses employing these individuals.

SEE 2026 BUDGET BRIEFING OUTLINE

As additional updates on the 2026 Budget become available, we’ll keep this page refreshed to keep you informed on latest developments.

As always, we are here to support you and your clients in navigating these updates. Should you have any questions or require further information, please do not hesitate to contact me.