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Pre-Budget Submission 2027

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Building National Wealth: Davy’s Pre-Budget Submission 2027

June 2026

Davy is Ireland’s leading provider of wealth management and investment banking services, advising private and corporate clients in Ireland and the UK and institutional investors globally. Our pre-budget submission is informed by the experience of our Irish clients, the sectoral insights of our research analysts and institutional investor views on the Irish economy. We do not seek to represent their many and divergent perspectives, rather we focus on matters of greatest national significance.

Our priority asks from Budget 2027 are the following:

National Infrastructure Delivery

A renewed commitment to delivering in full on the ambition outlined in the National Development Plan (2026-2035), ensuring that the pace and quantum of infrastructure delivery keep pace with recalibrated forecasts of the size of our population and economy. From a national wealth perspective, it is important that the Irish-owned business is enabled to compete effectively with international players for related contracts. Rigorous public reporting on progress versus plan is welcomed.

Irish-Owned Business

Business ownership is the central pillar of Irish household wealth but has been growing more slowly than the economy and the eurozone average. Structured consultations with Irish business owners speak to a policy and tax system which is constraining their potential. We are calling for an end-to-end review of the tax system as it serves domestically and internationally-trading Irish business, as well as a series of immediate tax changes, including: i) a reduction in the headline rate of CGT; ii) the refinement of related reliefs (e.g. Entrepreneur); and iii) a review of the KEEP scheme. Immediate measures to address the high rates of taxation of middle-income earners should be considered.

Retirement Security

Ireland is facing a very significant retirement funding challenge, with Davy estimating a pension deficit of circa €250 billion for all private sector workers in Ireland at end-2024. We are calling for the full implementation of findings from the 2024 review of the SFT regime; an increase in the BIK limit on employer PRSAs from 100% and a review of mandatory ARF withdrawal limits, among others. Beyond taxation, there is a need for sustained investment in raising national awareness of pensions with access to independent advice critical at all stages but particularly at the point of retirement.

Successful Investing

We continue to advocate for a series of changes to the tax treatment of regulated funds in Ireland, which impede the cost-effective diversification of Irish wealth. Primary asks here are: alignment of fund taxation on the standard CGT rate; removal of the “deemed disposal” rule; and the ability to offset fund losses against gains across regulated funds as is possible for other investment assets. We have also long advocated for the introduction of a tax-incentivised SIA and are pleased to see this now being given policy priority. It is, however, important that the account is set up for success at launch. We believe that the accounts should be fully tax-exempt, with an annual contribution limit and no lifetime cap. Cash should be permitted in a limited way, with no geographic or other restrictions.

Capital Taxation Equity

We are calling for a series of changes to Capital Acquisition Tax (CAT) to preserve taxpayer equity across the system and the achievement of related policy objectives. Primary asks here are; a review of current inheritance and small gift thresholds and their systemised indexation; addressing higher aggregate rates of taxation on the inheritances of unmarried or childless individuals; and a reduction in the current 35-year aggregation period for CAT which presents real compliance challenges.

Read our Pre-Budget Submission 2027

The combined effect of the proposals presented would, we believe, make Ireland more resilient to the many challenges now facing our economy and society as well as those likely to present.

Informing our submission this year are structured consultations with a cross-section of Irish business owners, as well as a representative survey of Irish adults on their attitudes to investing and the proposed Government Savings and Investment Scheme.