{"id":547248,"date":"2026-06-21T20:48:25","date_gmt":"2026-06-21T20:48:25","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/547248\/"},"modified":"2026-06-21T20:48:25","modified_gmt":"2026-06-21T20:48:25","slug":"government-urged-to-cut-capital-gains-tax-in-budget-2027-to-spur-investment-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/547248\/","title":{"rendered":"Government urged to cut capital gains tax in Budget 2027 to spur investment \u2013 The Irish Times"},"content":{"rendered":"

Stockbroker Davy and consultancy PwC Ireland have told the Government that significant cuts to capital gains tax (CGT)<\/a> are required in Budget 2027 to encourage entrepreneurship and investment in the Republic.<\/p>\n

In a pre-budget submission, Davy<\/a> recommended an immediate reduction in CGT from 33 per cent to 25 per cent and urged the Coalition to commit to reviewing \u201cthe case for further decreases post-2027\u201d.<\/p>\n

Head of Davy\u2019s business owners segment Kevin Doherty said its recommendations were based on consultations with Irish business owners, who said they felt a lack of support to realise the full potential of their business. <\/p>\n

\u201cReducing capital gains tax rates to 25 per cent, which would put Ireland broadly mid-table in a euro zone context, coupled with other targeted supports for entrepreneurs, would be a highly positive starting point,\u201d said Doherty.<\/p>\n

A separate pre-budget submission by PWC Ireland<\/a> said one of its central recommendations for the budget was a phased reduction in CGT to 20 per cent. It said the Republic\u2019s rate was among the highest in Europe and should be reduced to 20 per cent over a three- to five-year period to encourage investment activity and support reinvestment in Irish businesses. <\/p>\n

\"\"Will a Middle East peace deal make any difference to inflation? <\/p>\n

Taoiseach Miche\u00e1l Martin first signalled in February<\/a> that the Government would scope out changes to CGT when he told the Business Post the 33 per cent rate was too high. <\/p>\n

\u201cI think there is evidence we\u2019re losing some investments or some capital when people sell their businesses,\u201d said Martin. <\/p>\n

Davy\u2019s pre-budget submission also suggested changes to the Entrepreneur Relief scheme, which allows business owners to avail of a reduced 10 per cent CGT rate on the sale of a business or shares up to \u20ac1.5 million. <\/p>\n

The stockbroker has advised that the lifetime limit should be raised to \u20ac3 million to promote more enterprise and called for \u201csignificant simplification\u201d of the rules to allow access to the 10 per cent rate for external investors.<\/p>\n

Head of tax at PwC Ireland Paraic Burke said the budget was a \u201ccritical opportunity\u201d for the Government to prioritise innovation, clean energy, housing delivery and indigenous enterprise.<\/p>\n

\u201cAs global competition intensifies and economic conditions evolve, we emphasise that certainty, simplicity and targeted investment will be key to sustaining Ireland\u2019s competitive edge,\u201d said Burke.<\/p>\n

PwC Ireland\u2019s submission said the State has a track record of attracting research and development (R&D), but tax credits being applied to this activity are \u201cincreasingly misaligned\u201d with modern R&D.<\/p>\n

The current system allows companies to claim a corporation tax credit of 35 per cent on R&D expenditure.<\/p>\n

The consultancy said since many firms now rely on outsourcing to access niche expertise for R&D, the third-party outsourcing cap for R&D credits should be increased from 15 per cent to 30 per cent.<\/p>\n","protected":false},"excerpt":{"rendered":"Stockbroker Davy and consultancy PwC Ireland have told the Government that significant cuts to capital gains tax (CGT)…\n","protected":false},"author":2,"featured_media":547249,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[73],"tags":[10471,79,36306,28197,22779,18,19,17,2356],"class_list":["post-547248","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-budget","tag-business","tag-capital-gains-tax-cgt","tag-davy-group","tag-department-of-finance","tag-eire","tag-ie","tag-ireland","tag-pwc"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116790067789301676","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/547248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=547248"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/547248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/547249"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=547248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=547248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=547248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}