Budget 2027
Budget 2027: What It Means for Your Financial Future
Budget 2027 was announced today against a backdrop of strong public finances, ongoing cost-of-living pressures and a growing focus on supporting long-term economic resilience.
Today’s statement signals a clear policy shift towards encouraging long-term wealth accumulation and investment, while continuing to support retirement planning, entrepreneurship and broader financial resilience.
While many of the headline measures will be widely reported, the real question for individuals, families and business owners is what these changes mean for their financial futures.
Below, we look at the key announcements in the areas that we feel will matter most to our clients.
Investors & Savers
Clarification on the new Personal Investment Account (PIA)
-Tax free threshold of €50,000
-1% flat tax rate for balances above €50,000
-Annual contribution limit of €12,000
-Accounts to commence from 1st July 2027
-Account providers to facilitate tax remittance to Revenue
-No deemed disposal
-Charging structures yet unknown, expected to be transparent and competitive
Investment Tax Measures
-Reduction in Exit Tax from 38% to 35% from 1st January, 2027.
-Deemed disposal still applicable and for further review
What it means for you
Ireland has become significantly wealthier over the past decade, yet many households continue to hold substantial sums in cash deposits. Any measures designed to encourage long-term investing may provide new opportunities for savers seeking to protect purchasing power and build wealth over time.
Business Owners
Key announcements
-Reduction in CGT for disposal of business assets from 33% to 31% from 7th October 2026
-No changes to entrepreneur or retirement reliefs
What it means for you
Details in the overall package for business owners extends beyond tax rates alone. The reduction in CGT supports business growth and future exit plans, rewarding risk and hard work.
Family Wealth and Inheritance
Capital Acquisitions Tax (CAT) threshold changes
Group threshold changes
-Group A (Children inheriting from parents) up from €400,000 to €420,00 (5%)
-Group B (Siblings, nieces/nephews, grandchildren and grandparents) up from €40,000 to €44,000 (10%)
-Group C (Other relationships, including friends and more distant relatives) up from €20,000 to €22,000 (10%)
No change to Small Annual Gift Exemption which remains at €3,000 p.a.
What it means for you
As family wealth grows, so does the importance of planning how it is transferred. Even relatively small changes can affect long-term inheritance plans, gifting strategies and the financial security of future generations.
Pensions & Retirement
-Capitalisation factors for valuing Defined Benefit pensions to change from January 2027. Factors to be confirmed in Finance Act.
-Social Welfare Changes (€10.00 per month)
What it means for you
For many individuals, pensions remain one of the most effective ways to build long-term wealth. A change in the capitalisation factors should see a reduction in Chargeable Excess Tax liabilities coupled with potential new planning opportunities and scope to reassess personal funding.
The Unio View
Budget 2027 introduces changes that will affect how people save, invest, plan for retirement and pass wealth to the next generation. As always, the Budget announcement tells only part of the story. The Finance Bill and subsequent legislation will provide the detail needed to fully assess the implications of many of today’s measures, and we will continue to monitor developments closely.
However, successful financial planning has never been about reacting to a single Budget. It is about understanding how these changes fit into your wider financial picture and ensuring your wealth is working towards the goals that matter most to you. If you would like to discuss how today’s announcements may affect your circumstances, speak to your Unio Consultant.