The main post-Budget 2027 and Finance Bill observations on Financial Services

Contributor: Michelle Adams, Director, Financial Services Tax, BDO 

The Finance Bill contains several significant changes for the Financial Services sector. These include the detailed legislative framework for the new individual investment account, changes to the taxation of investment funds and life assurance products, amendments to the tax treatment of interest, updates to the Interest Limitation Rule and Pillar Two legislation, and an extension of the Bank Levy.

A number of these measures have been explored in greater detail elsewhere. Angela Fleming examines the new IIA, the amendments to the taxation of interest and the updates to the Interest Limitation Rule, while Clara Barry considers the changes affecting investment funds and life assurance products.

The Bank Levy has been extended for a further year and will continue to apply in 2027 to eligible banks operating in the Irish market. The levy is expected to raise €200 million.

Further amendments have been made to Ireland’s Pillar Two regime to reflect the OECD Side-by-Side Package agreed in January 2026. These include a number of new safe harbours, updates to filing and penalty provisions, and the incorporation of additional OECD Administrative Guidance. In-scope groups should review the changes as part of their ongoing compliance processes.

The Finance Bill also provides for the continuation of the health insurance levy and introduces measures to implement the OECD Crypto-Asset Reporting Framework (CARF), requiring certain crypto-asset service providers to report transaction information for tax purposes.

Furthermore, a reduction in the CGT rate from 33% to 31% was introduced and is effective from 7 October 2026.