High level of M&A activity reported at Walsh O’Brien Harnett

Despite the chaotic political climate, there is a consistent level of activity in the mergers and acquisitions sector. Companies are actively engaging in transactions, with both local SMEs and international firms seeking to establish a presence through acquisitions. Walsh O’Brien Harnett’s Tax partner, Bryan Farrell, highlights the importance of accounting and tax due diligence in these transactions.

The Budget for 2026 focuses on targeted measures rather than significant changes across the board. Specifically, there are initiatives related to property, with a goal of increasing the housing supply. While measures like the Derelict Property Tax, VAT reductions for apartment construction, and additional tax deductions for building firms are positive steps, more efforts may be necessary to address the housing shortage at a national level.

On the personal tax front, standard rate personal tax thresholds and credits remain unchanged in the budget. Minor adjustments have been made to reliefs like the Rent Tax Credit, providing limited relief considering the ongoing cost-of-living challenges. Capital Acquisitions Tax thresholds have also remained the same, despite the rise in asset values, particularly for family homes. These factors impact business and succession planning, resulting in higher tax responsibilities for family-owned businesses.

The decrease in the tax rate for certain investment funds and life insurance policies from 41% to 38% is favorable for investors. However, this adjustment does not tackle broader tax issues associated with this regime, such as complexity for investors, lack of loss relief availability, and the eight-year deemed disposal rule.

Joe Cunnane from TRA emphasizes the need for simplified tax administration in light of the Budget highlights. Grayson Buckley from Crowe Ireland predicts that the budget is unlikely to have a significant impact on economic activity in 2026. International tax practices are on the rise at RBK, according to Ronan McGivern. Shane Wallace of the Irish Tax Institute issues a call to action, urging stakeholders to address crucial tax matters. Additionally, corporate transactions and group reorganizations have seen an uptick in pace, as noted by John FitzGerald.

Overall, the budget for 2026 focuses on targeted measures for property and minor tweaks in personal tax reliefs. While some adjustments may benefit specific groups, more comprehensive solutions may be required to address broader tax challenges and economic concerns. As the business landscape continues to evolve, it is essential for companies to stay informed and adapt to changing tax policies and regulations.