Budget 2027 Q&A: Your questions answered

Good morning and welcome to our live Budget 2027 Q&A.Here we are going to dig down into the detail of what it all means for you with Dominic Coyle, Deputy Business Editor at The Irish Times; Beryl Power, tax director at PwC Private Clients; and Ruth Gilligan, manager at PwC Private Client Services.You can submit any questions you have on the form below. EducationAcross-the-board €150 permanent cut to student fees Q: I have three children in university, and I’m paying rent and fees for them. No SUSI grants due to us having saved hard for this time. Anything in this budget for us?From GeraldinThere are a couple of things here... and a few unknowns. Minister for Public Expenditure Jack Chambers did announce a “permanent reduction to the student contribution fee of €150”, which brings the fee down to €2,850 from €3,000.The disregard of the first €3,000 in fees before tax relief can be claimed will be adjusted to match this. So you will, as now, be able to claim tax relief against the fees of your second and third children at 20 per cent. Also, as now, you will be entitled to a rent tax credit if you’re paying their rent – at least on one property.Chambers in his speech also said: “I will also provide for enhanced and new student contribution fee grants for families with more than one child attending higher education.”What that means we will have to wait to find out. SUSI maintenance grants will increase by 4.5 per cent. The Minister said the grant changes will benefit over 150,000 students and their families.The SUSI grant increases and rent tax credit changes – it rises by €150 for a single person to €1,150 and by €300 for a couple to €2,300 – kick in from January. – DCHousingIllustration: Paul Scott Q: Is the rent tax credit increase applicable to 2026?From DavidThe rent tax credit is increasing by €150 to €1,150 for a single person and by €300 to €2,300 for a couple.Those increases will apply only for the 2027 and 2028 tax years – not this year – so you will be able to claim only at the existing level – €1,000 for a single person or €2,000 for a couple – for 2026. – DCHousingIllustration: Paul Scott Q: Will the increased Help to Buy not just result in increased house prices? Has the Government determined the pros of doing this will outweigh the cons?From FionaA: There is an ongoing debate as to whether the Help to Buy scheme is of genuine assistance to aspiring first-time homebuyers or simply something that only further inflates property prices.From a Government perspective, it is certainly seen as giving the impression of positive action to support homebuyers.One issue with the latest increase in the amount available under the scheme is that the €500,000 cap on properties that it applies to remains in place, effectively locking swathes of homebuyers in Dublin out of the market. – DCInvestment SchemeIllustration: Paul Scott Q: Now that the Government has brought out this investment scheme, do you believe it is likely the momentum to do away with the deemed disposal rule for exchange traded funds will stall, or do you still see progress towards eventually scrapping that rule?From Liam SweeneyA: The Government has committed even in this budget to “continue the work on the wider [investment] regime, including the rate of taxation, deemed disposal and the administrative burden facing investors” with Minister for Finance Simon Harris also saying: “I intend to make further progression removing barriers to investment.” – DCIncome TaxIllustration: Paul Scott Q: Was there any indication the Mortgage Interest Tax Credit would be extended?From StephenA: The mortgage interest tax credit was conspicuous by its absence from the budget speeches. The credit is due to expire at the end of this year and, despite the fact that mortgage rates are now rising again, it appears that it may be allowed to expire. – DCSolar panelsIllustration: Paul Scott Q: What does this budget mean for homeowners with solar panels? Many people have installed solar panels at considerable cost, banking on selling a certain amount of electricity back to the grid, to help cover the cost.From NualaA: The exemption from income tax, USC and PRSI for the microgeneration of electricity is being increased from €400 to €600 for profits arising to an individual who generates energy from renewable resources for their own consumption.The exempted profits are those arising from the domestic generation of electricity which is supplied to the grid. – BPPensionsIllustration: Paul Scott Q: Was there any movement in the €115,000 relevant earnings cap when applying the age-based percentage limits for tax-free pension contributions? Did the percentage movements change?From StephenA: There was no change in relation to tax relief on contributions to private pension schemes – either in the percentage of income you can put into a pension in a year for tax relief purposes or the €115,000 cap on earnings against which those percentages apply. – DCIncome TaxesMinister for Public Expenditure Jack Chambers and Minister for Finance Simon Harris during a photocall at Government buildings ahead of their respective speeches. Photograph Nick Bradshaw / The Irish Times Q: The income tax band has been raised to €46,500. Is this double indexed to make up for no indexation in last year’s budget?From AndreeaA: The Government is not likely to admit that the scale of the increase this year has been influenced by their failure to do anything on the standard rate band in the last budget. However, Minister for Finance Simon Harris did say: “I want people at home to know that we’ve heard loud and clear the importance of a personal income tax package.” The €2,500 increase is slightly more than had been expected, but only slightly. Anything below a €2,000 increase would have been seen as a letdown. – DCInvestment SchemeIllustration: Paul Scott Q: How much control do individuals have into the investments made under the scheme?From Katie O’ShaughnessyA: We don’t yet know how products under the scheme will be designed. They will not become available until July of next year. However, you would expect that there will be a fair degree of choice among providers in the range of investments and investment approach. And it also appears there will be nothing to prevent people moving investments from one product to another. – DC