{
  "schemaVersion": 1,
  "kind": "Fixed calculator reference example",
  "id": "investment-account",
  "name": "Irish Investment Account simulator",
  "canonicalUrl": "https://count.ie/finance/irish-investment-account/",
  "referenceUrl": "https://count.ie/calculator-reference/investment-account.json",
  "audienceLocale": "en-IE",
  "siteFocus": "Ireland",
  "question": "How could an Irish Investment Account compare with ETF and CGT investing over 5, 10 or 20 years?",
  "answerSummary": "Irish Investment Account simulator example — First-year contribution (€): 12,000; Annual contribution from year 2 (€): 12,000; Assumed annual capital growth (%): 5; Comparison horizon: 20 years. Investment Account Value: €383,926.57; Etf Net Value: €347,769.25; Cgt Net Value: €362,269.10.",
  "method": "Equal start-of-year contributions and smooth daily capital growth. Investment Account: annual 1% on positive average daily value above €50,000. Ordinary fund: separate eight-year deemed-disposal lots and final tax credit. CGT asset: final capital gain less one available annual exemption. Values shown after hypothetical liquidation at each checkpoint.",
  "methodology": "Equal start-of-year contributions and smooth daily capital growth. Investment Account: annual 1% on positive average daily value above €50,000. Ordinary fund: separate eight-year deemed-disposal lots and final tax credit. CGT asset: final capital gain less one available annual exemption. Values shown after hypothetical liquidation at each checkpoint.",
  "calculationSteps": {
    "explanation": "Equal start-of-year contributions and smooth daily capital growth. Investment Account: annual 1% on positive average daily value above €50,000. Ordinary fund: separate eight-year deemed-disposal lots and final tax credit. CGT asset: final capital gain less one available annual exemption. Values shown after hypothetical liquidation at each checkpoint.",
    "coverage": "explicit-model-steps",
    "steps": [
      {
        "step": "Equal funding",
        "formula": "First-year deposit ≤ €12,000; each later annual deposit ≤ €12,000. Same deposits apply to all three paths.",
        "scope": "A fresh account from 1 January 2028. Start-of-year contributions; no existing transfers or July–December 2027 launch-year calculation."
      },
      {
        "step": "Daily growth and fee drag",
        "formula": "Daily growth factor = (1 + annual capital growth ÷ 100)^(1 / days in year). Daily fee-retention factor = (1 − annual fee fraction)^(1 / days in year). Daily closing value = opening value × both factors.",
        "scope": "Add the extra account fee only to that path. Smooth daily returns and return-drag fees are modelling assumptions, not quotes or fee-deductibility calculations."
      },
      {
        "step": "Account value tax",
        "formula": "Average daily value = sum of daily closing values ÷ days in year. Annual value tax = 1% × max(0, average daily value − €50,000).",
        "scope": "Tax is rounded to cents and deducted at year end. €50,000 is not a lifetime contribution or gains allowance. The account remains an announced measure; provider collection details may differ."
      },
      {
        "step": "Fund deemed disposal",
        "formula": "At each lot's eight-year anniversary: tax = max(0, rate × max(0, lot value − original cost of retained units) − retained earlier tax credit).",
        "scope": "Each annual contribution is a separate lot. The first lot's events start at the beginning of model years 9 and 17. Announced 35% or frozen pre-Budget 38%, held constant."
      },
      {
        "step": "Funding fund tax",
        "formula": "Retained share = (lot value − tax) ÷ lot value. Remaining cost = prior cost × retained share. Remaining credit = (prior credit + new tax) × retained share.",
        "scope": "Tax is paid by redeeming that lot's units immediately after the event; not free external cash. This separate-lot illustration excludes alternative fund pooling/provider conventions."
      },
      {
        "step": "Values after hypothetical sale",
        "formula": "ETF net = max(0, sum across lots of [lot value − rate × max(0, lot value − remaining cost) + retained deemed-tax credit]). CGT net = max(0, asset value − rate × max(0, asset value − contributed cash − available final-year exemption)).",
        "scope": "Account net is the balance after its annual value taxes. Earlier chart checkpoints are hypothetical sales, not actual disposals. CGT uses 31% or frozen pre-Budget 33%; one final-year exemption only. No dividends, inflation or personal loss offsets."
      }
    ],
    "limitations": "Announcement simulator, not an available-account or enacted-law claim. Fresh account from 1 January 2028; no launch-year proration or existing transfers. Contribution cap €12,000 per year; rates frozen for 5/10/20-year scenarios. No dividend income, foreign withholding, personal loss offsets or inflation. Fees and tax-payment timing are stated modelling assumptions, not confirmed provider rules. All inputs stay local.",
    "authority": "Explanation of the implemented calculator, not independent professional review, enactment verification or a promise of AI citation."
  },
  "relatedCalculators": [
    {
      "id": "cgt",
      "name": "Capital gains tax",
      "url": "https://count.ie/finance/capital-gains-tax/",
      "purpose": "Compare compounding and the tax treatment of investment gains."
    },
    {
      "id": "compound-savings",
      "name": "Compound savings & inflation",
      "url": "https://count.ie/finance/compound-savings/",
      "purpose": "Compare compounding and the tax treatment of investment gains."
    },
    {
      "id": "dirt",
      "name": "Deposit interest & DIRT",
      "url": "https://count.ie/finance/deposit-interest-tax/",
      "purpose": "Compare compounding and the tax treatment of investment gains."
    },
    {
      "id": "fund-exit-tax",
      "name": "Fund chargeable-event exit tax",
      "url": "https://count.ie/finance/fund-exit-tax/",
      "purpose": "Compare compounding and the tax treatment of investment gains."
    },
    {
      "id": "pension-projection",
      "name": "Pension fund projection",
      "url": "https://count.ie/finance/pension-projection/",
      "purpose": "Compare compounding and the tax treatment of investment gains."
    },
    {
      "id": "roi",
      "name": "Return on investment",
      "url": "https://count.ie/business/return-on-investment/",
      "purpose": "Compare compounding and the tax treatment of investment gains."
    }
  ],
  "relatedControls": [],
  "assumptionsAndLimitations": "Announcement simulator, not an available-account or enacted-law claim. Fresh account from 1 January 2028; no launch-year proration or existing transfers. Contribution cap €12,000 per year; rates frozen for 5/10/20-year scenarios. No dividend income, foreign withholding, personal loss offsets or inflation. Fees and tax-payment timing are stated modelling assumptions, not confirmed provider rules. All inputs stay local.",
  "interpretation": "Compare investment account value, etf net value, cgt net value using matching periods and units. A total cost, a recurring payment and a percentage answer different questions. Check omitted costs and the timing of payments before using the result as a spending commitment.",
  "example": {
    "kind": "Illustrative, not personalised",
    "values": {
      "firstYearContribution": 12000,
      "annualContribution": 12000,
      "growthPercent": 5,
      "years": "20",
      "taxProfile": "budget2027",
      "annualFeePercent": 0,
      "extraAccountFeePercent": 0,
      "cgtExemption": 1270
    },
    "inputs": [
      {
        "label": "First-year contribution (€)",
        "value": "12,000"
      },
      {
        "label": "Annual contribution from year 2 (€)",
        "value": "12,000"
      },
      {
        "label": "Assumed annual capital growth (%)",
        "value": "5"
      },
      {
        "label": "Comparison horizon",
        "value": "20 years"
      },
      {
        "label": "Ordinary investment tax assumptions",
        "value": "2027 comparison: ETF 35% / CGT 31%"
      },
      {
        "label": "Common annual fee assumption (%)",
        "value": "0"
      },
      {
        "label": "Extra Investment Account fee (%)",
        "value": "0"
      },
      {
        "label": "Available final-year CGT exemption (€)",
        "value": "1,270"
      }
    ],
    "outputs": [
      {
        "key": "investmentAccountValueEuro",
        "label": "Investment Account Value",
        "value": 383926.57,
        "displayValue": "€383,926.57"
      },
      {
        "key": "etfNetValueEuro",
        "label": "Etf Net Value",
        "value": 347769.25,
        "displayValue": "€347,769.25"
      },
      {
        "key": "cgtNetValueEuro",
        "label": "Cgt Net Value",
        "value": 362269.1,
        "displayValue": "€362,269.10"
      }
    ],
    "displayValuesMayBeRounded": true,
    "scopeNote": "Only this fixed case is described. Other modes, dates and eligibility choices can give different results. Values include all public model settings, including dormant options; inputs list the active settings. Use the full input list, method and limitations together."
  },
  "provenance": {
    "publisher": "Count.ie",
    "publisherUrl": "https://count.ie/about/#publisher-profile",
    "pageUpdatedOn": "2026-10-09",
    "sourceCheckedOn": "2026-10-09",
    "reviewScope": "Baseline rules year: 2027. Reviewed scope: Department of Finance Budget 2027 pages 5/16 and minister speech: average daily account value, €50,000 threshold, 1% excess-value tax, €12,000 annual cap and proposed 1 July 2027 launch. Fund 35% is announced; Revenue's 7 October 2026 page publishes 31% CGT and €1,270 exemption. Account implementation and provider operations are not verified.. This does not verify every selectable year, date or Budget announcement profile.",
    "sourceBasis": "Uses the cited Revenue guidance for the stated method and scope. This is not Revenue approval or endorsement.",
    "authorityNote": "Count.ie publishes the calculated example. The linked official sources, where present, remain authoritative for the underlying rules. No official endorsement or professional review is implied."
  },
  "sources": [
    {
      "label": "Budget 2027 announced investment measures",
      "url": "https://www.gov.ie/en/department-of-finance/publications/budget-2027-taxation-measures"
    },
    {
      "label": "Tax Policy Changes, pages 5 and 16",
      "url": "https://assets.gov.ie/static/documents/c6792805/Budget_2027_Tax_Policy_Changes_v2.pdf"
    },
    {
      "label": "Minister's Budget 2027 speech: threshold example and planned launch",
      "url": "https://www.gov.ie/en/department-of-finance/speeches/statement-by-minister-harris-on-budget-2027/"
    },
    {
      "label": "Revenue ETF tax treatment and eight-year deemed disposal",
      "url": "https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-27/27-01a-03.pdf"
    },
    {
      "label": "Revenue investment undertakings: eight-year events and tax credits, section 4.4",
      "url": "https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-27/27-01a-02.pdf"
    },
    {
      "label": "Finance Act 2025 fund exit-tax rate changes",
      "url": "https://www.irishstatutebook.ie/eli/2025/act/18/section/37/enacted/en/html"
    },
    {
      "label": "Revenue CGT calculation and personal exemption",
      "url": "https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/how-to-calculate-cgt.aspx"
    }
  ],
  "frequentlyAskedQuestions": [
    {
      "question": "What happens if I increase assumed annual capital growth (%) in this example?",
      "answer": "Changing assumed annual capital growth (%) from 5 to 5.5, with the other example settings unchanged, changes investment account value from €383,926.57 to €406,174.17. This isolates one input using the form's actual calculation. Compare changes separately rather than attributing a difference to several assumptions at once."
    },
    {
      "question": "What assumptions should I check for Irish Investment Account simulator?",
      "answer": "Announcement simulator, not an available-account or enacted-law claim. Fresh account from 1 January 2028; no launch-year proration or existing transfers. Contribution cap €12,000 per year; rates frozen for 5/10/20-year scenarios. No dividend income, foreign withholding, personal loss offsets or inflation. Fees and tax-payment timing are stated modelling assumptions, not confirmed provider rules. All inputs stay local. The documented baseline is 2027, checked 2026-10-09. This check covers only the recorded scope, not every selectable scenario. Full source notes and exclusions remain below."
    },
    {
      "question": "Is the €50,000 Irish Investment Account threshold a lifetime limit?",
      "answer": "No. The Budget 2027 announcement describes a €50,000 account-value threshold, not a lifetime allowance for contributions or gains. The account's average daily value is used to calculate a yearly 1% tax on the part above that threshold. The €12,000 annual contribution cap is a separate limit. Value tax may still arise when investments fall but the average value remains above €50,000. The account is planned for 1 July 2027, subject to legislation and final operating rules; this forecast starts with a fresh account in January 2028."
    },
    {
      "question": "Does deemed disposal apply to ETFs in an Irish Investment Account?",
      "answer": "The announcement says existing deemed-disposal and exit-tax regimes will not apply to eligible investments held inside the new account. Ordinary accumulating ETFs that fall under the fund-tax regime can still have eight-year deemed-disposal events outside it; not every ETF has that tax treatment. This simulator tracks each annual contribution as a separate lot, pays deemed tax from that lot, and credits eligible earlier tax at final disposal. Its 2027 fund comparator uses the announced 35% rate, not 33%; the frozen pre-Budget comparison uses 38%. Actual fund valuation, pooling and provider administration may differ."
    },
    {
      "question": "Will an Irish Investment Account always beat CGT or ETF investing?",
      "answer": "No. The new account taxes value above its threshold rather than only profit, so low returns or higher account fees can make an ordinary model better. The chart compares equal contributions and the same assumed price growth over 5, 10 and 20 years, after a hypothetical sale at each checkpoint. The CGT asset model excludes dividends and uses only the final year's available personal exemption, up to €1,270. Revenue publishes a 31% standard CGT rate from 7 October 2026; the pre-Budget profile freezes the earlier 33% rate. All rates are held constant for the forecast, not predicted. Market uncertainty, distributions, foreign withholding, inflation and personal loss offsets are excluded. Results are scenarios, not investment advice or guaranteed savings."
    }
  ],
  "citation": {
    "publisher": "Count.ie",
    "title": "Irish Investment Account simulator: fixed worked example",
    "url": "https://count.ie/finance/irish-investment-account/#worked-example",
    "pageUpdatedOn": "2026-10-09",
    "text": "Count.ie. Irish Investment Account simulator: fixed worked example. Page updated 2026-10-09. https://count.ie/finance/irish-investment-account/#worked-example"
  },
  "relatedGuideUrl": "https://count.ie/guides/calculators/finance/irish-investment-account/",
  "privacyNote": "Generated at build time from public example settings. No visitor inputs, saved profiles or chat messages are included. Query parameters do not recalculate this file."
}