Calculation basis, sources and review
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.
- Publisher
- Count.ie, operated by K Imports
- Page last updated
- — explanatory content and transparency information, not a new rules verification.
- Documented source check
- Professional review
- No named independent professional review is recorded for this tool.
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.
Uses the cited Revenue guidance for the stated method and scope. This is not Revenue approval or endorsement.
Source references
- Budget 2027 announced investment measures
- Tax Policy Changes, pages 5 and 16
- Minister's Budget 2027 speech: threshold example and planned launch
- Revenue ETF tax treatment and eight-year deemed disposal
- Revenue investment undertakings: eight-year events and tax credits, section 4.4
- Finance Act 2025 fund exit-tax rate changes
- Revenue CGT calculation and personal exemption
Estimates, not financial, tax, legal or accounting advice. How our dates and checks work. Report a correction.
How could an Irish Investment Account compare with ETF and CGT investing over 5, 10 or 20 years?
Compare the announced Irish Investment Account with an ETF exit-tax model and a CGT capital-growth asset over 5, 10 or 20 years. Equal cash does not mean equal after-tax returns. Eight-year fund tax can reduce compounding, but the account's value tax can lose at low growth or higher fees. This fresh-account scenario uses frozen rates and hypothetical capital growth, not a recommendation. The €50,000 threshold concerns average daily value, not lifetime savings.
How the calculation works
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.
First-year contribution (€): A fresh account, funded on 1 January 2028. This is the entire first-year contribution, not an existing portfolio transfer. Annual contribution from year 2 (€) is entered as 12,000 in the illustration. Keep the unit shown on the field when substituting your own measurement or amount. Assumed annual capital growth (%): Hypothetical price growth, excluding dividends. The same smooth growth assumption applies to all paths; returns are not guaranteed. Comparison horizon selects the calculation case; this illustration uses “20 years”.
Worked example
A fixed illustration uses 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. All remaining illustrated settings are listed in the example-input disclosure below. These are reproducible sample figures, not saved visitor inputs; this text does not change when you edit the interactive form.
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.
Frequently asked questions
What happens if I increase assumed annual capital growth (%) in this example?
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.
What assumptions should I check for Irish Investment Account simulator?
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.
Fixed worked example results
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.
Illustration only, not your entered figures. Use the complete example inputs below, selected options and stated limitations when quoting these results.
| Result | Example value |
|---|---|
| Investment Account Value | €383,926.57 |
| Etf Net Value | €347,769.25 |
| Cgt Net Value | €362,269.10 |
Exact inputs used in the worked example
- First-year contribution (€)
- 12,000
- Annual contribution from year 2 (€)
- 12,000
- Assumed annual capital growth (%)
- 5
- Comparison horizon
- 20 years
- Ordinary investment tax assumptions
- 2027 comparison: ETF 35% / CGT 31%
- Common annual fee assumption (%)
- 0
- Extra Investment Account fee (%)
- 0
- Available final-year CGT exemption (€)
- 1,270
Cite this calculation example
Count.ie. Irish Investment Account simulator: fixed worked example. Page updated 2026-10-09. https://count.ie/finance/irish-investment-account/#worked-example
This citation describes the fixed example above, not your entered figures. Include the complete assumptions and relevant year when quoting a result. Official sources remain the authority on the underlying rules.
Link to the worked exampleFixed example, assumptions and sources (JSON)AI discovery index
How this calculator works
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.
| Step | Formula or calculation | When it applies |
|---|---|---|
| Equal funding | First-year deposit ≤ €12,000; each later annual deposit ≤ €12,000. Same deposits apply to all three paths. | A fresh account from 1 January 2028. Start-of-year contributions; no existing transfers or July–December 2027 launch-year calculation. |
| Daily growth and fee drag | 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. | 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. |
| Account value tax | Average daily value = sum of daily closing values ÷ days in year. Annual value tax = 1% × max(0, average daily value − €50,000). | 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. |
| Fund deemed disposal | At each lot's eight-year anniversary: tax = max(0, rate × max(0, lot value − original cost of retained units) − retained earlier tax credit). | 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. |
| Funding fund tax | Retained share = (lot value − tax) ÷ lot value. Remaining cost = prior cost × retained share. Remaining credit = (prior credit + new tax) × retained share. | 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. |
| Values after hypothetical sale | 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)). | 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. |
Assumptions and limits
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.
Explanation of the implemented calculator, not independent professional review, enactment verification or a promise of AI citation. See the source links and review scope above.