Budget 2027 · Business and VAT
Budget 2027 business: VAT, R&D credit, capital gains and inheritance tax
Business taxes, investment and inheritance rules all feature in Budget talk. Here are the current rates and what has been reported for Budget 2027.
Updated 4 October 2026. Budget day is Tuesday 6 October 2026.
Before, now and Budget 2027
Business and VAT: what's going up, what's going down
In Budget 2026, of the 2 rates shown: 1 went up, 1 went down and 0 stayed the same.
| What | Before Budget 2026 | Now | Budget 2027 |
|---|---|---|---|
| VAT on food, catering and hairdressingHospitality rateFrom 1 July 2026Source: Citizens Information | 13.5% | 9%−4.5 pts | Due 6 Oct |
| R&D tax creditOf qualifying spendingSource: Citizens Information | 30% | 35%+5 pts | Due 6 Oct |
Predictions
What's expected in Budget 2027
From named reports, with exact quotes. These are not decisions until Budget day.
3 likely1 unlikely
- Likely
A new tax-free savings and investment account
Modelled partly on Swedish and UK accounts, with a yearly limit. The details are due in the Budget.
The exact details of these limits are expected to be announced as part of Budget 2027.
Davy · 4 Sept
Will it happen? - Likely
Higher inheritance tax thresholds
Thresholds are expected to rise across the bands, without making the Category A threshold for children equal to others.
meaning the thresholds will be increased across all bands.
Irish Examiner, Elaine Loughlin · 28 Sept
Will it happen? - Likely
A packet of cigarettes moves to €20
One of the few tax increases expected, to help pay for other measures.
a packet of cigarettes is set to move to €20
The Irish Times · 16 Sept
Will it happen? - Unlikely
No cut to the 33% capital gains tax rate
Senior ministers have called the rate high, but a targeted relief for entrepreneurs is seen as more likely.
However, a headline reduction now appears less likely.
Davy · 4 Sept
Will it happen?
Questions
Business and VAT: your questions answered
9% from 1 July 2026, down from 13.5%, under Budget 2026.
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