Chartered Accountants Ireland has reiterated its concerns about the proposed changes to agricultural property relief (APR) and business property relief (BPR), due to come into effect in April 2026, and the disproportionate impact these changes will have on Northern Ireland. The largest professional body on the island of Ireland that represents over 5,500 members in Northern Ireland has advocated extensively for a specific carve out from the rules to be included in the draft legislation to protect Northern Ireland’s economy. UK Tax Manager with Chartered Accountants Ireland, Leontia Doran said  “The proposed changes are already having massive ripple effects across the UK economy, but most notably for the farming community. These changes are disappointing and particularly damaging in Northern Ireland where family-owned businesses and farms are the heartbeat of the economy. 84% of businesses here are either family owned or managed, and they support over 325,000 jobs.  “A carve-out is needed to exempt genuine farming activity and protect family-owned businesses in NI. The Government could have included a threshold which would have continued to provide smaller farms and businesses with 100% relief if their farming and/or business assets comprise a minimum proportion of their overall estate. It is also disappointing to see that no transitional measures have been announced to protect older taxpayers. The announcement that any unused allowance will be transferable between spouses is welcome. This is the minimum that could have been done to remove the legislation’s cliff edge effect for smaller farms and businesses. More is needed to support genuine farming activity and family-owned businesses here in NI.” Personal tax thresholds The Chancellor has confirmed that the income tax and National Insurance Contributions (NICs) thresholds will remain frozen at their current level until 2031. Doran noted “The continuing freeze on personal tax thresholds is having an ever-increasing effect on people’s net after tax income and is expected to bring many more taxpayers into the higher rate tax bracket by 2030/31, a phenomenon known as "fiscal drag". This is likely to have a strong disincentive effect on decisions to take on extra work and will reduce household spending power. Coupled with the changes to employers’ NICs from April 2025, this is likely to lead to a more stagnant labour market, damaging productivity further.  “Policy measures are seriously needed to drive Northern Ireland’s productivity, the profitability of its businesses, and by extension boost both corporation and income tax takes so that we can make this a thriving place to live and work for all our citizens.” Northern Ireland Corporation Tax To unlock the economic potential of the region and its dual market access, and drive FDI, the Institute has been engaged in a campaign for a reduced rate of corporation tax which is more closely aligned with the rate across the rest of the island.    Leontia Doran concluded “At a time when the Government has been grappling with how to grow the economy, it might initially appear counter-intuitive to seek a reduction in the corporation tax rate in Northern Ireland. However, a reduction in this rate would in the longer run ultimately increase tax take by driving the creation of better jobs and incentivising business growth.  “Add to this higher value FDI and the gains for Northern Ireland would set a real benchmark for what can be achieved with ambitious tax policies. This is something our members want and which we will continue to advocate for in 2026.”  

On 20 November, the District Societies of Chartered Accountants Ireland jointly hosted a webinar on AI featuring Marie Toft. This session covered: What AI is and how it works What AI can and can’t do Legal obligations around using AI Risks and opportunities for Chartered Accountants Real-life examples of AI in accounting A recording of this session is available to view, for free and on demand, HERE More speakers in this AI Advantage series will be announced soon.

This week the Institute received formal correspondence from the Department of Social Protection (DSP) regarding My Future Fund. The letter, which members may have seen reported in media yesterday, emphasises that it is an offence to hinder employees from participating in My Future Fund. It clarifies that, despite recent reports, there has been no legal change requiring employers to enrol staff in occupational pension schemes to avoid automatic enrolment. The DSP has outlined that they understand that in some instances, employees are being compelled to join schemes with minimal employer contributions - often just 1% of salary – which falls short of the contributions required by My Future Fund. Such arrangements may deprive employees of meaningful pension benefits and could constitute an offence under Section 128 of the Auto Enrolment Retirement Savings System Act 2024 (AE Act). Any cases where employees are illegally obliged to join another pension scheme, preventing them from accessing My Future Fund will be fully investigated by DSP. Members are encouraged to familiarise themselves with these developments and ensure clients are fully informed. Background on Auto Enrolment/My Future Fund From 1 January 2026, the Automatic Enrolment Retirement Savings System – branded as My Future Fund - will come into effect. This initiative, legislated under the AE Act, is designed to provide employees who currently lack pension coverage with a secure and quality-assured way to save for retirement. Eligible employees - those aged over 23 and under 66, earning more than €5,000 in any 13-week period, and not already enrolled in a payroll-based pension scheme - will be automatically enrolled. The scheme will be operated and regulated by the newly established National Automatic Enrolment Retirement Savings Authority (NAERSA). Clarifications and compliance issues raised by the DSP The Department outlined that it has come to their attention that contribution levels under My Future Fund will be significantly higher than those currently reported in some occupational schemes, where employer contributions may be as low as 1% of salary. According to the correspondence, such low contribution rates are considerably below the initial and future contribution levels set for My Future Fund. The Department advises that any approach which results in employees being enrolled in schemes with substantially lower benefits could raise compliance concerns under the AE Act. The Department confirms that there has been no legislative change requiring employers to enrol staff in occupational schemes to circumvent automatic enrolment. However, it has become aware of cases where employees are being compelled to join such schemes, even where membership is not required under their contracts of employment. This practice, combined with very low employer contributions, could prevent employees from accessing My Future Fund and may constitute an offence under Section 128 of the AE Act. The letter also highlights compliance obligations. Employers enrolling staff in occupational schemes must meet disclosure requirements under the Pensions Act, ensuring employees receive full and accurate information about the terms and benefits of any scheme they join. Furthermore, sharing employee details with pension administrators without explicit consent may breach data protection law, exposing employers to legal and reputational risks. Finally, the Department notes that NAERSA, in consultation with the Pensions Authority, is considering developing standards to determine whether an occupational scheme qualifies as an exempt scheme under the AE Act. These standards will aim to include minimum contribution rates and conditions to ensure that any exempt pension schemes offers benefits at least as favourable as those provided under My Future Fund. Members should monitor these developments closely, as they will directly impact employer obligations and the advice professionals provide to clients.