The Irish ProShare Association (IPSA) has welcomed two significant measures announced in Budget 2026 aimed at supporting entrepreneurship, investment, and talent retention.
The Government confirmed that the Key Employee Engagement Programme (KEEP) will be extended until the end of 2028. KEEP provides for share option incentives in SMEs and scaling companies, enabling them to compete more effectively for talent in a competitive labour market.
The Budget also announced an increase in the lifetime limit for Revised Entrepreneur Relief, with the 10% Capital Gains Tax (CGT) rate now applying on qualifying gains of up to €1.5m – up from the previous €1m cap. This measure is designed to reward entrepreneurs, encourage reinvestment, and strengthen Ireland’s position as a hub for innovation and high-growth businesses. The equivalent rate in the UK is £1m.
Speaking about the KEEP scheme, IPSA Chair Marie Flynn said: “The extension of the KEEP to 2028 recognises the important role of share-based incentives in helping Irish SMEs and scaling companies attract and retain talent.
IPSA Chair Marie Flynn
“However, the real extent of the Government’s commitment to KEEP will come with the publication of the Finance Bill. We will be looking closely to see whether long-standing issues around complexity have been addressed, and whether the scheme will be simplified to make it easier for companies – particularly groups of companies – to access and administer KEEP in practice.”
On the decision to increase the lifetime limit under Revised Entrepreneur Relief, Ms Flynn added: “We welcome the Government’s decision to enhance Entrepreneur Relief in Budget 2026. Increasing the lifetime limit to €1.5m is a positive and pragmatic step that will reward risk-taking, support job creation, and strengthen Ireland’s competitiveness as a place to start and scale a business. This change will help sustain economic growth and innovation in the years ahead.”
