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Irish Times
08-05-2025
- Business
- Irish Times
Ulster Bank is on track to return its banking licence
Ulster Bank is on track to return its banking licence in the Republic in the coming months after 165 years in the market, following the transfer of unclaimed customer deposits to a trust, according to sources. The bank, a unit of NatWest Group, may hand back the licence to the Central Bank of Ireland as early as next month, though the timing could drift into the third quarter, the sources said. Joe Brennan has the details. Ireland has strong potential to develop 'a globally competitive offshore wind supply chain , if efforts are aligned on all-island basis, according to a report commissioned by InterTradeIreland (ITI). Completed by Everoze energy consultants, it highlights the scale of the economic opportunity in offshore wind for small and medium businesses, if supported by coherent policy objectives by governments in both jurisdictions, Kevin O'Sullivan reports. READ MORE We should expect more of the kind of cyber security breac h that hit M&S and not just because of the shortage of skilled IT professionals. The current macro conditions are ideal for emboldening both high grade professional hackers, like the Scattered Spider group being blamed for the M&S hack, and state level actors, writes Emmet Ryan in his column. Goodbody Stockbrokers, Cantor Fitzgerald, the Irish Aviation Authority, and Uniphar's Allcare and Hickey's Pharmacy groups were among the 25 companies that reported the highest median hourly pay gap between the male and female employees last year, according to data collected by Under the Gender Pay Gap Information Act , companies with more than 150 employees are required to create and publish a report outlining their gender pay gap across a number of metrics, writes Hugh Dooley. The Spanish government is taking the unusual step of opening a public consultation on a banking takeover that would lead to the merger of two of the country's biggest lenders, Cantillon tells us, whilst also saying that there are perhaps two ways of looking at the Department of Finance's latest warning over corporation tax: good and bad. Cantillon also notes the ongoing difficulties at C&C. As in life, the important things in business aren't always the most exciting. You hardly get a thrill from doing the bins or making sure you lock the door behind you on the way to work. Yet, like the peace of mind these acts give, a solid backup strategy is vital for any company's tech infrastructure , writes Emmet Ryan. Samsung's recently released mid-range smartphone not only looks like a high-end phone, it largely acts like one too. It comes with an OLED screen, something that would have been unthinkable until relatively recently. Ciara O'Brien reviews the Samsung Galaxy A56 . The boss of Marks & Spencer told shoppers last Friday that the retailer was working 'day and night' to fully restore its operations and 'get things back to normal as quickly as possible' following a cyber attack that started a fortnight ago and has wiped more than £600 million (€705 million) off its value. Laura Onita reports on its ongoing woes. Stay up to date with all our business news: sign up to our Business Today daily email news digest. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers.
Irish Times
08-05-2025
- Business
- Irish Times
Three-quarters of large Irish companies have wage gaps in favour of men
Goodbody Stockbrokers , Cantor Fitzgerald, the Irish Aviation Authority and Uniphar's Allcare and Hickey's Pharmacy groups were among the 25 companies which reported the highest median hourly pay gap between men and women employees last year, according to data collected by Under the Gender Pay Gap Information Act , companies with more than 150 employees are required to create and publish a report outlining their gender pay gap across a number of metrics. Across the data for nearly 750 companies collected by approximately three-quarters of companies had a median hourly wage gap in favour of men with the largest disparity at Uniphar's Allcare Pharmacies of 60.4 per cent. Also among the five largest wage gaps was the Irish Aviation Authority, with a 54 per cent media pay gap, which, it said, 'primarily arises due to lower numbers of females in specialist aviation roles such as pilot and engineering roles, as well as low numbers in managerial roles such as accountable manager or nominated postholder roles.' READ MORE Goodbody Stockbrokers had a median hourly wage gap of 46.6 per cent, with its mean standing at 41.5 per cent. Goodbody said that 'fewer females than males continue to occupy the highest paid roles in the firm', with just 15 per cent of its highest paid quartile being women as opposed to 55 per cent of its lowest quartile. [ Gender pay gap increased at three government departments during 2024 Opens in new window ] The Irish wing of US investment group Cantor Fitzgerald had mean and median hourly pay gaps of more than 40 per cent, with women making up just 17 per cent of their top 25 per cent of earners despite making up 37 per cent of their total staff. Of the remaining companies, nearly 20 per cent reported a pay gap in favour of women, with the largest disparity in the Chief State Solicitor's Office which reported a pay gap of 40.18 per cent. The Economic & Social Research Institute found an average median pay gap of 30.9 per cent in favour of women, which it said 'reflects not just the higher proportion of females in senior roles but also the fact that pay scales are wider at senior levels.' Construction companies made up eight of the 15 companies with the lowest representation of women in the top 25 per cent of earners. Conversely, 12 of the 15 companies with the lowest representation of men in the lowest quartile of pay, are in the human health and social work activities sector, with women making up between 83.6 per cent and 96 per cent of the top earners. The data for nearly 750 companies was compiled from the individual reports by technology worker Jennifer Keane, founder of PayGap,ie, who said her experience of gender pay bias served as the motivation for the project. The project is the product of nearly 200 hours of work since the start of the year, she said, noting that, in her experience, nearly 15 per cent of the pay gap reports include errors or omissions. All organisations with more than 50 employees must also report on their gender pay gap for the first time this year and Ms Keane will look to expand her database when that happens, she said, noting that a State-run database for the information is due to launch this year.
Irish Times
06-05-2025
- Business
- Irish Times
Gift your way to a lower inheritance tax bill
Some people argue that it's only a minority who actually pay it, so why the fuss? Others, such as former minister Alan Shatter, describe it as 'State-sanctioned graveside robbery of assets'. But whatever side you're on, there's no doubt that reducing a tax bill on your life's work is something most people would look to do. When it comes to inheritance tax , or capital acquisitions tax (CAT) as it is more formally known, tax free thresholds are on the way up. The parent-to-child allowance now stands at €400,000; other close linear relatives is €40,000; and so called 'strangers', which includes cousins and in-laws, is €20,000. However, given the rapid rises in house prices over the past few decades, some families may feel that these levels are still too low. So, what should you do if you fear leaving your loved ones with a hefty tax bill? Gifting, or passing on your assets while you're still alive, may be one route to lower taxes. The author of a new report on inheritance tax planning has some tips on how to do it. READ MORE Tread carefully While once upon a time families may have been happy to leave bequests to be acted upon after their death, many are now being more proactive, mindful of potential tax bills that they might leave behind. Catriona Coady, head of tax at Goodbody Stockbrokers and author of A Lasting Legacy: Guide to Inheritance and Estate Planning in Ireland , says that people often start looking to gift during their lifetime after they've done their own financial review. 'I wouldn't rush to gift without having considered my own position,' says Coady. 'It mightn't be in your best interest to provide a lump sum to a child that you may need.' So, if you are considering passing on your assets, the first bit of advice is to look after yourself first. 'You can make a more informed decision when you look at your own cash flow position. There can be a sort of a lack of awareness around what your own requirements can be as time goes by,' advises Coady. The last thing you want is to leave yourself short as you age. And bear in mind that money offered as a loan to family may never end up being paid back. 'Loans very often become outright gifts, where there is no prospect of them ever being paid back, so it is important for the giver to be mindful of this and that the expectations on both parties to the loan are clear,' advises Coady. Apart from possible tax savings, another benefit of gifting is that it can help end speculation as to what might become of the family's assets. 'You will often hear, 'There was a collective sigh of relief when I explained what my plans were',' she says. Good communications are key. As Coady notes, parents are often very keen not to repeat the mistakes of the past in their own families. Small gifts Among those for whom it is viable, there can be tax savings when getting ahead of the game. 'When the potential growth in the value of an estate is determined, taking into account annual living expenses, it can make sense to gift assets early,' she says. One of the main tools to avail of when gifting to reduce possible taxes is the small gift exemption. Through this, it is possible to gift anyone €3,000, tax free, each year. As a family's wealth increases, so too does their use of this. 'I would say that there's definitely more awareness of it,' says Coady, noting that while some people proactively avail of the exemption, others say 'Oh, we must get around to doing that.' Of course, the main value in the scheme is its use over a long period of time rather than as a one-off. Consider an annual gift of €6,000 (€3,000 from each parent) to a child from birth until they reach age 18, growing at a rate of 3 per cent annually. 'This could be as much as €140,000 by age 18, meaning that this value has been removed from the estate. It is important to remember that with the small gift exemption, any amount up to €3,000 annually is exempt,' she adds. 'It doesn't have to be €3,000 – it can be what you can afford.' Be careful of how this gift is made however – if not done correctly, it can lead to an unexpected tax bill as happened in the case of a young man a few years ago . So, some type of formal arrangement might be warranted, such as a bare trust. 'It's really around keeping track of what you do, so that the intent of what it is you're doing is clear,' says Coady. Another point to consider if you go down the bare trust route is what the bare trust is invested in and what taxes might apply. Typically, Coady says, investments that are subject to life assurance exit tax or investment undertakings tax (41 per cent rate) are selected because a tax charge is unlikely to arise on these investments until the eight-year anniversary of holding the investment. 'This can also provide a degree of simplification as there is no ongoing need to calculate income tax and CGT [capital gains tax] on the investment income and gains.' What about backdating it if you haven't availed of it thus far? 'No, is the answer to that,' says Coady. But do you want to relinquish control of the funds to children once they become adults at age 18? 'That would be a big concern for parents and grandparents,' says Coady. 'There might be a feeling at age 18 that they mightn't be fully equipped for such a sum.' If control is an issue for you, and you have a sizeable pot to play with, there might be merit to putting a family partnership in place. Family partnership It's not for everyone. Given the costs involved, etc, it's not suitable for payments of €3,000 a year, Coady says. But a family partnership can be a way of gifting while retaining an element of control. It's a significant undertaking that will require legal drafting, possibly registration and annual filings with the Companies Registration Office and ongoing tax filing requirements with the Revenue Commissioners . 'The benefits of such a partnership from an asset protection and tax perspective would need to exceed the costs of establishing it and the ongoing cost of running it,' says Coady, adding: 'Being in a position to run and understand this partnership is also important.' But it can be tax efficient. Consider a family, with two children, that invests €800,000 in a family partnership in 2025. No CAT will arise on the €400,000 payment per person. And neither will the gains be liable to CAT, so if the original investment grows to €1 million by 2031, the children will not be liable to CAT on this €200,000 investment growth. But what if the parents had kept the cash and gifted it when the pot reached €1 million? According to Coady, this would result in a tax bill of about €31,000 per child (based on them using their full €400,000 tax-free allowance). So, the partnership means savings of about €62,000. Another option is whereby the parents lend the partnership €1 million on an interest-free basis. Again, no CAT will arise if the 'free use value' doesn't exceed the small-gifts exemption of €3,000 per child per year. But remember, while tax efficient, a partnership is not tax free. 'There can be a misconception that you will have really efficient tax savings,' says Coady, but, as she points out, while CAT might be avoided, the partnership will incur income tax/CGT in the normal way. Another option is a discretionary trust. These can be established while you're alive, or under a will, and Coady says they can be useful where exemptions from taxes can be obtained, such as for certain beneficiaries, for example a beneficiary with disability or one who is vulnerable. It does require trustees who hold the assets on behalf of the original owner, however, so tread carefully when appointing these. Gifting a house When passing on an asset such as a property, a number of taxes can arise. Unlike upon death, where there is no CGT, a parent gifting a property which is valued at considerably more than they originally paid for it will face a sizeable CGT bill. And on the other side of the transaction, the child might have a CAT liability. Yes, these can be offset against each other; however, 'it doesn't often match up'. 'It's wrong to assume that it could be a wash through,' says Coady. 'You do have to sit down and do the figures.' On the other hand, if you have assets that would sell at a loss, it can make sense to pass them on now, as there will be no CGT. However, there may be CAT/stamp duty. Family loans Not quite the same as a gift, a tax liability can still arises on a family loan if it is given at below market rates. 'The taxable value of this gift is the highest rate of return the person making the loan could achieve if the funds were invested on deposit,' says Coady. However, even if the loan is issued at a lower interest rate, it often won't incur actual tax if the amount involved is below the annual small gift exemption threshold – presuming you have not already availed of that relief. However, new reporting rules effective from January 1st, 2024, mean the beneficiary needs to report the loan to Revenue if it exceeds €335,000. 'Such loans should be documented and remember that a loan that is forgiven or written off will give rise to gift and inheritance tax implications,' says Coady. Given the time value of money, however, the CAT owed on a €50,000 loan given 20 years previously may be significantly less than it would have been if gifted to buy a home today.
