Hard-pressed savers searching for a return on their funds should note that the rate of tax on savings in Special Investment Accounts (SIAs) will rise from 10 per cent to 20 per cent from April 6th, 1999. The increase will bring the rate of Deposit Interest Retention Tax on this type of savings product into line with the 20 per cent rate on Special Savings Accounts (SSAs).

The Minister for Finance has also raised the maximum amount of money that can be invested in SSAs from £50,000 to £75,000, the limit that currently applies to SIAs. The Irish Association of Investment Managers is vehemently opposed to these changes and has indicated that it will be seeking to have them reversed. SIAs are a riskier type of investment than SSAs as 55 per cent of the funds must be invested in Irish publicly quoted companies. But the rewards tend to also be greater than SSAs and this may have influenced the tax changes.