Capital gains tax

CGT is a tax on a capital gain arising on the disposal of assets owned by you. At its simplest, deducting the price you paid for an asset when you acquired it from the sale proceeds when you dispose of it gives you the chargeable capital gain.

All forms of property are regarded as assets for Capital Gains Tax purposes whether situated in or outside the State. Examples of assets are: 

  • Land
  • Shares
  • Goodwill
  • Currency, other than Irish currency 

There are a number of exemptions from CGT such as:

  • Gains from the disposal of Governmental Stocks and Securities.
  • Gains from the disposal of tangible movable property, where the amount or value of the consideration does not exceed €2,540.
  • Gains from the disposal of wasting assets, i.e. assets with a predictable life of less than 50 years, for example, a private motorcar, livestock etc.
  • Gains from the disposal of your principal private residence.
  • Prize Bond, Lottery and Gaming winnings.

In calculating the amount of tax payable, deductions are allowable for incidental costs of acquisition, such as solicitor’s fees, stamp duty etc. and incidental costs of disposal such as, solicitors/auctioneers fees etc. In addition, where an asset was acquired before 2003, inflation relief may be available, effectively adjusting the cost in line with a published inflation factor.

The first €1,270 of taxable gains by an individual in a tax year are exempt. In the case of a married couple this exemption is available to each spouse but is not transferable.

Below shows the effect of residence/ordinary residence/domicile on capital gains tax status in Ireland:

Resident?

Ordinarily
resident?

Domiciled?

 

Liable to Irish CGT
on:

Yes

Yes

Yes

 

Worldwide gains

Yes

No

Yes

 

Worldwide gains

No

Yes

Yes

 

Worldwide gains

No

No

Yes / No

 

Irish specified assets

Yes

Yes

No

 

Irish gains and other gains as remitted

Yes

No

No

 

Irish gains and other gains as remitted

No

Yes

No

 

Irish gains and other gains as remitted

In the current market, our Capital Gains Tax planning services may be of particular interest to those considering disposing of assets. We will calculate your Capital Gains Tax liability, advise on ways of reducing it including the utilisation of tax losses, and identify the relevant payment dates.

Please call or email us today if you need further information on Capital Gains Tax or on any of the above.

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The information contained on this website may be subject to change and accordingly is not a substitute for professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional advisor. This firm shall not be responsible for any loss whatsoever sustained by any person who relies on any information on this website.