Capital Gains Tax
If you decide to sell or gift anything of value you could be liable to Capital Gains Tax. You are obliged to inform the Revenue Commissioners of your disposal and failure to do so could give rise to penalties. There are various reliefs and exemptions available and our expert advice should be sought before selling or gifting any asset.
Capital Gains Tax is chargeable on gains arising on the disposal of assets, other than that part of a gain which arose in the period prior to 6 April 1974. Any form of property (other than Irish currency) including an interest in property (as, for example, a lease) is an asset for Capital Gains Tax purposes.
Rate of Tax
The standard rate is 33% in respect of disposals made from midnight on 5th December 2012. The rate of tax for disposal made between the 7th of December 2011 and the 4th of December 2012 is 30%. The rate of tax for disposal made between 8 April 2009 and 6 December 2011 is 25%. For disposals between 15 October 2008 and 7 April 2009 the rate of tax was 22%. [For disposals made on or before 14 October 2008 the rate of tax was 20%.] The first €1,270 of an individual’s annual chargeable gains, net of allowable losses, are exempt.
All forms of property are assets for Capital Gains Tax purposes whether situated in or outside the State. Examples of assets are:
- Currency, other than Irish currency
- 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.
The following list is not exhaustive but all assets listed are chargeable to Capital Gains Tax:
- All forms of Land and property, wherever situate, including sites, be they developed or green field and with or without planning permission, houses, apartments, and commercial property.
- Shares in either Irish resident or non-resident companies.
- Governmental Stocks & Securities, other than Irish.
- Certain capital sums derived from assets.
- All forms of incorporeal property including options and the goodwill of a business.
- Trade assets.
Calculating Capital Gains Tax
Capital Gains Tax Payments and Returns
For 2009 and subsequent years the tax year is divided into a revised set of two periods for CGT payment purposes, as follows:’initial period’ – 1 January to 30 November, both inclusive.’later period’ – 1 December – 31 December, both inclusive. The due dates for payment of CGT are now as follows:
- Disposals in the initial period: Tax due by 15 December in the same tax year.
- Disposals in the later period: Tax due by 31 January in the following tax year.
For years 2003 to 2008 inclusive the tax year was divided into two periods for CGT payment purposes:
- ‘initial period’ – 1 January to 30 September, both inclusive: due date for payment of CGT – 31 October in the same year
- ‘later period’ – 1 October to 31 December, both inclusive: due date for payment of CGT – 31 January in the following year