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 Government 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.

An individual’s exposure to Irish capital gains tax depends on their tax residence and domicile status. Note Irish specified assets (i.e. assets located in Ireland) are always subject to Irish CGT.

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.