The standard rate of CGT is
30%. (This rate was introduced on 7 Dec 2011)
25% for gifts and inheritances taken between 08/04/09 – 06/12/11 inclusive
22% for gifts and inheritances taken between 14/10/08 – 07/04/09 inclusive
20% for gifts and inheritances taken prior to 14/10/08
Exceptionally, a rate of 40%
applies on disposals of certain foreign life assurance
policies and units in offshore funds.
What is Capital Gains
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.
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.
Are any Gains exempt
Gains on the disposal of some
assets are specifically exempted from CGT. These
Gains on the disposal of property owned by
apartment, etc.) which was occupied by you or
by a dependent relative as a sole or main residence.
Restrictions may apply where the property was
not fully occupied as a main residence throughout
the period of ownership or where the sale price
reflects development value.
Transfer of residential site from parent to your child, provided the site is to construct your child’s principal private residence, and its market value does not exceed €500,000
Gains from betting, Lotteries, sweepstakes,
under the National Instalments Savings Scheme
and Prize Bond
Gains on Government Loans and Debenture issued
Gains on disposal of wasting chattels (e.g.,
motor cars, etc.)
Gains on Life Assurance policies (unless purchased
another person or taken out with certain foreign
insurers on or
after 20 May 1993)
Gains made by individuals on tangible moveable
where the consideration does not exceed €2,540
a) If the disposal is made
in the period 1 January to 30 November the tax
is due by 15 December in that tax year
b) If the disposal is made in the period 1 December
to 31 December the tax is due on 31 January in
the following year
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.
Business & Farm Transfers
Full retirement relief from CGT for intra-family transfers will be maintained for individuals aged 55 to 66. An upper limit of €3m on retirement relief for business and farming assets disposed of within the family is introduced where the individual transferring the assets is aged over 66 years. This will incentivise earlier transfer of farms.
(The current unlimited amount applies for a transitional period of two years for individuals currently aged 66 or who reach that age before 31 December 2013.)
The current upper limit of €750,000 for assets transferred outside the family for individuals aged between 55 and 66 years will be maintained. The upper limit for retirement relief for business and farming assets transferred outside the family is reduced from €750,000 to €500,000 for individuals aged over 66 years.
(The current upper limit of €750,000 applies for a transitional period of two years for individuals currently aged 66 or who reach that age before 31 December 2013.)
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