Introduction:

Capital Gains Tax (CGT) is a tax charged on the capital gain made on the disposal or the gifting of any asset.  Assets could be property, shares, etc.  CGT is paid by the person making the disposal. The gain (the difference between the price you paid for the asset and the price you sold it for) is the taxable gain, which is subject to CGT at a rate of 33%.

Disposal of assets by way of gifts to connected parties:

Where an asset is gifted to a connected party such as a child, tax legislation states that market value rules must apply where the asset is gifted to a connected party.  Therefore, while no monetary consideration has actually passed, CGT nevertheless applies. 

Exemptions to Capital Gains Tax

The following are some exemptions to Capital Gains Tax;

  • Where assets are passed on death
  • Transfers of assets to spouses and civil partners is exempt from CGT.
  • Gains made by individuals on tangible moveable property worth €2,540 or less at disposal date.
  • Where the gain on the gift is €1,270 or less (Note:  The €1,270 credit is only allowed on a gift by the disponer.  It is not allowed on the transfer of assets on the death of the disponer). 
  • Gains on sale of Principal Private Residence
  • Gains on bet winnings

Payment dates for Capital Gains Tax

Payment dates for Capital Gains Tax is divided into a revised set of two periods:

  • An ‘initial period’ from 1 January to 30 November where payment date is on or before 15th December in that year.
  • A ‘later period’ from 1 December to 31 December where payment due date is on or before 31st January in the following year.

The disponer must provide details of the disposal of the asset on either a form 11 (self-assessment) or a form 12 (PAYE only individual) on or before 31st October in the year following the disposal.

WalshGibbons has extensive experience in dealing with client Capital Gains Tax issues.  For any queries on the above, please contact a member of our team on 0818 222 923