Capital Gains Tax
Capital Gains Tax (CGT) 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 CGT purposes.
The standard rate is 25% in respect of disposals made from midnight on 7th April 2009. Previous rates were 22% on disposals from 14 October 2008 and 20% in respect of disposals made prior to that date.
Capital Gains Tax (CGT) is a tax on gains arising on the disposal of assets. A disposal means a transfer of ownership in an asset whether by means of sale, gift, exchange or otherwise and includes a part disposal of an asset.
Who is liable to pay Capital Gains Tax?
If you are resident or ordinarily resident, and domiciled in the State you are liable on worldwide gains.
If you are neither resident nor ordinarily resident you are liable on gains on the disposal of specified assets.
If you are resident or ordinarily resident in the State but not domiciled you are liable on gains from the disposal of Irish situated assets in full and on gains from the disposal of foreign assets to the extent that the gains are remitted into the State.
Main Exemptions and Reliefs
The first €1,270 of net gains, i.e., - gains after allowable prior year and current year capital losses, by an individual in a tax year is exempt. In the case of married couples this exemption is available to each spouse but is not transferable.
A gain on the disposal of a principal private residence, including grounds of up to one acre is exempt, provided the house had been occupied by the individual as his/her only or main residence during the individual's period of ownership.
This exemption is restricted where the house was part let or part used for business or the individual did not reside there for long periods (with the exception of the Rent-a-Room Scheme introduced in Finance Act 2001) or where the house or gardens are sold for development purposes.
Please go to www.revenue.ie for further details