The Irish Capital Gains Tax (CGT) Explained

The capital gain (profit) made on the sale of any asset is subject to the Irish Capital Gains Tax (CGT). It is important to be informed about the recent rates and allowances associated with CGT as they can sometimes change.

Irish Capital Gains Tax (CGT)

Capital Gains Tax  (CGT) Rates

  • The standard rate of CGT is 33% on disposals of assets, including property, shares, and other assets.
  • There is a 40% rate applicable to disposals of certain foreign life insurance policies and units in offshore funds. To get exact tax amount check our VAT Calculation Ireland tool.

Exemptions and Reliefs from CGT

  1. Annual Exemption: Individuals have an annual exemption of €1,270 (as of 2023), below which CGT is not chargeable.
  2. Retirement Relief: This relief might be available to individuals who dispose of their business up to certain thresholds, potentially reducing or eliminating the CGT payable.
  3. Entrepreneur Relief: Entrepreneurs selling qualifying assets may avail of a reduced CGT rate of 10% on the first €1 million of gains.
  4. Principal Private Residence Relief: Generally, if you sell your home, and it has been your main residence while you owned it, you may be exempt from CGT.
  5. Transfer of a Business to a Family Member: In certain situations, there might be reliefs available for transfer of business assets to family members.

Reporting and Payment for CGT

  1. Individuals are required to report disposals of assets and pay any CGT due to the Revenue Commissioners.
  2. CGT is payable by December 15 for disposals made between January 1 and November 30, and by October 31 for disposals made between December 1 and December 31.

More :

Tax-Advantaged Savings and Investment Accounts

Taxation of Rental Income

How Much Can You Earn Before Paying Tax in Ireland

Tax Deductions and Credits for Small Business

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