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.
Rate of Tax
The standard rate in respect of disposals is determined based on the date on which the disposal was made as follows:
- Disposals made:
- from 6 December 2012 - 33%
- from 7 December 2011 to 5 December 2012 - 30%
- from 8 April 2009 to 6 December 2011 - 25%
- from 15 October 2008 to 7 April 2009 - 22%
- made on or before 14 October 2008 - 20%
The first €1,270 of an individual’s annual chargeable gains, net of allowable losses, is exempt.
Full Self Assessment
The Finance Act 2012 introduced full self-assessment for chargeable persons, via part 41A of the Taxes Consolidation Act 1997.
For Capital Gains Tax, the new Part 41A applies for the year 2013 et seq.
This new part requires the customer, or their agent, to self-assess when making a tax return, and allows for a penalty where no self-assessment is made.
Further information is available under: Tax Briefing Issue No. 03 of 2014