Capital gains for companies

A company can make a capital gain from selling or transferring an asset. Any capital gain will be subject to tax at the rate of Capital Gains Tax (CGT).

A capital gain made by a company is usually included in the profits of the company for Corporation Tax (CT). The tax is assessed in the same accounting period that the gain is made and reported on an online CT1 using Revenue Online Service (ROS). 

Capital gains on development land

Capital gains from selling or transferring development land are not included in a company's profits. Instead, these gains are fully taxabe within CGT rules.

The company must report these gains in the Capital Gains (Development Land) section of the online CT1. This is subject to the CGT pay and file deadlines.

Capital gains on assets other than development land

Capital gains are subject to the rules and rate of CGT. However, the tax liability on chargeable gains from assets, other than development land, are included in the company’s CT payment. This means the chargeable gain will be calculated at the CT rate.

As the rates of CT and CGT are different, the capital gain needs to be adjusted so CGT liability calculates correctly. When the adjusted amount is calculated at the CT rate, the result is the same as when calculated at the CGT rate.

How to calculate the adjusted gain

To calculate the adjusted gain:

  • calculate the amount of CGT tax liability would be at the CGT rate (33%)
  • divide this amount by the CT rate (12.5%)

You must report the adjusted gain in the capital gains section of your online CT1.

  • Example

    In 2025, the CT rate was 12.5% and the CGT rate was 33%.

    In November 2016, a company, Atosom Ltd bought a building for €100,000. Atosom Ltd sold the building in October 2025 for €250,000. CT is chargeable on the capital gain.

    Atosom Ltd must calculate the chargeable gain on the disposal

    Calculation of chargeable gain
    DescriptionAmount

    Disposal proceeds

    €250,000

    Deduct allowable expenses:

    		  

    Cost of acquisition

    €100,000

    Chargeable gain

    €150,000

    Atosom Ltd then calculate the amount of CGT tax liability would be at the CGT rate (33%).

    Calculate CGT tax liability
    Description Amount

    Chargeable gain

     

    €150,000

    CGT (33% of 150,000)

    €150,000 x 0.33

    €49,500

    Atosom Ltd now can adjust the gain for the taxable amount they need to include in their CT1.

    CT capital gain adjustment
    DescriptionAmount

    Amount of CGT due

    €49,500

    Divided by CT rate (12.5%)

    0.125

    Adjusted gain

    €396,000

    The company adjust the gain up to €396,000.

    Calculation check
     RateAmountCalculation Liability
    CGT 33% €150,000 150,000 x 0.33 €49,500
    CT 12.5% €396,000 396,000 x 0.125 €49,500

Non-resident companies

A non-resident company must pay CGT on gains it makes from the disposals of ‘specified assets’. These include:

  • land and buildings located in Ireland
  • mineral rights or interests in Ireland
  • exploration or exploitation rights in a designated area of the Irish Continental Shelf
  • assets which are used or held for the purposes of a trade carried on in Ireland through a branch or agency
  • and
  • unquoted shares deriving the greater part of their value from:
    • land and buildings located in Ireland
    • mineral rights or interests in Ireland
    • or
    • exploration or exploitation rights in a designated area of the Irish Continental Shelf.

Gains on disposals of rental property located in Ireland are subject to CT unless considered development land.

Losses

A company can offset a loss it makes on the sale or transfer of:

  • development land against gains from the sale of all other assets
  • or
  • non-development land against gains on other non-development land assets.

Published: 08 January 2026 Print this page

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