Capital Gains Tax (CGT) on the sale, gift or exchange of an asset

CGT exemptions

Personal Exemption

The first €1,270 of your gain (after deducting losses) is exempt from CGT.

Principal Private Residence Exemption (full or partial)

When you transfer or sell a property you will be exempt from CGT if that property was your main residence while you owned it. This exemption also applies to land, up to one acre around a house.

If you let your home at any point that you owned it, you can claim a partial exemption. The Rent-a-Room scheme does not affect your claim for full exemption.

You may sell your home and the land up to one acre around it for its development value. In this case, the exemption will only apply to the value of the house or land without its development value. You may have to pay CGT on the value of the house or land over that amount.

Which gains do you not need to pay CGT on?

You do not need to pay CGT on gains from:

  • betting
  • lottery wins
  • prize bonds
  • sweepstakes
  • bonuses under the National Instalments Savings Scheme
  • government stocks
  • certain life assurance policies
  • moveable property (such as furniture), where the gain does not exceed €2,540
  • animals
  • private motor cars.

Transfer of a site from a parent to a child

If you transfer land to your child to build a house which is your child’s only or main residence, you will not have to pay CGT on the transfer. For this purpose, a transfer includes a joint transfer by you, and your spouse or civil partner, to your child.

Your child includes a child whom you fostered. This must have been for at least five years before the child reached the age of 18. You must support the claim that you fostered the child by evidence from more than one person.

To qualify for relief, the land must:

  • be one acre or less
  • have a value of €500,000 or less.

Your child may pay CGT on the disposal of the land from you to them in two specific situations. These are where they dispose of the land either:

  • without having built a house on that land
  • or
  • if they have built a house on the land, having not occupied that house as their only or main residence (this must be for a period of at least three years).

This rule does not apply if the child disposes of the land to their spouse or civil partner.

Next: How do you pay and file CGT?