Transferring an asset (Capital Gains Tax – CGT)
How do you pay and file CGT?
When do you have to pay CGT?
For disposals made between 1 January and 30 November (the initial period) you must pay CGT by 15 December of the same year.
For disposals made between 1 December and 31 December (the later period) you must pay CGT by 31 January of the next year.
For disposals made under a written contract, the time of disposal is usually the date of the contract.
What paperwork do you include with your payment?
You must accompany each payment with the appropriate payslip:
How do you file your CGT return?
You should file by 31 October in the year after the date of disposal. You must do this even if no tax is due because of reliefs or losses.
There are a number of different CGT return forms:
- Form CG1 – if you do not usually submit annual tax returns
- Form 12 – if you are a PAYE worker
- Form 11 – if you are self employed, or have income that is not taxed under PAYE
- Form 1 – for a trust or an estate
- Form CT1 – for a company.
Use Revenue Online Service (ROS) to file your Form 11, Form 1 or Form CT1. You can post the Form CG1 or Form 12 to your Revenue Office.
How do you pay CGT?
Use ROS or myAccount to make a CGT payment online.
How do capital losses work?
You may have made a loss when disposing of an asset. You can use this loss against a capital gain made by you in the year that you made the loss. You can also use it against a capital gain made by you in later years.
You may have losses that you cannot use because they are less than gains made by you in that year. You can use the balance against your spouse or civil partner's gains. This will not apply if you and your spouse or civil partner make an application that this should not apply. You must make this application on or before 1 April in the following year.
Next: How to calculate CGT