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Capital Tax Rates

The standard rate of CGT is 30%. (This rate was introduced on 7 Dec 2011)

Previous rates:

25% for gifts and inheritances taken between 08/04/09 – 06/12/11 inclusive
22% for gifts and inheritances taken between 14/10/08 – 07/04/09 inclusive
20% for gifts and inheritances taken prior to 14/10/08

Exceptionally, a rate of 40% applies on disposals of certain foreign life assurance policies and units in offshore funds.

What is Capital Gains Tax?

CGT is a tax on a capital gain arising on the disposal of assets owned by you. At its simplest, deducting the price you paid for an asset when you acquired it from the sale proceeds when you dispose of it gives you the chargeable capital gain.

In calculating the amount of tax payable, deductions are allowable for incidental costs of acquisition, such as solicitor’s fees, stamp duty etc. and incidental costs of disposal such as, solicitors/auctioneers fees etc. In addition, where an asset was acquired before 2003, inflation relief may be available, effectively adjusting the cost in line with a published inflation factor.

Are any Gains exempt from CGT?

Gains on the disposal of some assets are specifically exempted from CGT. These include:

Gains on the disposal of property owned by you (house, apartment, etc.) which was occupied by you or by a dependent relative as a sole or main residence. Restrictions may apply where the property was not fully occupied as a main residence throughout the period of ownership or where the sale price reflects development value.

Transfer of residential site from parent to your child, provided the site is to construct your child’s principal private residence, and its market value does not exceed €500,000

Gains from betting, Lotteries, sweepstakes, bonuses payable under the National Instalments Savings Scheme and Prize Bond winnings

Gains on Government Loans and Debenture issued by certain Semi-state bodies

Gains on disposal of wasting chattels (e.g., animals, private motor cars, etc.)

Gains on Life Assurance policies (unless purchased from another person or taken out with certain foreign insurers on or after 20 May 1993)

Gains made by individuals on tangible moveable property where the consideration does not exceed £2,540

Payment of CGT

a) If the disposal is made in the period 1 January to 30 November the tax is due by 15 December in that tax year

b) If the disposal is made in the period 1 December to 31 December the tax is due on 31 January in the following year

Personal Exemption

The first €1,270 of taxable gains by an individual in a tax year are exempt. In the case of a married couple this exemption is available to each spouse but is not transferable.

Business & Farm Transfers

Full retirement relief from CGT for intra-family transfers will be maintained for individuals aged 55 to 66. An upper limit of €3m on retirement relief for business and farming assets disposed of within the family is introduced where the individual transferring the assets is aged over 66 years. This will incentivise earlier transfer of farms.

(The current unlimited amount applies for a transitional period of two years for individuals currently aged 66 or who reach that age before 31 December 2013.)

The current upper limit of €750,000 for assets transferred outside the family for individuals aged between 55 and 66 years will be maintained. The upper limit for retirement relief for business and farming assets transferred outside the family is reduced from €750,000 to €500,000 for individuals aged over 66 years.

(The current upper limit of €750,000 applies for a transitional period of two years for individuals currently aged 66 or who reach that age before 31 December 2013.)