Capital Gains Tax - What You Need To Know

What is Capital Gains tax?

Capital gains is a tax you may have to pay if you sell or ‘dispose’ of an asset such as a property, land or shares and you make a gain or a profit.

How much CGT should I pay?

The CGT rate is 33% on disposals made after 05 December 2012.

When do I have to pay it?

When you pay Capital Gains tax will depend on when you disposed of your asset. There are two payment deadlines. CGT on gains made between 01 January and 30 November 2020 should be paid by the 15 December 2020 while CGT on gains in December is due to be paid by the 31 January 2021. If you miss these deadlines you will be liable to interest and late payment penalties.

Where should you pay CGT?

If you normally reside in Ireland you are liable to pay CGT on worldwide gains. So if for example you have a gain on a property in Spain you must file a return in Ireland detailing the gain however you will receive a credit for any CGT already paid in Spain.

How can I reduce my CGT liability?

There are a number of reliefs that may be available to either reduce or eliminate the CGT on a gain. The most common of these reliefs are:

Making a return

In addition to making a payment you must also ensure to file a CGT return with the Revenue Commissioners. For disposals of assets in 2019 a tax return must be filed with details of the disposal by 31 October 2020. TaxAssist Accountants can assist you with the preparation of your return, contact us today.

 

Last updated: 10th November 2020