Walsh Business Consulting

CAPITAL GAINS TAX

Optimise Your Capital Gains Tax Strategy with Walsh Business Consulting

Capital Gains Tax (CGT) is a tax levied on the profit realised from the sale of assets that you own. At its core, calculating CGT involves deducting the purchase price of an asset from the proceeds received when you dispose of it, resulting in the chargeable capital gain. For CGT purposes, all forms of property, whether located within or outside the State, are considered assets.

This encompasses a wide range of holdings, including:

Land
Shares
Goodwill
Currency (except Irish currency)

Exemptions and Special Provisions

There are several exemptions and special provisions under CGT, including:

Gains from the disposal of Government Stocks and Securities.
Gains from the disposal of tangible movable property, provided the consideration does not exceed €2,540.
Gains from the disposal of wasting assets, such as private motorcars or livestock, with a predictable life of less than 50 years.
Gains from the disposal of your principal private residence.
Exemption for Prize Bond, Lottery, and Gaming winnings.

Calculating Tax Liability

When determining the tax payable, you can claim deductions for incidental costs of acquisition (e.g., solicitor's fees, stamp duty) and incidental costs of disposal (e.g., solicitors' or auctioneers' fees). Additionally, if you acquired an asset before 2003, you may be eligible for inflation relief, which adjusts the cost in line with a published inflation factor.

Tax Exemptions

For individuals, the first €1,270 of taxable gains in a tax year is exempt from CGT. If you're part of a married couple, this exemption is available to each spouse but cannot be transferred.

Residence and Domicile Considerations

Your exposure to Irish capital gains tax depends on your tax residence and domicile status. It's important to note that Irish specified assets (assets located in Ireland) are always subject to Irish CGT.