Capital Gains Tax Return
If you have disposed of an asset in Ireland, you may be required to file a Capital Gains Tax (CGT) return.
All gains made from the sale, gift or exchange of an asset must be declared to the Revenue Commissioners, regardless of the amount gained or whether the income is taxable.
We help individuals across Ireland to correctly register, pay and file their CGT returns on time.
What is CGT?
Capital Gains Tax (CGT) is paid on gains made by disposing of an asset. Individuals who are liable to pay CGT must do so via the Revenue Commissioners self-assessment system, regardless of whether their main source of income is PAYE or not.
To fully understand whether or how this applies to you, it’s important to understand what is considered an asset and what is considered a disposal.
Asset: An asset is considered to be an item of value (tangible or intangible) that can be converted into cash. Examples of assets that are eligible for CGT include land, company shares, insurance policies, foreign currency or patents.
Disposal: In the context of CGT, disposal of an asset refers not only to straightforward sales of assets, but to any transfer of ownership. Examples of disposal methods include the exchange, sale, gift or receipt of an asset.
CGT is levied only on the gain made from the asset disposal, meaning the difference between the sale proceeds and the purchase cost.
CGT Exemptions And Reliefs
All individuals are eligible for a personal exemption of the first €1,270 of CGT each year.
In addition, there are a number of CGT reliefs that can help to reduce the amount of tax you will pay. Depending on your personal circumstances, the method through which you sold or obtained an asset, and the type of asset itself, you may be eligible for one of these reliefs.
Some gains from the disposal of assets are exempt from CGT; however, you must still declare this income to the Revenue Commissioners. CGT exempt gains may come from:
- Betting
- Lottery winnings
- Sweepstakes
- Bonuses under the National Instalments Savings Scheme
- Government stocks
- Life assurance policies
- Animals
- Moveable property (under €2,540)
- Private motor cars
When To File And Pay CGT
If you are liable to pay CGT, you must first register for CGT using the online Revenue Commissioners system before you can file and pay.
The CGT payment deadline varies depending on when the disposal was made. CGT on disposals between 1 January and 30 November must be paid by 15 December of the same year; tax on disposals made between 1 December and 31 December must be paid by 31 January of the following year. Payment of CGT can be made using the Revenue Online Service.
The CGT return deadline is 31 October of the year following disposal. This means that if sold shares in November 2023, you must declare it on your CGT return by 31 October 2024.
Tax Return Plus helps individuals across Ireland file their Capital Gains Tax returns each year. If you are unsure of how much CGT you are liable to pay or whether you are eligible for a CGT relief, consult one of our tax specialists to make sure you’re not over or underpaying your CGT.
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