Do you want to avoid paying Capital Gains Tax in Ireland legally? Plan smartly to make the most of the exemptions and reliefs. This tax is charged on profits made when you sell, gift, or exchange an asset. Don’t worry. Only the gain is taxed, not the full value.

It applies to a wide range of assets like property, personal belongings, shares, and even businesses. The standard rate is 33% in Ireland. You just need to file your return and pay the correct amount.

This article is your simple guide to understanding Capital Gains Tax in Ireland and cutting down what you owe.

What Is Capital Gains Tax?

When you dispose of any asset, you will have to pay a capital gains tax on the profit. Calculate the chargeable gain minus the disposal price from the purchase price and allowable expenses. 

This amount will be charged on all assets when disposed of. An asset is anything that has a monetary value. It is said to be disposed of when you sell, gift exchange, or even receive compensation or insurance for it. 

If you are a non-resident, you are still liable to pay the capital gains tax on any land, buildings, or minerals you own, exploration/exploitation rights; and unquoted shares in Ireland.

Assets Liable for CGT 

Below, we have listed some common assets on which gains tax Ireland is applicable:

• Development land or land sold for greater than its market valuation 
• Homes, apartments, commercial buildings 
• Irish or foreign company shares
• Non-physical assets like goodwill, patents, copyrights
• Business/trade assets
• Foreign currency 
• Foreign life insurance/offshore funds
• Antiques, paintings, jewellery
• Capital payments 
• Joint Ownership
• Compensation and insurance (only on your share of gain)
• Damage and destruction compensation
• Rights forfeiture compensation
• Insurance for asset loss or damage
• Payment for asset use or exploitation

Note: 

• No CGT is applied to money used for replacing or repairing an asset. 
• On Irish shares: only when selling employee shares or investments

Exemptions from CGT

You are not required to pay any gains tax on the following:

• Winnings

Betting, lottery wins, prize bonds, and sweepstakes are exempt from CGT.

• Government-related investment earnings

The exemption is also applicable to National Instalment Savings Scheme bonuses, government stocks, and certain life assurance policies.

• Moveable Items

Any moveable items (e.g., furniture) with a gain of less than €2,540 are also CGT-free. There is no need to worry about CTG for animals and private motor cars as well.

• Death Transfers 

If an asset is transferred on death, no capital gains tax applies. However, if you dispose of an inherited asset, you must pay the tax. 

• Other Transfers 

No CGT applies to transfers between spouses and civil partners. The same applies to divorced/separated partners under court order. 

However, you must pay the CGT if the asset is a trading stock or the partner is a non-resident. The CGT must be paid if there is no court order for divorced or former partners.

How to calculate CGT

If you do not know how to avoid capital gains tax on property, use the tips below:

• Filing a Return

You must file a CGT return every time you dispose of an asset, even if no tax is due.

• Calculate the Chargeable Gain

The total gain for the year must be calculated by subtracting the sale price from the purchase and allowable expenses.

After adding all gains, subtract any losses. 

• Calculate Allowable Expenses 

Any cost that increased in value or fee paid for 

Buying and selling is an allowable expense.

• Use Market Value Instead of sale price

Gifted and inherited assets, assets sold for less than market value, or those bought before 6 April 1974 must use the market value.

• CGT Rates

Learn more about taxes in the Ireland Budget 2025.

When to file CGT?

After disposal of an asset, you must file it by 31 October of the year. Refer to the table below for payment deadlines.

The disposal date refers to the date mentioned on the contract. Late payment would be charged with interest, and late returns can result in penalties.

How to Pay CGT?

To pay the tax online, you can use a ROS account—just log in. Go to Via ‘Other Services’, followed by ‘Manage Tax Registrations’, and select ‘CGT’ alteration. You can also use myAccount. Log in to access ‘Manage My Record’, followed by  ‘Tax Registrations, and register under ‘CGT’.

There are different CGT return forms. Choose the most suitable one. Your return form must have descriptive details of your disposed asset. 

This includes the amount received, reliefs claimed, unused prior-year losses, chargeable gain/loss, taxable gain, and CGT rate. Do not forget to mention any CGT paid in advance.

Conclusion 

In conclusion, it is important to file a Capital Gains Tax in Ireland in time, even if no tax is due. To save money, you must be aware of assets that are liable and exempted from taxation. 

Using a capital gains tax calculator, Ireland is best for correctly estimating. Try exploring options to minimise your tax. You can also get help from a tax advisor. Just make sure you file the tax return before the deadline. 

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