Capital Gains Tax
If you decide to sell or gift anything of value you could be liable to Capital Gains Tax. You are obliged to inform the Revenue Commissioners of your disposal and failure to do so could give rise to penalties. There are various reliefs and exemptions available and our expert advice should be sought before selling or gifting any asset.
CGT is chargeable on gains arising on the disposal of assets, other than that part of a gain which arose in the period prior to 6 April 1974. Any form of property (other than Irish currency) including an interest in property (as, for example, a lease) is an asset for CGT purposes.
Rate of Tax
The standard rate is 25% in respect of disposals made from midnight on 7th April 2009. Previous rates were 22% on disposals from 14 October 2008 and 20% in respect of disposals made prior to that date. The first €1,270 of an individual’s annual chargeable gains, net of allowable losses, are exempt.
Capital Acquisitions Tax
Capital Acquisitions Tax (CAT) comprises Gift Tax, Inheritance Tax and Discretionary Trust Tax.
Gift tax is charged on taxable gifts taken (other than on a death) on or after 28 February, 1974
Inheritance Tax is charged on taxable inheritances taken (on a death) on or after 1 April, 1975.
We can file your CAT return and assist you in availing of any reliefs or exemptions in advance i.e. prior to gifting assets or at the time of writing a will.