Capital Gains Tax is payable on the sale of numerous assets including:
- Properties (excluding Principal Private Residences)
- Shares
- Land
- Incorporeal property (goodwill, options)
- Disposals of leases (in certain cases)
The Current Rate of Capital Gains Tax is 33%
Late payment of CGT can result in interest of up to 10% per annum on the outstanding liability. Failure to submit a return of the liability (even where payment is made) can result in an additional liability of 10% of the tax liability.
The due dates for payment of the liabilities for 2022 are:
- Disposals between 1 January and 30 November by the 15th December 2022
- Disposals between 1 December and 31 December by 31 January 2023
A gift of shares, property etc whether no payment passes can still result in a liability to Capital Gains Tax. This includes transfers between relatives.
There are numerous reliefs available to minimise the payment of CGT
- The first €1,270 of net gains by an individual in a tax year is exempt. In the case of married couples this exemption is available to each spouse but is not transferable.
- Losses carried forward from the disposal of other assets
- Negligible Value Claims
- Retirement Relief (aged 55 years and over and asset being disposed of has been a business asset for >10 years i.e. farm land etc)
- A gain on the disposal of a principal private residence may also be exempt where the house had been used as the sole residence of a Dependent Relative & more….
Know Your Tax can advise on the tax implications on the sale or transfer of any assets together with a review of any reliefs available to reduce tax liabilities arising. Calculations will also be provided and a quotation can be sought upfront by contacting us.