Taxes in Europe Database v2
The Taxes Consolidation Act, 1997, as amended by later Finance Acts.
Republic of Ireland.
The object of the tax is gains on the disposal of chargeable assets. Chargeable assets, subject to certain exemptions, comprise all forms of property including incorporeal property such as debts, options, copyrights, goodwill and interests in or rights over any property real or incorporeal. “Disposal” includes part disposal and also includes a transfer by sale, exchange or gift. “Disposal” generally does not include the passing of assets on death. An individual resident or ordinarily resident in Ireland but not domiciled in Ireland is liable on gains on chargeable assets situated outside Ireland only to the extent that the gains are remitted to Ireland.
Up to 1 January 2009, the "remittance basis" did not apply to gains on assets in the United Kingdom.
The basis of assessment is chargeable gains less allowable losses in a year of assessment or in an accounting period in the case of a company.
In general capital gains or losses are computed on the basis of the consideration received on the disposal or part disposal of the asset (or the market value if the disposal is between connected parties or there is no consideration or the transaction is not at arm's length) less the base cost of the asset (or a portion thereof if a part-disposal) together with expenses incidental to the disposal.
The base cost - that is, the cost of the asset - certain enhancement expenditure, and any incidental acquisition expenses, are adjusted upwards by reference to the increase in the consumer price index between the year of assessment in which the asset was acquired and 31 December 2002. This adjustment will not operate to convert a monetary gain into an allowable loss or to inflate a monetary loss.
Where an asset was already owned on 6 April 1974 (the date of commencement of capital gains tax) the base cost is deemed to be the market value on that date. In the case of disposals of development land the inflation adjustment is subject to certain restrictions.
Any part of the consideration that is already chargeable to income tax is excluded and, similarly, the allowable expenditure is reduced by any amount which is or would be allowable as a deduction for income tax.
Where a disposal of an asset which was acquired on death is made by the successor the base cost of the asset is deemed to be its market value as at the date of death.
The main exemptions are:
With respect to an individual aged 55 years or more who disposes of the whole or part of his farm or business:
Up to 14 October 2008 - 20%
From 14 October 2008 to 7 April 2009 - 22%
From 8 April 2009 to 6 December 2011 - 25%
From 7 December 2011 - 30%
From 6 December 2012 - 33%
Special rates apply to certain disposals related to venture capital (12.5% for companies and 15% for individuals).
Disposals of offshore funds are liable at 40%.
From 1 January 2009:
For disposals made in the period 1 January to 30 November, tax due by 15 December
For disposals made in the period 1 December to 31 December, tax due by 31 January
Self-assessment - payment and return filing
Disposals between 1 January and 30 November - payment due by 15 December
Disposals between 1 December and 31 December - payment due by 31 January
Return due by 31 October in the year following the disposal
Special rules apply in the following cases:
Normally allowable if a gain on the same transaction would have been chargeable. Losses are set primarily against gains of the same year. The excess, if any, is carried forward and set off against any gains of a future year. Losses cannot be carried back to an earlier year except those accruing to an individual in the year of his/her death which may be carried back and set off against the gains of the three preceding years.