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Generic Tax Name Capital tax - Capital gains tax
Tax name in the national language Capital gains tax
Tax name in English Capital gains tax
Member State IE-Ireland
Tax in force since 1975/04/06
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

The Taxes Consolidation Act, 1997, as amended by later Finance Acts.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

Republic of Ireland.

 
Taxpayers
  • Persons, including companies, resident or ordinarily resident in Ireland on chargeable assets wherever situated.
  • Persons, neither resident nor ordinarily resident, in respect of chargeable gains accruing from the disposal of the following assets situated in Ireland:
    • Land in the State.
    • Minerals in the State or rights, interests or other assets related to minerals or to the searching for such minerals.
    • Assets of a business carried on in the State.
    • Rights in the Irish part of the continental shelf area.
  • Persons wholly or partially exempted include local authorities and certain other public bodies, charities, superannuation funds, registered trade unions, friendly societies, etc.
 
Tax object and basis of assessment

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.

 
Deductions, Allowances, Credits, Exemptions

Exemptions:

The main exemptions are:

  • an individual's principal private residence, with restricted relief where the gain is inflated due to development potential of the property;
  • wasting chattels, that is, tangible movable property, excluding currency, with a predictable life of less than 50 years;
  • certain life assurance policies;
  • Irish Government securities;
  • securities of local authorities and certain State-sponsored bodies;
  • betting, lotteries and sweepstakes.

 

Reliefs:

  • The first €1,270 of an individual's net gains in any year of assessment are not chargeable. An individual's capital gains tax exemption limit for each year of assessment or the amount of that exemption not used by the individual can not be set off against capital gains of the individuals spouse.
  • A chattel disposed of by an individual for a consideration not exceeding €2,540 is not chargeable and where the consideration exceeds €2,540 the liability is not to exceed half the difference between the consideration and €2,540.

With respect to an individual aged 55 years or more who disposes of the whole or part of his farm or business:

  • if the disposal is to his child, it is not chargeable;
  • if the disposal is outside the family and the consideration does not exceed €750k it is also not chargeable;
  • if the disposal is outside the family and the consideration exceeds €750k, the liability shall not exceed half the difference between the consideration and €750k.
 
Rate(s) Structure

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%. 

 
Tax due date

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

 
Tax collector

Revenue Commissioners

Self-assessment - payment and return filing

 

From 2009:

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 features

Special rules apply in the following cases:

  • disposals to the State, charities, and certain other bodies;
  • disposal of property subject to a lease and the grant of a lease at a premium;
  • bonus and rights issues and other reorganizations of share capital;
  • company amalgamations and conversion of securities;
  • transfer of a business to a company;
  • capital distribution by a company to a shareholder;
  • certain works of art, which have been loaned for at least six years to a recognised gallery.

Losses:

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.

 
Economic function







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Environmental taxes



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Tax revenue
ESA95 code d51md + d51ob (d51c1a + d51c2a)

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 413.00 EUR 0.24
2011 416.00 EUR 0.24
2010 345.10 EUR 0.21
2009 545.00 EUR 0.32
2008 1,424.00 EUR 0.76
2007 3,097.40 EUR 1.57
2006 3,099.90 EUR 1.68
2005 1,982.00 EUR 1.17
2004 1,527.80 EUR 0.98
2003 1,435.70 EUR 0.98
2002 619.00 EUR 0.46
2001 875.60 EUR 0.72
2000 773.50 EUR 0.71

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