Capital Gains Tax (CGT)
Capital Gains Tax (CGT) is a tax on the profit made from selling assets such as property or shares. It’s essential to be aware of the deadlines for CGT payments to ensure compliance and avoid penalties. Some common assets that people sell, that are subject to CGT, include investment property and common stocks and shares.
CGT Payment Deadlines:
Sales from 1st January to 30th November: For assets sold during this period, CGT must be paid by 15th December of the same year. For example, if you sell an asset in October 2024, the CGT payment is due by 15th December 2024.
Sales in December: For assets sold between 1st and 31st December, the CGT payment is due by 31st January of the following year. Therefore, a sale in December 2024 requires CGT payment by 31st January 2025.
It is your responsibility to calculate what CGT is due, file the appropriate return and pay the liability on time. The CGT return is called a Form CG1.
It is also important to note, in respect of assets disposed of up to 30 November 2024, that while you pay the CGT in the year the assets are sold, you need to file the return by 31 October of the following year. So, if you sold an asset in 2024 you need to file a return, on or before 31 October 2025.
Once registered for CGT, payments can be made online through Revenue’s ROS or myAccount platforms.
As of now, the standard CGT rate in Ireland is 33%. However, various reliefs and exemptions may apply, potentially reducing your CGT liability. Engaging in tax planning can help identify opportunities for tax savings.
Need Assistance?
Our tax accountants will work closely with you to optimise Capital Gains tax returns through a variety of reliefs and exemptions, a number of which have been created relatively recently.
The Capital Gains tax is chargeable as a result of gains made from selling or transferring assets, most commonly in the form of the share capital of their business or other significant personal assets (like second homes for example).
However, tax planning is the key to minimising Capital Gains tax. It is well worth discussing your long term plans with our tax team, so you are able to structure your assets in a way which keeps Capital Gains tax to a minimum when the time comes to sell.
Contact us today for a free, no-obligation consultation.
