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Capital Gains Tax in Ireland

Capital Gains Tax (CGT) in Ireland is a tax charged on the capital gain (profit) made on the disposal of any asset.  It is payable by the person making the disposal.

The gain/profit (the difference between the price you paid for the asset and the price you sold it for) is considered taxable income.

What is an asset?

An asset is not just something you own outright, it may be an intangible asset.  For example, goodwill in a company or an option over assets are considered assets.  It can also be something you have an interest in, for example, a leasehold interest in land.

How are assets disposed of?

Disposing of an asset doesn’t just refer to the sale of an asset for money.  It includes any transfer of ownership by way of exchange, gift or settlement on trustees.  Transfers of assets between spouses are exempt from Capital Gains Tax.

Transfers of assets between spouses who are separated are exempt from Capital Gains Tax if they are made under a Separation Agreement or a court order.

The transfer of a site from parent to child for the purposes of constructing the child’s principal private residence, where the site’s market value does not exceed a certain limit, is also exempt from Capital Gains Tax.

There is no Capital Gains Tax on assets passed on death.

Capital Gains Tax can be complex and for this reason you should seek advice from the Revenue website- Capital Gains Tax

Cross border issues

If you live on one side of the border and make a taxable gain on the other side it is important to seek expert advice regarding where you should pay capital gains tax.  InterTradeIreland provides a list of professional service providers that have expertise in a range of cross  border issues.  Please visit InterTradeIreland – List of providers.

See also:

Page last checked: June 2016

This webpage is for general information purposes only and while we endeavour to keep it up-to-date, errors may occur.  It is very important that you check with the relevant body to ensure the information is current and is applicable to your situation: – North /  South

If you would like to suggest amendments or highlight new information that could be useful to others please don’t hesitate to get in touch.