Capital Gains Tax (CGT) is a tax on capital ‘gains’ in Northern Ireland. If when you sell or give away an asset it has increased in value, you may be taxable on the ‘gain’ (profit). This doesn’t apply when you sell personal belongings worth £6,000 or less or, in most cases, your main home.
Source: HM Revenue & Customs
- Capital Gains Tax is a tax on the gain or profit you make when you sell, give away or otherwise dispose of something. It applies to assets that you own, such as shares or property.
You don’t have to pay CGT on:
- your car
- your main home (in most cases)
- personal possessions worth up to £6,000 each, such as jewellery, paintings or antiques
- stocks and shares you hold in tax-free investment savings accounts, such as ISAs and PEPs
- UK Government or ‘gilt-edged’ securities, for example, National Savings Certificates, Premium Bonds and loan stock issued by the Treasury
- betting, lottery or pools winnings
- personal injury compensation
- foreign currency you bought for your own or your family’s personal use outside the UK
CGT is worked out for each tax year (which runs from 6 April one year to 5 April the following year). It is charged on the total of your taxable gains, after taking into account:
- certain costs and reliefs that can reduce or defer gains
- allowable losses you have made on assets to which normally CGT applies
- the annual exempt amount (the AEA)
CGT can be complex and varies according to your circumstances. You may wish to take professional advice from your accountant. This is especially important if your business holds assets that will increase in value, or you are thinking of selling your business and business assets, which might lead to a significant tax bill.
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.
- HMRC – Capital Gains Tax
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.