Michael O'Grady

For certain windfall gains the windfall gains tax rate is 80%. For Capital Gains made between 15 October 2008 and 7 April 2009 inclusive the standard rate of tax on Capital Gains is 22%. For Capital Gains made on or before 14 October 2008 the standard rate of tax is 20%.

However, different rates apply to disposals of certain foreign life assurance policies, foreign investment products and certain gains of venture capital fund managers. Some assets are excluded from Capital Gains Tax and some gains are relieved from Capital Gains Tax.

Where assets pass on death there is, in general, no charge to Capital Gains Tax. The person acquiring the assets is treated, in relation to a subsequent disposal of those assets, as if they had been acquired at their market value at the date of the death or, if the death took place before 6 April 1974 the market value at 6 April 1974.

Who is liable to pay Capital Gains Tax?

• If you are resident or ordinarily resident, and domiciled in the State you are liable on worldwide gains.
• If you are neither resident nor ordinarily resident you are liable on gains on the disposal of specified assets.
• If you are resident or ordinarily resident in the State but not domiciled you are liable on gains from the disposal of Irish situated assets in full and on gains from the disposal of foreign assets to the extent that the gains are remitted into the State.

Main Exemptions and Reliefs

• The first €1,270 of net gains, i.e., - gains after allowable prior year and current year capital losses, by an individual in a tax year is exempt. In the case of married couples this exemption is available to each spouse but is not transferable.
• A gain on the disposal of a principal private residence, including grounds of up to one acre is exempt, provided the house had been occupied by the individual as his/her only or main residence during the individual's period of ownership.

This exemption is restricted where the house was part let or part used for business or the individual did not reside there for long periods (with the exception of the Rent-a-Room Scheme introduced in Finance Act 2001) or where the house or gardens are sold for development purposes.

CGT Payments & Returns  

For 2009 and subsequent years the tax year is divided into a revised set of two periods for CGT payment purposes, as follows:

• 'initial period' - 1 January to 30 November, both inclusive.
• 'later period' - 1 December - 31 December, both inclusive.

The due dates for payment of CGT are now as follows:

• Disposals in the initial period: Tax due by 15 December in the same tax year.
• Disposals in the later period: Tax due by 31 January in the following tax year.

CGT Payslip A - Payments Due on 15th December 2010

For further information in relation to Capital Gains Tax, please do not hesitate to contact our office on 091 637585 or by email, info@michaelogrady.ie