Capital Gains Tax Capital Gains Tax Charged on the profit arising on disposal of capital assets Rate of CGT in 2015 is 33%

Capital Gains Tax The charge to CGT Section 28 TCA 97 CGT “…shall be charged in accordance with the Capital Gains Tax Acts in respect of capital gains, that is, in respect of chargeable gains computed in accordance with those Acts and accruing to a person on the disposal of assets.”

Capital Gains Tax The charge to CGT Therefore, in order for a charge to CGT to arise there must be: A disposal Of an asset By a chargeable person Where a chargeable gain is produced it will be subject to CGT

Capital Gains Tax A disposal Generally, a disposal occurs when a person gives up the rights which he/she has in relation to certain assets. Usually involves transfer of ownership but not always and can take many forms A sale (of the asset) is the most common A part-sale Gifting an asset

Capital Gains Tax A disposal Exchanging one asset for another Granting an option or long lease over a property Receiving a capital sum for the surrender of rights to an asset An asset is also disposed if it is scrapped or destroyed

Capital Gains Tax A disposal A compulsory purchase order The purchase by a company of its own shares The transfer of an asset to a trust or corporate body The forgiveness of a debt

Capital Gains Tax Timing of a disposal Unconditional contract Capital sum derived from an asset Gift Compensation payment

Capital Gains Tax Timing of a disposal Compulsory purchase order The date on which compensation is received At a time immediately prior to death if the compensation has not been received at the date of death

Capital Gains Tax An asset Assets include land, buildings, motor vehicles, paintings, furniture, motor vehicles. Distinction between chargeable and non-chargeable assets Chargeable assets include all forms of property except those that are specifically excluded by legislation

Capital Gains Tax Chargeable assets Specifically included by legislation: Options and debts Any currency other than euro Intangible property; goodwill, patents, copyrights

Capital Gains Tax Non-chargeable assets Specifically excluded from CGT by legislation: Government securities Life assurance policies and contracts for deferred annuities Gains on disposal of assets by a charity Any gain arising on approved superannuation funds

Capital Gains Tax Non-chargeable assets Specifically excluded from CGT by legislation: Any gain on the disposal of growing timber Any gain arising on the disposal of a debt by an original creator Prize bond winnings, lottery winnings Compensation or damages for a wrong or injury suffered

Capital Gains Tax Non-chargeable assets Specifically excluded from CGT by legislation: Wasting chattels Non-wasting chattel sold for €2,540 or less

Capital Gains Tax Assets transferred on a death Not treated as a disposal for CGT purposes Transferred to the beneficiary at market value (MV) on the date of death No CGT will arise on difference between original cost and the value at the date of death If the beneficiary subsequently disposes of the asset the base cost is the MV on the date of death

Capital Gains Tax Chargeable Person Disposal must be by a chargeable person in order for it to be chargeable to CGT Based on residence and domicile status of individual

Capital Gains Tax Chargeable Person Resident and/or Ordinarily Resident and Irish Domiciled Taxable on worldwide gains Resident and/or Ordinarily Resident but not Domiciled Remittance basis Gains arising on assets situated in Ireland Other gains to the extent that the gains are remitted to Ireland

Capital Gains Tax Chargeable Person Neither Resident no Ordinarily Resident and not Domiciled Taxable on specified assets only Land and buildings in Ireland Minerals and mineral rights in relation to resources situated in Ireland, including exploration or exploitation rights in designated areas within the Irish continental shelf

Capital Gains Tax Chargeable Person Neither Resident no Ordinarily Resident and not Domiciled Any assets situated in Ireland and used for a trade carried on in Ireland Shares deriving more than 50% of their value from (a) land and buildings, or (b) minerals and mineral rights