Capital Tax Rates

Capital Tax Rates
The standard rate in respect of disposals is determined based on the date on which the disposal was made as follows:

  • Disposals made from 6 December 2012 – 33%
  • Disposals made from 7 December 2011 to 5 December 2012 – 30%
  • Disposals made from 8 April 2009 to 6 December 2011 – 25%
  • Disposals made from 15 October 2008 to 7 April 2009 – 22%
  • Disposals made made on or before 14 October 2008 – 20%
  • The first 1,270 Euro of an individual’s annual chargeable gains, net of allowable losses, is exempt.

Exceptionally, a rate of 40% applies on disposals of certain foreign life assurance policies and units in offshore funds.

What is Capital Gains Tax?
CGT is a tax on a capital gain arising on the disposal of assets owned by you. At its simplest, deducting the price you paid for an asset when you acquired it from the sale proceeds when you dispose of it gives you the chargeable capital gain. In calculating the amount of tax payable, deductions are allowable for incidental costs of acquisition, such as solicitor’s fees, stamp duty etc. and incidental costs of disposal such as, solicitors/auctioneers fees etc. In addition, where an asset was acquired before 2003, inflation relief may be available, effectively adjusting the cost in line with a published inflation factor.
Are any Gains exempt from CGT?
Gains on the disposal of some assets are specifically exempted from CGT. These include: Read more
Property Incentive
The incentive relief from CGT (in respect of the first 7 years of ownership) for properties purchased between 7 December 2011 and 31 December 2014 is not being extended beyond 31 December 2014.
Windfall Tax
Windfall tax provisions introduced in 2009 which apply an 80% rate of tax to gains from disposals of land, where those gains are attributable to a relevant planning decision by a planning authority, are being abolished in the case of disposals made on or after 1 January 2015. This will mean that chargeable gains arising from disposals of land made on or after 1 January 2015 subject to these planning decisions will be subject to capital gains tax at the standard rate of 33% in common with other disposals of land while individuals or companies engaged in the trade of dealing in or developing land will be subject to income tax or corporation tax on their income or profits, as appropriate, at the normal rates attributable to those activities.
Retirement Relief
CGT retirement relief is being amended so that, subject to other conditions, land that has been leased for up to 25 years in total (increased from 15) ending with disposal will qualify for the relief.Amendments are also being made to provide (in the case of land disposals outside the family) that land currently let under conacre arrangements which end with disposal on or before 31 December 2016 or which (before 31 December 2016) is instead leased out for minimum periods of 5 years to a maximum of 25 years ending with disposal will, subject to other conditions, also qualify for CGT retirement relief.
CGT farm restructuring relief
The capital gains tax relief for farm restructuring (e.g. sale, purchase or exchange of land) is to be amended so that the deadline for completion of the first restructuring transaction is extended to 31 December 2016. Full details will be included in the forthcoming Finance Bill.
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