CGT

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Capital Gains Tax Deadline – 15th December

Have you sold, gifted or transferred any assets between 1st January – 30th November 2019?

If Capital Gains Tax (CGT) is due on these, this must be paid by 15th December 2019

Payment deadlines for CGT are as follows:

  • Disposals between 1st January & 30th November due by 15th December same year
  • Disposals between 1st December & 31st December due by 31st January the following year

How do I know if CGT is due?

Firstly, you need to calculate if you made a chargeable gain on your asset. CGT is calculated on the chargeable gain only and not the full amount you receive and is calculated as follows:

Chargeable gain = disposal price less purchase price & costs

There are various expenses, exemptions and relief available from CGT, which you should seek advice on in preparing your CGT return. Each individual is entitled to a personal exemption of €1,270 for each tax year, any gain over this threshold is subject to Capital Gains Tax. Some allowable expenses can also be deducted from the sale of an asset such as; enhancement expenses or professional fees i.e. solicitor.

What if I made a loss?

If you have made a loss on the disposal of an asset, you can carry this forward to be offset against any future gains. You should still file this loss with Revenue Commissioners to place it on record.

When and how do I file CGT?

Your CGT payment is due on the above deadline dates. However, the figures involved in reaching your CGT liability is required to be included in your Income Tax Return by the 31st October the following year.


Have a question on CGT or need assistance? Should you have any queries on this issue, please contact us on 01 5397999 or info@itasaccounting.ie

Please note this article is for information purposes and does not constitute advice. Details correct at time of publishing.

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Capital Gains Tax on rental properties

Interesting article issued in The Irish Times today regarding selling a rental property in negative equity.

A reader asks –

is there any capital gains tax due if mortgage was paid off and sold at a loss?

Let’s clarify, there is only Capital Gains Tax (CGT) due if there is a gain on the sale of property, which in this case would be zero. The gain is simply the sale price, less the cost price including other allowable expenses and reliefs. Any outstanding mortgage is irrelevant.

There will be no capital gains tax to pay and you will have a loss that can be offset this year against any gains you may make on the sale of other assets.

This loss can also be carried forward and offset against any future gains.

Regarding VAT, this area depends on a number of factors and each case needs to be reviewed in order to evaluate.

Read more on this article here

Have a query regarding this? Contact us today 01 539 7999
Why not read some of our previous blogs here

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Retirement Relief

 

Retirement Relief may apply to business owners who either sell or gift their business where a gain has arisen on its disposal. This relief allows an exemption from Capital Gains Tax (CGT) at 33%.

Contrary to its title “Retirement Relief”, you do not actually have to be retiring to avail of this relief. Read more

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