Capital Gains Tax Planning

Plan your disposals and keep CGT to a minimum

Selling an asset is often the moment a large tax bill appears, but with planning, capital gains tax in Ireland can frequently be reduced, sometimes substantially. We help clients across Mullingar, Longford, Trim and Athlone plan the disposal of property, shares and businesses to make full use of the reliefs and exemptions available, and to file correctly when the time comes.

The key is to plan before you sell. Once a disposal has happened, the room to manage the tax has largely gone. Spoken to in good time, we can often change the outcome significantly.

How capital gains tax works

CGT is charged at 33% on the chargeable gain you make when you dispose of an asset, broadly the proceeds less the cost and allowable expenses. Everyone has an annual exemption that shelters a slice of gains each year, and several reliefs can reduce or remove the charge on particular assets. The headline rate is well established, but the annual exemption and the detailed rules are reviewed by Revenue from time to time, so we always confirm the current figures before you act. Our guide to capital gains tax in Ireland explains the essentials in more detail.

Where the planning happens

Most CGT savings come from a handful of decisions, made early:

• Property, your own home is generally exempt under principal private residence relief. For investment property, we make sure the cost base captures every allowable item, and we time disposals to use the annual exemption efficiently. For development and certain transactions, VAT on property may also come into play.
• Shares, gains on quoted and unquoted shares are chargeable, but losses can be set against gains, and timing across tax years can help. We also plan around share transfers within families and companies.
• Business and farm assets, retirement relief can dramatically reduce the CGT on a qualifying disposal, whether you sell or hand on. This is where CGT planning and succession and estate planning come together.
• Losses and timing, realising losses, spreading disposals across years, and choosing the right moment to sell can all reduce the charge.

Joined-up with your wider tax position

CGT rarely sits on its own. A disposal that triggers CGT for you may trigger capital acquisitions tax for the person receiving the asset, particularly on a gift or inheritance, and the two need to be planned together. A tax review is often the best starting point, identifying your exposure across all your assets before you move, while ongoing tax planning keeps the strategy current.

Get the timing right

Because so much of CGT planning depends on acting before you sell, the most valuable thing you can do is talk to us early. Book a free consultation at any of our four offices, and we will help you plan the disposal of your property, shares or business to keep capital gains tax as low as the law allows.