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Capital Taxes

Budget measures legislated for include:

  • Retention of the standard rate of CGT of 33%.
  • A revised Capital Gains Tax Relief for entrepreneurs, introduced effective from 1 January 2016. This will apply a reduced Capital Gains Tax rate of 20% to a disposal in whole or in part of a business (including shares in a private company) up to an overall limit of €1,000,000 in chargeable gains. See further details on our Self Employed / Entrepreneur page.
  • Retention of the CAT rate of 33%.
  • Increase in the current Group A tax free threshold, which applies primarily to gifts and inheritance from parents to their children, from €225,000 to €280,000. This applies to gifts or inheritances on or after 14 October 2015.  The thresholds are now:
GROUP
A - Parent to Child€280,000
B - Between Related Persons€30,150
C - Between Non-Related Persons€15,075

New measures announced in Finance Bill in relation to CGT include: 

  • A specific measure to address an anomaly in computing a capital loss on disposal of a s23 Residential property – this change is retrospective and applies to disposals on or after 1 January 2012 so taxpayers who have disposed of s23 properties in that period should review their position to determine if a capital loss is now available. 
  • Removal of the requirement to obtain a CG50 Tax Clearance certificate in respect of the disposal of residential property where the consideration is less than €1m – the €500,000 existing limit remains for all other disposals. 
  • A provision to allow Standard Life shareholders whose postal application to elect to take a return of value as a capital payment was delayed, to treat that return of value as a payment liable to CGT not income tax. 
  • Amendment of certain anti-avoidance measures in relation to offshore capital gains to ensure compliance with EU law. 
  • Changes to CGT relief on transfer of business - this anti-avoidance measure is in relation to a perceived abuse of the interaction of transfer of business relief and CGT group relief, as highlighted by Revenue in eBrief 80/15.

Return to: Finance Bill 2015 Analysis

Team Members

Jackie Masterson

Taxation Partner

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Ronan McGivern

Taxation Partner

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Mairead O'Grady

Taxation Partner

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Fiona Murphy

Taxation Partner

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