Capital Gains Tax – Sale of Property & Shares

General Introduction

We provide information on the following:

  • General information on assets and disposals
  • Disposal of your Principal Private Residence
  • Property Investors – Capital Gains Tax
  • Foreign Property
  • Disposals of Sites to Children
  • Disposals to Spouse
  • Inflation Relief
  • When is Capital Gains Tax Payable?
  • The Disposal of a Property By Way of a Gift
  • Part Sale of a Property
  • Sale of an Option or Contract over a Property
  • Personal Exemptions
  • Disposal of a Business Upon Retirement
  • Capital Gains Tax – Sale of Shares
  • Sale of Shares – Tax Saving Tips
  • Special Investment Products

The tax definition of Assets is very wide ranging and covers many different items. If you make a gain on the disposal of an asset you may have to pay Capital Gains Tax on the gain. The current rate of Capital Gains Tax is 33%.

This article explains how Capital Gains Tax can arise on the disposal of properties and shares and the rules applying in the calculation of the gain or loss on a sale of an asset. Our Capital Gains Tax calculators will do the calculations for you.

There are a number of special exemptions available from Capital Gains Tax which we also explain. One of the most important is the exemption from CGT on the sale of your principal private residence. We explain in detail how this relief works.

Before you can be liable for Capital Gains Tax you must Sell or Dispose of an Asset. The meaning of these three words is very important for understanding how you can be liable for Capital Gains Tax and are briefly explained as follows:

Takes its ordinary meaning and generally means selling an asset for an agreed sum of money or in exchange for something else.

This has a wider meaning and includes giving assets away for no consideration e.g. gifts.

This covers a multitude of items and in respect of property includes options or contracts for property, which could be sold on without you ever acquiring the property involved.

You have to make a gain on the sale or deemed sale of an asset before you have to pay tax. There are special rules for determining whether or not a gain is made. We will explain these rules as regards the following situations:
The sale or gift of a property.
The sale of shares.
These are the most common areas where capital gains tax arises for most people.

If you make a loss on the sale of any asset that loss can be offset against any gain you have made in the same or future tax years on the sale/disposal of other assets.

The rules for calculating how a loss arose are much the same as for calculating if a gain arose with one major difference. When a loss arises you cannot create or increase your real loss by the relief for inflation, which applied up to December 31st 2002.

For married couples dealt with under joint assessment the losses of one spouse can be used to offset a gain of the other spouse.

Pension Contributions
Property Investors - Tax on Rental Income