Key Irish CGT reliefs and exemptions to consider:
1. Annual exemption (individuals)
- First €1,270 of net chargeable gains per tax year is tax‑free.
- Available separately to each spouse/civil partner.
2. Principal Private Residence (PPR) Relief – your home
Potential full/partial exemption if the property:
- Was your only or main residence, or
- Was provided rent‑free to a widowed parent or incapacitated relative as their only residence.
Land up to 1 acre (excluding the site of the house) can qualify.
Restrictions apply for non‑resident periods, letting, development value, etc.
3. Transfers between spouses/civil partners
- Generally exempt from CGT on transfers between spouses/civil partners.
- Also applies on certain transfers on separation/divorce when under court order or formal Separation Agreement.
4. Site transferred from parent to child
- Possible CGT exemption where a site is transferred to a child to build the child’s home.
- Conditions include:
- Area less than 1 acre, and
- Value not more than €500,000 at date of transfer.
5. Business or farm assets – over 55 (Retirement Relief)
- Relief on disposal of qualifying business/farming assets or shares in certain family companies from age 55+, subject to conditions.
- Can reduce or eliminate CGT on qualifying disposals (especially on transfers within the family or on retirement).
6. Indexation (Inflation) Relief
- For assets acquired before 1 January 2003, certain pre‑2003 costs can be uplifted for inflation, reducing the gain.
7. Foreign CGT relief
- Where foreign property is sold and foreign CGT is paid, there may be:
- A credit against Irish CGT if a double tax agreement covers CGT, or
- A deduction for foreign CGT paid if no credit is available.
If you outline your specific transaction (type of asset, dates, use, who it’s transferred to), the relevant reliefs can be pinpointed and applied to your figures.
Speak to Professional Tax Advisers
To discover more about Capital Gains Tax in Ireland, please call us on +353 (0)1 272 3858 or complete a Free Online Enquiry.