1. CGT annual exemption – €1,270
Who gets it?
- Individuals only (including non‑resident individuals).
- Not available to companies, trustees or other bodies.
Amount and how it works
- First €1,270 of an individual’s net chargeable gains in a tax year is exempt from CGT.
- If net gains ≤ €1,270 → no CGT.
- If net gains > €1,270 → only the excess over €1,270 is taxable.
Net chargeable gains
- Gains after:
- all current year allowable losses, and
- all brought‑forward losses.
- You cannot:
- ring‑fence €1,270 of gross gains as exempt and
- still carry forward losses.
Losses must be used first; the exemption is applied after.
Rates interaction
- If you have gains taxed at different rates, the €1,270 is set first against the highest‑rate gains, then the next highest, etc.
Spouses / civil partners
- Each has their own €1,270.
- Unused amounts cannot be transferred between them.
When it’s not available
- No annual exemption in any year where the individual gets:
- Retirement relief – s.598 (disposal of business/farm on retirement), or
- Retirement relief – s.599 (disposal of business/farm within family).
2. Interaction with other CGT reliefs / exemptions (“personal” CGT reliefs)
Common interactions:
- Chattel exemption (small chattels)
- Tangible movable property sold for ≤ €2,540 – gain is exempt.
- These gains are excluded before you measure the €1,270 annual exemption.
- Principal private residence relief (PPR)
- Gain on disposal of your main home may be wholly or partly exempt.
- Only the remaining chargeable gain, if any, counts towards the €1,270 limit.
- Transfers between spouses / civil partners
- Generally no gain / no loss – so no use of the €1,270 on that transfer.
- CGT only arises on a later disposal to a third party; the annual exemption applies in that later year.
- Assets passing on death
- No CGT on death, so annual exemption does not come into play on death itself.
3. Income tax personal credits (for context – not CGT)
For 2025, key income tax personal credits (not CGT) are:
- Personal credit:
- €2,000 (single)
- €4,000 (married/civil partners jointly assessed)
- Employee tax credit: €2,000
- Earned income tax credit: €2,000 (for self‑employed, certain proprietary directors)
- Single person child carer credit: €1,900
- Blind person credit: €1,950
- Incapacitated child credit: €3,800 per child
These reduce income tax; they do not reduce CGT. CGT is a separate tax – the €1,270 annual exemption is its own relief.
If you tell me your situation (single/married, employment/self‑employed, children, etc.), I can show how your CGT annual exemption and your income tax personal credits would apply together in a simple example.
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.