Miscellaneous CGT issues Negligible value claim In general, only realised losses are allowed for CGT purposes. However, a taxpayer can make a negligible value claim to Revenue. If accepted by Revenue, they will allow the loss relief as if the asset had been sold and reacquired at market value, with the loss realised.

Miscellaneous CGT issues Negligible value claim This loss can be used against other gains. The loss arises on the date on which the claim is made, not on the date the asset lost its value.

Miscellaneous CGT issues Site to a child relief A CGT exemption applies on the transfer by a parent to a child of land, provided certain conditions are met. The open market value of the land being transferred must not exceed €500,000 at the date of transfer. The area of the site must not exceed 1 acre.

Miscellaneous CGT issues Site to a child relief The transfer must be for the purpose of enabling the child to construct a dwelling house on the land to be occupied by the child as his/her main residence. The €500,000 limit applies where both parents make a simultaneous disposal of a site to their child.

Miscellaneous CGT issues Site to a child relief Claw-back, if the land is disposed before a dwelling is built. Claw-back, if the dwelling is built but not occupied as a main residence by the child. The gain arising due to claw-back accrues to the child not the parent.

Miscellaneous CGT issues CGT withholding tax provisions In certain circumstances there is an obligation on the purchaser of an asset to deduct withholding tax of 15% from the proceeds before paying the vendor. This withholding tax is paid over to Revenue.

Miscellaneous CGT issues CGT withholding tax provisions Withholding tax applies: When the proceeds exceed €500,000. The disposal is of one of the following assets: Land and buildings in the State Minerals in the State or any rights, interests or other assets in relation to mining or minerals or the search for minerals

Miscellaneous CGT issues CGT withholding tax provisions The disposal is of one of the following assets: Exploration or exploitation rights in a designated area of the Irish Continental Shelf. Unquoted shares deriving their value or the greater part of their value directly from the above assets. Unquoted shares received in exchange for the above shares. Goodwill of a trade carried on in the State.

Miscellaneous CGT issues CGT withholding tax provisions Withholding tax is treated as a payment on account by the vendor in respect of the CGT payable on the disposal. Vendor still obliged to pay CGT and file a CGT return

Miscellaneous CGT issues CGT withholding tax provisions Possible to avoid the withholding tax by obtaining a CGT clearance certificate from Revenue. CGT clearance cert will be granted if: The vendor is resident in the state, or The vendor is no liable to CGT on the transaction, or The vendor has paid all the CGT due.

Miscellaneous CGT issues Administration of CGT for individuals Self-assessed tax For period 1 January to 30 November, CGT due by 15 December. For 1 to 31 December, CGT due by 31 January. CGT return due by 31 October in following year.

Miscellaneous CGT issues Administration of CGT for individuals Late filing of returns subject to surcharge: 5% to maximum of €12,695 if filed within 2 months of filing date 10% to maximum of €63,485 if filed after 2 months of filing date

Miscellaneous CGT issues Companies An Irish resident company is liable to CGT only on gains arising on the disposal of development land The gains on disposals of other assets by a company are subject to Corporation Tax not CGT.

Miscellaneous CGT issues Companies Capital losses offset against gains in current period and carried forward indefinitely. Development land and non-development land losses treated differently Capital losses on non-development land may be used against chargeable gains (other than gains on development land) in the current accounting period and any balance used carried forward indefinitely.

Miscellaneous CGT issues Companies Capital losses on development land can be set off against capital gains on any other kind of asset. Capital losses on non-development land cannot be used again gains on development land disposals.