1. Capital Gains Tax Capital Gains Tax
Charged on the profit arising on disposal of capital assets
Rate of CGT in 2015 is 33%

2. Capital Gains Tax The charge to CGT Section 28 TCA 97
CGT “…shall be charged in accordance with the Capital Gains Tax Acts in respect of capital gains, that is, in respect of chargeable gains computed in accordance with those Acts and accruing to a person on the disposal of assets.”

3. Capital Gains Tax The charge to CGT
Therefore, in order for a charge to CGT to arise there must be:
A disposal
Of an asset
By a chargeable person
Where a chargeable gain is produced it will be subject to CGT

4. Capital Gains Tax A disposal
Generally, a disposal occurs when a person gives up the rights which he/she has in relation to certain assets.
Usually involves transfer of ownership but not always and can take many forms
A sale (of the asset) is the most common
A part-sale
Gifting an asset

5. Capital Gains Tax A disposal Exchanging one asset for another
Granting an option or long lease over a property
Receiving a capital sum for the surrender of rights to an asset
An asset is also disposed if it is scrapped or destroyed

6. Capital Gains Tax A disposal A compulsory purchase order
The purchase by a company of its own shares
The transfer of an asset to a trust or corporate body
The forgiveness of a debt

7. Capital Gains Tax Timing of a disposal Unconditional contract
Capital sum derived from an asset
Gift
Compensation payment

8. Capital Gains Tax Timing of a disposal Compulsory purchase order
The date on which compensation is received
At a time immediately prior to death if the compensation has not been received at the date of death

9. Capital Gains Tax An asset
Assets include land, buildings, motor vehicles, paintings, furniture, motor vehicles.
Distinction between chargeable and non-chargeable assets
Chargeable assets include all forms of property except those that are specifically excluded by legislation

10. Capital Gains Tax Chargeable assets
Specifically included by legislation:
Options and debts
Any currency other than euro
Intangible property; goodwill, patents, copyrights

11. Capital Gains Tax Non-chargeable assets
Specifically excluded from CGT by legislation:
Government securities
Life assurance policies and contracts for deferred annuities
Gains on disposal of assets by a charity
Any gain arising on approved superannuation funds

12. Capital Gains Tax Non-chargeable assets
Specifically excluded from CGT by legislation:
Any gain on the disposal of growing timber
Any gain arising on the disposal of a debt by an original creator
Prize bond winnings, lottery winnings
Compensation or damages for a wrong or injury suffered

13. Capital Gains Tax Non-chargeable assets
Specifically excluded from CGT by legislation:
Wasting chattels
Non-wasting chattel sold for €2,540 or less

14. Capital Gains Tax Assets transferred on a death
Not treated as a disposal for CGT purposes
Transferred to the beneficiary at market value (MV) on the date of death
No CGT will arise on difference between original cost and the value at the date of death
If the beneficiary subsequently disposes of the asset the base cost is the MV on the date of death

15. Capital Gains Tax Chargeable Person
Disposal must be by a chargeable person in order for it to be chargeable to CGT
Based on residence and domicile status of individual

16. Capital Gains Tax Chargeable Person
Resident and/or Ordinarily Resident and Irish Domiciled
Taxable on worldwide gains
Resident and/or Ordinarily Resident but not Domiciled
Remittance basis
Gains arising on assets situated in Ireland
Other gains to the extent that the gains are remitted to Ireland

17. Capital Gains Tax Chargeable Person
Neither Resident no Ordinarily Resident and not Domiciled
Taxable on specified assets only
Land and buildings in Ireland
Minerals and mineral rights in relation to resources situated in Ireland, including exploration or exploitation rights in designated areas within the Irish continental shelf

18. Capital Gains Tax Chargeable Person
Neither Resident no Ordinarily Resident and not Domiciled
Any assets situated in Ireland and used for a trade carried on in Ireland
Shares deriving more than 50% of their value from (a) land and buildings, or (b) minerals and mineral rights