| Standard Capital Gains Tax Rates
|
Ordinary Rate (1999/2000 to 2007)
|
20%
|
Disposal of certain shares by individuals (1999/2000 to 2007)
|
20%
|
| Development Land |
| |
Category of Development Land* |
From 1/12/1999 |
Before 1/12/1999 |
| 1. |
Non-Residential Development Land |
20% |
40% |
| 2. |
Residential land sold to connected persons |
20% |
40% |
| 3. |
individuals whose profits from the sale of land are liable to income tax** |
20%** |
40%** |
| |
|
From 1/1/2000 |
Before 1/1/2000 |
| 4. |
Specific companies liable to sale of residential land at 25% |
20% |
25% |
Note One*
Any other categories of development land have a rate of 20% CGT attaching.
Note Two**
The sale of land by these individuals will continue to be taxed within the income tax system. Such sales will be "ring-fenced" within the income tax system and subject to tax of 20%.
|
| Transfers from Parents to Children |
Stamp duty and CGT will no longer apply on the transfer of a site from a parent to a child on or after 6 December 2000, provided it is for the construction of the child’s principal private residence and the market value of the site does not exceed €254,000/£200,000.
It will also be a condition that a parent can only transfer one site to each child for the purposes of this exemption.
If the site is then sold by the child without having been built and inhabited for three years, the relief will be taken back (unless the child has died).
|
| Indexation Relief |
The basic computation in CGT is:-
[proceeds] - [cost of asset for tax purposes] = [gain liable to CGT]
Before budget 2003, the cost of the asset was increased upwards by the rate of inflation from the date you bought the asset - in other words, the cost was indexed upwards.
This was restricted in the budget for 2003.
Indexation will now only be applied up to 31 December 2002 and not beyond.
|
| Rollover Relief |
The basics behind this relief is that a CGT gain in certain circumstances can be avoided on disposal where the proceeds from the gain are re-invested.
Following on from the Budget for 2003, this rollover relief will not apply:
- for the replacement of business and other assets
- in the case of disposals to an authority possessing compulsory purchase powers
|
| Temporary Residence Abroad |
In the budget for 2003, it was announced certain tax rules which currently allow individuals to avoid a capital gains tax charge by selling assets during a period of temporary residence abroad, will be changed.
|
| Subsidiaries |
In the budget for 2004, The Minister stated he would introduce an exemption from CGT for Irish resident companies on the disposal of a substantial shareholding in their trading subsidiaries.
This is to encourage Multinationals to locate their head offices in Ireland.
|
Capital Gains Tax