Guide to
Capital Gains Tax
Contents
Chapter
Page
Introduction
3
1.
Scope of Capital Gains Tax
4
2.
Capital Gains Tax - Self-Assessment
8
3.
Calculation of Gain or Loss
10
4.
Development Land
12
5.
Main Exemptions and Reliefs
14
6.
Special Categories
19
7.
Companies
21
8.
Taxation of shares - FIFO rules / Bonus and Rights Issues
23
9.
Returns, Appeals and Payment - Self-Assessment
26
10. Obligation on persons acquiring certain assets to deduct tax
27
11. Examples
29
Appendix 1 -
Table of Inflation/Indexation Multipliers
37
Appendix 2 -
Capital Gains Tax Computation Sheets
38
for Self-Assessment
Appendix 3 -
Guidance Notes on Completion of
Computaion Sheets
41
Appendix 4 -
List of Revenue Offices and
Other Information Sources
44
Index
46
2
Guide to Capital Gains Tax
Introduction
1.
This Guide sets out the scheme of taxation applicable to the disposal of assets arising on or after
1 January 2002. Any requests for further information, including information about the taxation of
disposals in earlier years, can be made at any Revenue office or you can view information on Revenue’s
website www.revenue.ie.
A list of the main Revenue offices, with addresses, telephone numbers and e-mail contact addresses and
other information sources is set out in Appendix 4 of this Guide.
2.
Capital Gains arising on the disposal of a wide range of assets are chargeable to Capital Gains Tax. The
standard rate of tax is 20%. However, higher rates apply to disposals of certain foreign life assurance
policies and foreign investment products. Some assets are excluded from Capital Gains Tax and some
gains are relieved from Capital Gains Tax.
3.
Capital Gains accruing to persons other than companies are chargeable to Capital Gains Tax. Capital
Gains accruing to companies are chargeable to Corporation Tax (with some exceptions).
4.
The taxation of capital gains is incorporated into the Taxes Consolidation Act 1997 as amended by
subsequent Finance Acts. Previously it was governed by the Capital Gains Tax Act 1975 and the
Corporation Tax Act 1976