Module
Capital Taxes Fundamentals
Capital Taxes Fundamentals
Educational material, not professional, tax or legal advice. Figures reflect Irish law as understood when written — check Revenue.ie or a qualified adviser before acting. Not affiliated with or endorsed by any professional body.
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- 01CGT taxes gains, not gross proceeds
- 02The gain computation follows a fixed bridge
- 03The disposal date controls the assessment year
- 04Territorial scope starts with person and asset
- 05Use the current source hierarchy
- 06Ownership can be legal, beneficial or joint
- 07Current CGT rates must match the gain
- 08Capital and income tax use different bases
- 09Residence uses the day-count tests
- 10Ordinary residence follows a three-year pattern
- 11Domicile is a legal status, not a day count
- 12Domicile disputes require evidence and appeal rights
- 13Foreign gains may use a remittance basis
- 14Non-residents remain within specified Irish assets
- 15An asset can be tangible or intangible
- 16Asset location uses category-specific rules
- 17Wasting assets have a predictable life
- 18Capital sums can arise without a sale
- 19A gift is a disposal at market value
- 20An exchange contains reciprocal disposals
- 21Insurance receipts may be capital sums
- 22Reinvestment can postpone an insurance gain
- 23Security does not usually transfer beneficial ownership
- 24Nominees act for the beneficial owner
- 25Trustees are separate chargeable persons
- 26An unconditional contract fixes disposal time
- 27A conditional contract waits for its condition
- 28Options create separate rights and events
- 29A part disposal preserves remaining cost
- 30Deferred consideration still needs valuation
- 31Split capital and revenue consideration
- 32Balancing charges and CGT must not double count
- 33Market value replaces non-arm's-length proceeds
- 34Foreign-currency proceeds use transaction-date euro
- 35Non-cash consideration is still value
- 36The acquisition cost is consideration given
- 37Incidental costs need the statutory connection
- 38Enhancement must add enduring value
- 39Defending title can be allowable
- 40Acquisition market value can be imposed
- 41Derived assets inherit allocated history
- 42Wasting-asset cost reduces over time
- 43Foreign-currency cost keeps its historic euro rate
- 44Part-disposal cost uses value, not guesswork
- 45Deferred and contingent proceeds are different
- 46Debt releases can be consideration
- 47Valuation evidence must match the tax date
- 48A complete asset history prevents duplicated cost
- 49An allowable loss mirrors a chargeable gain
- 50Current-year losses are used before exemption
- 51Brought-forward losses are carried until usable
- 52Connected-person losses are ring-fenced
- 53Non-wasting chattel losses use deemed proceeds
- 54Wasting chattels need a capital-allowance test
- 55Negligible value can create a deemed disposal
- 56Development-land losses have directional limits
- 57Indexation preserves historic money value
- 58Indexation cannot create or enlarge a loss
- 59Pre-6 April 1974 assets use a market-value gateway
- 60The annual exemption belongs to the individual
- 61Exempt assets are tested before computation
- 62Chattel gains use exemption and marginal relief
- 63PPR relief starts with ownership and occupation
- 64The final twelve months can qualify
- 65Certain absences are deemed occupation
- 66Exclusive business use restricts PPR
- 67Rent-a-room does not automatically restrict PPR
- 68Development value can escape PPR
- 69A site transfer to a child has strict limits
- 70Site relief can be clawed back
- 712011-2014 property relief is still fact-sensitive
- 72Personal insolvency transfers have special rules
- 73Revised entrepreneur relief applies a 10% rate
- 74Qualifying business excludes investment activity
- 75Company-share relief needs ownership and work tests
- 76The 2026 lifetime limit is EUR 1.5 million
- 77Entrepreneur-relief exclusions need review
- 78Retirement relief does not require retirement
- 79Child transfers use the post-2025 age bands
- 80Excess child-transfer CGT can be deferred
- 81Outside-family retirement limits are lifetime values
- 82Farm restructuring relief coordinates two transactions
- 83Reliefs must be coordinated, not stacked blindly
- 84Spouses remain separate CGT persons
- 85Each spouse keeps a personal exemption
- 86Inter-spouse transfers are generally no gain no loss
- 87Separation changes the automatic spouse rule
- 88Divorce and dissolution relief follows the order
- 89Relief depends on qualifying legal status
- 90Death itself normally creates no CGT disposal
- 91Pre-death gains remain in the final return
- 92Year-of-death losses have special treatment
- 93Inherited assets begin with death-date market value
- 94Personal representatives can realise estate gains
- 95Appropriation and sale are different estate events
- 96Succession needs a CGT and CAT bridge
- 97Share disposals start with class and pool
- 98FIFO normally identifies older Irish shares
- 99The four-week rule matches rapid reacquisitions
- 100Four-week loss relief can be restricted
- 101Bonus and rights issues reshape cost
- 102Share-for-share exchanges can defer gains
- 103Cash in a share exchange can trigger a gain
- 104A pro-forma share history is a control
- 105Share gains need a final annual summary
- 106First principles decide unusual share receipts
- 107Granting a lease can be a part disposal
- 108Short-lease premiums have an income element
- 109Sale of an existing lease differs from grant
- 110Lease cost wastes with the term
- 111Lease surrender and extension need legal analysis
- 112Development land is defined by value
- 113Development gains restrict indexation
- 114Development-loss ordering is asymmetric
- 115PPR does not shelter development uplift automatically
- 116CGT withholding applies to specified assets
- 117The withholding rate is 15% of gross consideration
- 118The purchaser must account for withheld tax
- 119CG50A clearance is now an online workflow
- 120Clearance thresholds depend on the asset
- 121No-cash transfers can still invoke withholding
- 122Self-assessment makes the taxpayer responsible
- 123CGT has two payment windows
- 124The CGT return is due the following 31 October
- 125The return needs asset-level entries
- 126CGT and income-tax self-assessment overlap but differ
- 127Case study: compute the asset gain first
- 128Case study: apply losses, relief and rate
- 129Case study: finish with deadlines and evidence
- 130CAT charges gifts and inheritances
- 131A CAT computation has a fixed sequence
- 132The current CAT rate is 33%
- 133CGT, CAT and income tax ask different questions
- 134A gift requires less than full consideration
- 135An inheritance follows death
- 136Disponer and beneficiary roles must be fixed
- 137Free use of property can be a gift
- 138CAT territorial scope uses connecting factors
- 139CAT residence follows tax status, not nationality
- 140Foreign domicile can delay CAT residence scope
- 141Domicile evidence matters for CAT too
- 142Property situs is an independent CAT gateway
- 143Treaties and credits follow domestic scope
- 144Taxable value begins with market value
- 145Market value means the open-market price
- 146Incumbrance-free value removes qualifying burdens
- 147Consideration must be real and enforceable
- 148Costs and expenses need statutory authority
- 149Limited interests require actuarial valuation
- 150Free use creates an annual taxable value
- 151CAT value differs from CGT gain and income
- 152Aggregation is a lifetime group ledger
- 153Group A follows the closest listed relationships
- 154Groups B and C must be distinguished
- 155Current thresholds are 400000, 40000 and 20000
- 156CAT applies 33% to the taxable excess
- 157CGT credit coordinates the same event
- 158Same-day benefits use a combined order
- 159Freedom from tax is itself a benefit
- 160Date taken and valuation date do different jobs
- 161Spouse and civil-partner benefits are exempt
- 162Separation and divorce use specific exemptions
- 163A surviving spouse takes exempt
- 164A couple computation still identifies each benefit
- 165The small-gift exemption is EUR 3000 per disponer
- 166Support and education exemptions are conditional
- 167Dwelling-house exemption is narrow
- 168Charity and public-benefit exemptions need status
- 169Business relief reduces qualifying value by 90%
- 170Agricultural relief uses the farmer test
- 171Filing begins at the 80% threshold
- 172Relief claims can require IT38 below 80%
- 173CAT pay and file follows the valuation date
- 174Reliefs carry future clawbacks
- 175Relationship reliefs need a family-tree file
- 176IT38 is a digital evidence summary
- 177The exemption checklist ends with other taxes
- 178A lifetime gift creates several tax files
- 179A death file separates estate and beneficiary
- 180One valuation can serve several taxes only if suitable
- 181Connected transactions need anti-avoidance review
- 182Capital-tax records need a long memory
- 183Ethics protects the tax conclusion
- 184Technology assists but does not decide
- 185The 2027 rule set needs a dated re-check
- 186Congratulations on completing the module