About Capital Gains Tax
This tax applies to all chargeable gains. A chargeable gain arises when on disposal of a capital asset such as land, buildings or shares, the consideration received exceeds the original cost of the asset.
A disposal refers to both the sale of an asset or a situation in which the asset is gifted to someone.
Specific rules apply in a situation where an asset is disposed of for no value, at undervalue, or in lieu of an asset whose value cannot be ascertained. The deemed consideration in such circumstances will be taken as the market value of the asset.
A capital loss can occur where the proceeds of sale are less than the original cost of the asset. A capital loss suffered may be used to reduce current or future capital gains on similar assets.
No CGT arises on transfer of an asset on death i.e. as part of a will.
CGT is a self-assessed tax.
The main body of legislation governing the treatment of capital gains and losses in Ireland is the Tax Consolidation Act 1997 (TCA’97).