By Richie Lennon
Capital Gains Tax is charged on a taxable gain when you dispose of an asset, rather than on the whole sale price. Ireland’s standard rate is 31% for disposals from 7 October 2026; the previous 33% rate applies to earlier disposals. Individuals have a €1,270 annual exemption, subject to the rules. Payment deadlines come before the following year’s return deadline, so calculate the gain and reserve the cash when the disposal happens.
A sale can leave your bank account looking healthy while part of the money already belongs in the tax provision. A gift or exchange can create a taxable disposal without putting cash in the bank at all.
For a business owner, we would ask about the tax before the contract is signed. That is especially important if the transaction involves business assets, shares in your company or a family transfer. The relief depends on the facts, not on what you hoped to do with the proceeds.
What is Capital Gains Tax?
CGT generally applies to chargeable gains on disposing of assets. A disposal can be a sale, gift or exchange. Compensation for an asset can also fall within the rules.
The starting calculation compares the disposal value with the allowable acquisition cost and relevant costs. Reliefs, losses, exemptions and special rules can change the result.
The owner making the disposal matters. A personal share sale and a company selling its assets are different transactions. Company gains follow the company’s tax reporting rules, and any subsequent payment to the owner needs its own treatment.
Revenue’s CGT overview explains the basic charge. Do not apply a personal allowance or personal payment timetable to a company without checking the rules.
The rate changed during 2026
| Disposal date | Standard CGT rate |
|---|---|
| Before 7 October 2026, under the preceding standard rate | 33% |
| From 7 October 2026 | 31% |
The 6 October financial resolution gives the reduction statutory effect for disposals from 7 October. This is different from a Budget proposal waiting to take effect in a later year.
The relevant disposal date needs to be established. Under a written contract it is usually the contract date, not simply when the sale proceeds arrive. Conditional arrangements can need closer examination. Do not assume you can choose a rate by delaying the bank transfer.
Different rates or regimes can apply to particular assets and reliefs. The standard rate is not a universal investment tax rate.
How to calculate a gain
For illustration, assume an individual sells ordinary shares after 7 October 2026, has no relevant losses, no special relief and the full annual exemption available:
| Calculation | Amount |
|---|---|
| Sale proceeds | €50,000 |
| Allowable acquisition cost | −€30,000 |
| Allowable disposal costs | −€1,000 |
| Gain before annual exemption | €19,000 |
| Annual personal exemption | −€1,270 |
| Chargeable gain | €17,730 |
| CGT at 31% | €5,496.30 |
The calculation is €50,000 minus €30,000 minus €1,000, then minus €1,270. The remaining €17,730 multiplied by 31% gives €5,496.30.
This is an illustration, not a client case. The actual calculation can involve multiple purchases, foreign currency, connected parties or historic rules. Use supported acquisition records rather than estimating what you originally paid.
The €1,270 exemption is annual for an individual, not per sale and not the company’s allowance. It cannot simply be carried forward because you did not use it last year.
Losses need their own treatment
An allowable capital loss can offset relevant gains, but not every fall in value is a realised allowable loss. Restrictions apply to some transactions, including connected-party and certain share dealings.
Current-year and carried-forward losses have rules about how and when they are used. Do not assume you can choose to save a loss while using the exemption first. Revenue explains allowable loss treatment.
Record and claim losses properly, retaining the supporting calculation. An investment statement showing an unrealised loss is not necessarily the same as a CGT loss you can deduct.
Which assets can be affected?
Ordinary shares, investment property, land, business assets and some crypto transactions can fall within CGT. A valuable personal item can also need review, but there is no sound blanket rule that every item worth more than €2,500 is taxable.
Not every investment follows ordinary CGT rules. Certain funds, insurance products, securities and savings arrangements have their own tax treatment or exemptions. Identify the exact asset before choosing the tax calculation.
For property, establish whether the disposal is an investment disposal or part of a trade. Property development is not automatically taxed as a capital gain just because land is involved.
For foreign assets, residence, domicile, asset location and treaty provisions can matter. A double taxation agreement does not mean every foreign tax charge is automatically cancelled.
Your home and other reliefs
Principal Private Residence Relief can exempt all or part of a qualifying gain on your only or main home. Periods of occupation, qualifying absences, business use and the land involved can affect the result.
Do not automatically assume an occasional home-working arrangement removes relief, or that every property you have lived in is fully exempt. The facts and statutory conditions matter. Revenue’s PPR guidance sets out the rules.
Business disposals can qualify for Revised Entrepreneur Relief or Retirement Relief. Those names do not establish eligibility. The assets, ownership, working involvement, trading activity and disposal route need review.
Our business-sale CGT guide covers the decisions to examine before an exit. Its job is different from calculating an ordinary gain.
Gifts and inheritance
A gift can be a disposal at market value even when you receive nothing. The recipient may also need to consider Capital Acquisitions Tax. “No sale price” does not mean “no tax”.
Qualifying transfers between spouses or civil partners have special treatment, with exceptions and conditions. Do not generalise that treatment to every family member or every separation arrangement.
There is generally no CGT on the transfer of an asset on death. For a beneficiary’s later disposal, the acquisition value is normally the market value at the date of death, rather than the amount the deceased originally paid. Revenue explains the beneficiary’s position.
This is a useful reason to retain valuations and estate records. They support the later calculation as well as the inheritance paperwork.
Cryptocurrency is not just taxed when you cash out
Where crypto is held as an investment, selling, exchanging one asset for another or using it to buy something can create a disposal. If the activity amounts to trading, a different analysis applies.
Keep the transaction history, dates, euro values, acquisition costs and fees. Transfers between wallets you own should be distinguished from disposals rather than all treated as sales.
A platform’s summary in another currency is not a finished Irish tax calculation. Reconcile the wallet and exchange records and identify the actual transactions. Use the disposal-date rate and applicable rules, not a blanket 33% formula copied from an old guide.
For a business receiving crypto payments, the income on receipt and any subsequent gain or loss are separate questions. Establish both with the accountant before relying on the bank balance.
Payment and filing are separate deadlines
For ordinary personal CGT, the main timetable is:
| Disposal period | Payment deadline |
|---|---|
| 1 January to 30 November | 15 December of that year |
| 1 December to 31 December | 31 January of the following year |
The return is normally due by 31 October of the following year. Revenue sets out the payment, filing and disposal-date rules.
For example, a chargeable disposal in October 2026 normally requires payment by 15 December 2026. Waiting until the 2026 annual return is prepared in 2027 is too late for that payment.
Use the return appropriate to your position, such as Form 11 where you are in Income Tax self-assessment, or CG1 where applicable. Filing may still be required where a relief or exemption means no payment is due. Check the actual obligation rather than deciding that “zero tax” means no return.
Keep evidence beyond the bank receipt
Retain purchase and disposal contracts, cost records, invoices for allowable expenditure, valuations and the gain calculation. Keep records of share reorganisations and previous relief claims where relevant.
Long-held assets need acquisition evidence when sold. A six-year routine document policy should not cause you to discard the only evidence of an asset’s original cost before the disposal occurs.
Before a significant transaction, ask for the expected tax, payment date and relief conditions in writing. Reserve the cash and decide who will file and pay. That turns the tax from an unpleasant discovery into part of the transaction plan.
If you run a growing Irish business turning over €250,000 or more, a Finance Fit Call can establish whether Around Finance’s ongoing support fits your needs. Our tax accounting service provides the commercial starting point; complex disposal or structuring work needs a separately agreed scope.
FAQs
What is the CGT rate in Ireland now?
The standard rate is 31% for disposals from 7 October 2026. Earlier disposals fall under the preceding standard rate of 33%, subject to the actual rules and reliefs for the asset.
Is CGT charged on the whole sale price?
No. It is charged on the taxable gain after the relevant allowable costs, losses, reliefs and exemptions. A market-value rule can replace the amount actually received in some transactions.
When do I pay CGT?
Ordinary personal CGT on January-to-November disposals is paid by 15 December that year; December disposals are paid by 31 January the next year. The annual return deadline is separate.
Can I avoid CGT by gifting an asset?
Not simply by gifting it. Gifts can be disposals at market value. Particular exemptions and reliefs need to be checked, and the recipient’s CAT position can be relevant too.
What value do I use for an inherited asset?
For a later disposal, the starting acquisition value is normally its market value at the date of death, rather than the deceased’s original purchase cost.
Does swapping cryptocurrency count as a disposal?
It can. Exchanging one crypto asset for another is not automatically tax-free because no euros were withdrawn. Keep euro-valued records and establish whether the activity is investment or trading.
What if I sell my business?
Review the actual disposal and relief conditions before signing. A sale of your shares, a sale of assets by your company and a sole trader business disposal have different consequences.
