The CGT Annual Exemption Explained: How To Keep More Of Your Profits When You Sell

Here’s a mistake I see all the time: business owners selling shares or assets without thinking about timing.

Imagine you’re selling shares in your company. You complete two transactions—one in November, another in January. Both generate small gains, maybe €5,000 total. You assume the timing doesn’t matter much, so you file everything together on your annual return.

But here’s what gets missed: by splitting those transactions across two tax years, you could use your CGT annual exemption twice. When you bunch everything into one year, you waste one exemption entirely and potentially hand Revenue an extra few thousand euro.

This pattern repeats constantly. Most business owners understand the basics of capital gains tax. They know it exists. They know it’s 33%. What they often don’t realise is that Irish tax law gives you a small but valuable allowance every single year—and it frequently goes unused or underutilised.

The CGT annual exemption lets you realise up to €1,270 in capital gains completely tax-free each year. That might not sound like much, but when you’re strategic about timing asset sales, spreading disposals across tax years, or planning an exit from your business, this exemption can save you thousands.

I’m going to walk you through exactly how this exemption works, who qualifies, and the specific strategies that can help you maximise it. No jargon. No theory. Just practical advice you can apply immediately.

What Is Capital Gains Tax (CGT) In Ireland?

Let me start with the basics because you can’t optimise an exemption if you don’t understand the underlying tax.

Capital gains tax is what Revenue charges on profits you make when you sell or dispose of an asset. Notice I said profits, not the sale price. If you bought shares for €10,000 and sold them for €15,000, you’re taxed on the €5,000 gain, not the full €15,000.

CGT applies to individuals, not companies. If your limited company sells an asset, that’s corporation tax territory. But if you personally own shares in your business and sell them, or if you dispose of property or crypto or business equipment as an individual, CGT comes into play.

Here’s what usually gets taxed:

• Property (though your principal private residence usually gets an exemption)
• Shares in both private and public companies
• Business assets like equipment, goodwill, or intellectual property
• Crypto assets (yes, Revenue now treats these as capital assets)
• Gifts and inheritances if you later sell them at a profit

The standard rate is 33%. That’s one of the highest capital gains rates in Europe, which makes planning around it even more important.

Understanding The CGT Annual Exemption

Right, here’s the exemption itself and how it actually works.

The CGT annual exemption allows individuals in Ireland to realise up to €1,270 in capital gains per year without paying any tax.

This is your personal allowance. Every individual gets one. It resets on 1 January each year. You don’t need to apply for it or claim it specially—it automatically reduces your taxable gains when you file your return.

Here’s a simple example. You sell shares and make a €3,000 gain. You subtract the €1,270 exemption, leaving €1,730 subject to CGT at 33%. Your actual tax bill is €571 instead of €990. You’ve just saved €419 by using an exemption you were entitled to anyway.

The key word here is “individuals.” Companies don’t get this exemption. Only people do. So if you’re a sole trader, a director selling personal shares, or someone disposing of property or crypto, you qualify. If your limited company sells assets, you don’t.

What Assets Does The Capital Gains Annual Exemption Cover?

The exemption applies to pretty much any capital gain you realise as an individual. Let me break down the most common scenarios for business owners.

Selling Shares in Your Company

This is probably the biggest use case for the founders I work with. When you sell shares in your company, whether to another shareholder, an outside investor, or as part of an exit, any gain you make personally is subject to CGT. The annual exemption reduces that taxable gain by €1,270.

Property Disposals

If you sell investment property or commercial property you own personally, the gain is subject to CGT. Your principal private residence typically gets a full exemption, but rental properties, holiday homes, or business premises don’t. The annual exemption applies to these sales.

Business Asset Sales

Selling business equipment, goodwill, intellectual property, or other assets you own personally? The gains are taxable. The exemption reduces your bill.

Crypto Disposals

Revenue treats cryptocurrency as a capital asset, not currency. When you sell Bitcoin, Ethereum, or any other crypto and realise a gain, CGT applies. The annual exemption covers these transactions too.

Gifts and Inheritances

If you receive assets as a gift or inheritance and later sell them at a profit, CGT applies to the gain. The exemption can reduce your tax bill on these disposals.

Current CGT Rates And How They’re Calculated

The standard Capital Gains Tax (CGT) rate in Ireland is 33%, and this applies to the vast majority of personal asset disposals—shares, investment properties, crypto, and business assets you own personally.

There are a few niche situations where different tax rules apply (for example, certain offshore funds or foreign life policies that fall under Ireland’s “exit tax” regime), but for almost all business owners and investors, 33% is the rate that matters.

Here’s how the calculation works step by step:

1. Determine your gain: Sale price minus purchase price minus allowable expenses (like legal fees, improvement costs, or acquisition costs)
2. Apply the annual exemption: Subtract €1,270 from the gain
3. Calculate tax: Multiply the remaining gain by 33%

Let me show you a realistic example. You bought shares in your company for €20,000. You sell them for €35,000. Your solicitor charges €1,500 in fees.

• Sale price: €35,000
• Purchase price: €20,000
• Expenses: €1,500
• Gross gain: €13,500
• Less exemption: €1,270
• Taxable gain: €12,230
• CGT at 33%: €4,036

Without the exemption, you’d pay €4,455. The exemption saves you €419.

When And How You Pay CGT

Ireland operates a self-assessment system for CGT. You’re responsible for calculating your tax, filing your return, and paying on time. Revenue doesn’t send you a bill.

The payment deadlines are:

• Disposals between 1 January and 30 November: Pay by 15 December of that year
• Disposals in December: Pay by 31 January of the following year

You file and pay CGT directly through Revenue Online Service (ROS). Accounting software may help track transactions, but CGT returns must be submitted manually via ROS. Missing these deadlines triggers interest charges, so get them in your calendar.

CGT Annual Exemption vs Other Capital Gains Reliefs

Here’s where it gets interesting. The annual exemption works alongside other CGT reliefs. You’re not choosing one or the other—you can use multiple reliefs together to reduce your tax bill even further.

The main reliefs business owners should know about:

Retirement Relief

If you’re aged 55 or over and transferring business assets, you may qualify for significant relief. Transfers to family members can be exempt up to €10 million. Transfers to non-family can be exempt up to €750,000. The annual exemption still applies to any remaining taxable gain.

Business Asset Disposal Relief

This relief applies when you dispose of qualifying business assets and can reduce your effective CGT rate. The annual exemption works on top of this relief.

Entrepreneur Relief

For qualifying entrepreneurs and investors, certain gains may be eligible for reduced rates or exemptions. Again, the annual exemption applies to gains not covered by other reliefs.

The key point: even when you qualify for major reliefs, the CGT annual exemption still reduces your taxable gains by €1,270. Every little bit helps when you’re dealing with substantial transactions.

Strategic Ways To Maximise The CGT Annual Exemption

Right, this is where we get tactical. The exemption might be small, but smart timing multiplies its value significantly.

Time Your Disposals Across Tax Years

This is the single most effective strategy. Instead of selling all your shares in one go, split the transaction across two tax years. You use the exemption twice and save an extra €419.

Imagine a scenario where you’re selling €50,000 worth of shares. Rather than completing everything in November, you could structure the sale as two tranches—€25,000 in November and €25,000 in January. Each transaction would use one year’s exemption. Total savings: €838 instead of €419.

Gift Shares Gradually

If you’re transferring shares to family members, spread the gifts across multiple years. Each individual recipient has their own €1,270 exemption. If you and your spouse transfer shares to your two adult children, that’s four exemptions available each year—over €5,000 in gains exempt from CGT.

Use Exemptions Between Spouses

Both spouses get the annual exemption independently. If you hold assets jointly or separately, you can both claim €1,270 in exempt gains. For a married couple disposing of jointly held assets, that’s €2,540 exempt each year.

Track Small Disposals Carefully

Many business owners make small asset disposals throughout the year—selling equipment, disposing of shares in small tranches, realising crypto gains. These often fly under the radar, but they add up. Track everything carefully and apply your exemption to the most tax-efficient combination of gains.

CGT Planning For Business Owners And Directors

For the e-commerce brands, SaaS startups, and marketing agencies we work with at Around Finance, CGT planning becomes critical around three scenarios.

Selling Shares in Your Company

Whether you’re exiting completely, selling to a co-founder, or bringing in an investor, structure the transaction to maximise exemptions and reliefs. If your gain is large enough, spreading the sale across two tax years uses two exemptions and potentially qualifies for multiple relief thresholds.

Asset Disposals on Exit

When you sell your business, you’re often disposing of multiple assets—shares, intellectual property, equipment, goodwill. Some of these disposals might qualify for different reliefs. The annual exemption applies to gains not otherwise relieved.

Planning for Larger Transactions

Even with a €500,000 exit, the €1,270 exemption matters. It’s part of a broader tax efficiency strategy that includes timing, relief planning, and structure optimisation. Our tax services help clients model scenarios and plan sales around all available exemptions and reliefs.

Common Mistakes To Avoid

I see these errors constantly. They’re all completely avoidable.

• Bunching all disposals into one year. You waste future exemptions and pay more tax immediately. Spread sales across years whenever possible.
• Failing to report gains below the exemption threshold. Even if your gain is under €1,270, Revenue still wants to know about it. File the return showing the gain and the exemption applied.
• Confusing personal and company sales. Only personal asset disposals qualify for the annual exemption. Company-level transactions don’t count.
• Ignoring the exemption on inherited assets. If you inherit shares or property and later sell at a profit, the exemption applies to your gain. Don’t overlook it.
• Not tracking losses. Capital losses can offset gains in the same year or carry forward. Track everything meticulously so you know exactly what gains need exempting.

Will The CGT Annual Exemption Change In 2026?

There are no confirmed changes to the CGT annual exemption in Budget 2026. The €1,270 threshold has remained stable for several years, and recent Budgets have focused more on reliefs for start-ups and SMEs rather than adjusting the annual exemption.

That said, tax policy changes regularly. The exemption could increase, decrease, or be eliminated entirely in future Budgets. My advice: use it proactively while the current rules are in place. If you’re planning asset disposals over the next few years, structure them now to maximise exemptions under today’s regime.

If changes do come, Around Finance keeps clients updated immediately and helps adapt strategies to whatever new rules emerge. Tax planning isn’t set-and-forget—it requires constant monitoring.

How Around Finance Helps With CGT Planning

We help structure asset sales and disposals to maximise exemptions and reliefs. When you’re planning an exit or significant transaction, we model different scenarios to show you exactly how timing affects your tax bill.

Our bookkeeping integrates with Xero, QuickBooks, Sage, and Surf Accounts, so your CGT records are accurate and complete from day one. We track acquisitions, disposals, and gains automatically rather than scrambling at year-end.

We use forecasting dashboards like SyftAnalytics and Store Hero to help you plan asset sale timing around cash flow, valuation, and tax efficiency. You see the full picture before making decisions.

Ready to stop overpaying CGT? Contact us to discuss your specific situation and how we can help you keep more of what you’ve built.

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