By Richie Lennon
Ireland’s CGT annual exemption is €1,270 per individual per calendar year. It applies to gains, not the amount you sell an asset for, and cannot be carried forward or transferred to a spouse. The standard CGT rate is 31% for most disposals from 7 October 2026; earlier disposals generally used 33%. The exemption is useful, but a business exit needs a wider relief and ownership review.
A small exemption can help. It should not become the whole tax plan.
Owners often know about Entrepreneur Relief but leave the structure and conditions until an offer arrives. An annual allowance worth a few hundred euro is worth using. On a substantial sale, getting the main reliefs right matters far more.
This guide explains the allowance with practical disposal examples and shows where the planning conversation needs to go beyond it.
What Is Capital Gains Tax (CGT) In Ireland?
CGT can arise when you sell, give away or otherwise dispose of an asset. It is generally calculated on the gain after allowable costs, rather than the total proceeds.
Personal share sales, investment property and some business assets can fall within CGT. Crypto treatment depends on the activity; a capital disposal and trading income are different questions. Some assets have specific exemptions or other tax regimes.
Companies do not receive the individual annual exemption. Their gains are generally dealt with through Corporation Tax, with separate rules for development land. Keep a sale by the company separate from an owner selling personal shares.
Understanding The CGT Annual Exemption
Each individual has a €1,270 exemption for the calendar year. It is one allowance across the relevant gains, not a separate allowance for every asset or transaction.
Unused allowance does not roll into the next year. A spouse or civil partner cannot transfer their unused exemption to you. The gain still needs to be included in the appropriate return.
For an illustrative €3,000 gain on a disposal after 6 October 2026, with no other gains, losses or reliefs:
| Calculation | Amount |
|---|---|
| Gain | €3,000.00 |
| Annual exemption | €1,270.00 |
| Taxable gain | €1,730.00 |
| CGT at 31% | €536.30 |
Without the allowance, the tax would be €930. The saving is €393.70. At the earlier 33% rate, the corresponding saving was €419.10.
See Revenue’s calculation guidance.
What Assets Does The Capital Gains Annual Exemption Cover?
Selling Shares in Your Company
An owner selling personally held shares may use the allowance against a chargeable gain. Check whether a business relief applies as well.
Property Disposals
An investment property disposal can create a gain. Your own home may qualify for Principal Private Residence Relief, subject to the facts. Do not apply a general property example to development land, which retains a different standard rate.
Business Asset Sales
Personally owned business assets need individual treatment. Equipment may also involve capital allowances and other provisions. The annual exemption is not a substitute for calculating the disposal correctly.
Crypto Disposals
Record acquisition costs, disposal values and dates, including exchanges between assets where relevant. Do not assume tax only arises when money reaches the bank.
Gifts and Inheritances
A gift can create CGT for the person giving the asset away, using market value. The recipient may separately face Capital Acquisitions Tax. If an inherited asset is later sold, the subsequent gain needs its own calculation.
Current CGT Rates And How They’re Calculated
Revenue confirms that the standard rate for most disposals changed from 33% to 31% on 7 October 2026. Development land remains at 33%. Qualifying Entrepreneur Relief has its own 10% rate.
The disposal date matters. For a written contract, Revenue says it is usually the contract date. Receiving the money later does not automatically move the gain into a new year or rate.
For example, shares cost €20,000, sell for €35,000 and have €1,500 allowable disposal fees. Assume no other gains, losses or reliefs.
| Calculation | Amount |
|---|---|
| Proceeds | €35,000.00 |
| Cost | €20,000.00 |
| Allowable fees | €1,500.00 |
| Gain | €13,500.00 |
| Annual exemption | €1,270.00 |
| Taxable gain | €12,230.00 |
| CGT at 31% | €3,791.30 |
Without the exemption, tax would be €4,185.00. The saving is €393.70. For the same facts at the earlier 33% rate, CGT was €4,035.90.
These are illustrations, not client cases. Where losses or different relief rates apply, calculate the full year’s position before allocating the exemption.
When And How You Pay CGT
| Disposal period | Payment deadline |
|---|---|
| 1 January to 30 November | 15 December that year |
| December | 31 January the following year |
The normal return deadline is 31 October of the year after disposal, including where relief or losses mean no tax is due. Payment and filing are separate deadlines.
A November 2026 disposal normally means payment by 15 December 2026 and a return by 31 October 2027. A December 2026 disposal normally means payment by 31 January 2027.
Use the payment and return route appropriate to you, which can involve ROS or myAccount and the relevant return. Follow Revenue’s pay-and-file instructions.
CGT Annual Exemption vs Other Capital Gains Reliefs
The annual exemption is not the main relief on a substantial business sale. Nor should reliefs be stacked without checking how they interact.
Retirement Relief
Retirement Relief generally starts at 55, subject to qualifying conditions; you do not necessarily have to retire.
For qualifying disposals from 2025, the age bands are 55–69 and 70 or over. Transfers to a child have €10 million and €3 million limits respectively. Outside-family disposals have €750,000 and €500,000 lifetime limits. These concern qualifying asset values, not an annual gain allowance.
Marginal relief can limit tax just above a third-party threshold. A child’s disposal within six years can trigger a clawback. A separate deferral above €10 million has a twelve-year rule.
Age alone is not enough. Ownership, use and company-role conditions need reviewing. Use Revenue’s Retirement Relief guidance for the full conditions.
Entrepreneur Relief
Revised Entrepreneur Relief can give a 10% rate on qualifying business gains. The lifetime limit is €1.5 million for gains arising from 1 January 2026; earlier qualifying gains count towards the limit.
Ownership, working-role and qualifying-trade conditions matter. Having an active business does not automatically make the whole group qualify. See Revenue’s guidance.
Check these conditions years before a sale, while you still have choices. Do not assume every family member qualifies or that a late change of share ownership creates another relief entitlement.
Strategic Ways To Maximise The CGT Annual Exemption
Time Your Disposals Across Tax Years
Genuine disposals in separate calendar years may use each year’s available allowance. But assess the contract date, price risk, fees and commercial terms before splitting a transaction.
At 31%, a second fully used €1,270 exemption can save another €393.70. That is a useful saving, not a reason to put a much larger deal at risk.
If two genuine disposals each generate sufficient gains in different years, both exemptions can be used. Merely receiving €25,000 in November and €25,000 in January under one disposal does not establish two gains. The gain, rather than the proceeds, determines how much of the exemption you can use.
Gift Shares Gradually
The giver’s gain is the CGT question. The recipient’s exemption does not shelter that gain.
If two parents each make a taxable gift of personally owned shares to their children, the parents may each have a €1,270 allowance available against their own gains. That is €2,540 of gain across two disposers, not four allowances because two children receive gifts.
The children’s gift-tax position is a separate CAT question.
Use Exemptions Between Spouses
Each spouse or civil partner has their own allowance against their own gains. Joint ownership may allow both to use an exemption, but ownership and gain allocation must support the calculation. An unused allowance cannot simply be shifted between spouses.
Track Small Disposals Carefully
Keep a complete yearly record. Several small disposals can add up, and different assets may need different tax treatment.
CGT Planning For Business Owners And Directors
Selling Shares in Your Company
Start with who owns the shares, who is selling and which conditions are met. An investor buying existing shares and a company issuing new shares are different transactions.
Asset Disposals on Exit
A company selling assets is different from you selling shares. Compare the company tax, personal extraction and commercial terms. Do not describe both as a single personal CGT calculation.
Planning for Larger Transactions
The offer can be larger than you expected, while a relief limit remains fixed. Review the ownership and qualifying structure well before negotiations become binding.
Ask for a written explanation of the reliefs available, the conditions met, the tax provision and what could disqualify a claim. If the conversation only covers the annual €1,270 allowance, it has not addressed the exit.
Common Mistakes To Avoid
- Treating €1,270 as exempt sale proceeds rather than exempt gains.
- Assuming there is a separate allowance for every disposal.
- Using a child’s exemption against a parent’s gifted gain.
- Confusing company asset sales with personal share sales.
- Using the payment date to decide the tax year.
- Omitting a return because the gain is covered by an exemption.
- Assuming all funds, crypto and property use the same rules.
Has The CGT Annual Exemption Changed?
The current exemption remains €1,270. The important October 2026 change is the standard rate for most disposals, now 31% from 7 October.
Use the rate and relief rules for the actual disposal date. A guide updated after the Budget should not silently recalculate a historic transaction at the new rate.
How Around Finance Helps With CGT Planning
Around Finance’s tax service is the starting point for discussing the transaction and advice needed. Agree specialist exit, valuation and relief work in the scope.
The useful output is a clear comparison before a commitment: who sells, what relief applies, when the tax falls due and how much cash remains. An accounting integration does not establish CGT eligibility automatically.
If your Irish business turns over €250,000 or more and you want to discuss the finance and tax support it needs, book a Finance Fit Call.
FAQs
What is the CGT annual exemption in Ireland?
It is €1,270 per individual per calendar year, applied to relevant gains. It is not an allowance against sale proceeds.
Who qualifies for the capital gains annual exemption?
Individuals can use it against their chargeable gains. Companies do not receive this personal allowance.
Does the CGT exemption apply to company sales?
It can apply to an individual selling personally owned company shares. It does not give the company an allowance when the company itself sells assets.
Can spouses both use the CGT annual exemption?
Each has a separate €1,270 allowance against their own gains. It cannot be transferred between them.
Has the CGT annual exemption changed?
The current exemption is €1,270. For most disposals, the standard rate changed to 31% from 7 October 2026. Earlier disposals generally used 33%; development land remains at 33%.
How can a tax adviser help with capital gains tax planning?
An adviser can check the disposal, costs, losses, relief conditions and deadlines, then compare the commercial options. For a business exit, start before an offer makes the structure difficult to change.
