Capital Gains Tax (CGT) can arise on the disposal of worldwide assets, such as property or shares, by individuals resident or ordinarily resident and domiciled in Ireland. Tax is due on the difference between the sale proceeds and the base cost of the asset (increased by an inflation-linked index). Costs of disposal are deductible and there are also a range of exemptions and reliefs.
The CGT implications of a transaction can be substantial and they need to be assessed to ensure it is financially viable. CGT can be triggered by a myriad of exchanges including:
- Business reconstructions and reorganisations – any transaction involving the transfer of a business or shares
- Transferring wealth to the next generation – gifting assets may trigger CGT liabilities for the transferor but there may be exemptions and reliefs available depending on the conditions of the transfer and relationships between the individuals
- Companies undertaking mergers or acquisitions, or indeed sole traders or partnerships taking over other businesses
- Planning for retirement, particularly disposing of a family business or assets. There are complex interrelationships between CGT and transactions aimed at funding retirement.
- Intra-family business transfers and farm transfers
Whether a transaction is a straightforward transfer from one family member to another or a large complex deal with many parties we work with our clients providing structured tax planning solutions to maximise their return.