Under current tax legislation, a person is obliged to pay Capital Gains Tax (CGT) on a disposal of an asset, if a taxable gain arises, by the following deadlines:
|Disposal Periods||Tax due date|
|1 January – 30 November 2020||15 December 2020|
|1 December – 31 December 2020||31 January 2021|
The current rate of CGT is 33%.
Therefore, if you disposed of an asset between 1 January 2020 and 30 November 2020, or you will be disposing of an asset before 31 December 2020, please contact us before the relevant payment dates outlined above! We can advise you on any liability that may arise and identify possibilities to mitigate your tax liability.
Failure to pay the correct amount by the relevant deadline could result in interest and penalties being applied by the Revenue Commissioners. Where you have a CGT liability, consideration should be given to the crystallisation of CGT losses prior to 31 December 2020 and the utilisation of any reliefs available that may be able to mitigate the amount of the capital gain that is subject to CGT.
There are a number of reliefs that individuals can avail of such as Retirement Relief, Same-Event Credit, Principal Private Residence Relief, and Entrepreneur’s Relief etc. If you would like more information on such reliefs and whether they apply to you, please feel free to contact us on .