Don’t Let Your Capital Gains Tax Allowances Go to Waste

Many PAYE workers assume Capital Gains Tax doesn’t apply to them… that is until they sell shares, crypto, or inherit an asset. But with a bit of smart planning, you can reduce or even eliminate your CGT bill. Here are the most useful reliefs and tips to use before 31 December.

  1. Use Your Annual Exemption (€1,270)
    Every individual can earn up to €1,270 in capital gains each year tax-free. If both you and your spouse or civil partner make disposals, you can each claim the exemption (but the exemption can’t be shared between you).
  2. Offset Past or Current Losses
    Sold assets at a loss? You can use those losses to reduce your taxable gain.
  • Losses must be registered with Revenue.
  • Unused losses carry forward indefinitely.
  1. Transfer to Your Spouse or Civil Partner
    Transfers between spouses are CGT-free. This can be useful to:
  • Transfer assets to make use of both annual exemptions.
  • Your spouse is deemed to have acquired the asset at your original cost and acquisition date.
  1. Time Your Disposal Strategically
    Selling in December versus January changes how quickly CGT is due to be paid. For disposals between 1st January and 30th November, tax must be paid by December 15th of the same year. For disposals in December, tax is due to be paid by 31st January (the following month).
  2. Get Your Records in Order
    You need documentation to support your claim:
  • Purchase price
  • Broker statements or legal contracts
  • Improvement and sale costs

Need help calculating your gains or claiming reliefs? FastTax.ie can handle your return and make sure you never pay more than you owe.

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