Capital Gains Tax

Q: I sold a property in December 2015 and made a large gain. When do I have to pay Capital gains tax? Also, do I have to make a return? Can I just make payment when filing the return?    

22nd January 2016

A: There are two payment deadlines.  CGT on gains made between 1st January and 30th November 2015 should have been paid by the 15th December 2015 whilst CGT on gains in December is due to be paid by the 31st January 2016. So, in your case you will need to pay your liability by the end of the month. 

 

You will also have to file a CGT return with the Revenue Commissioners however this is not due straight away, you have until 31st of October 2016 (i.e.the year following when the gain was made). You asked could you wait to pay until filing the return. If you do this, a late fee surcharge will apply of up to 10% of the liability. Interest may also be applied by Revenue on a daily basis, backdated to the original payment date i.e. the end of January so it is in your interest to pay the liability sooner rather than later.

 

Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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