private motor cars CGT exemptions

ygolometsipe

According to this link, there is zero capital gains on the sale of a private motor car.

https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/cgt-exemptions.aspx

So If I buy a car (real bargain) for 5K and sell it for 8K, I pay zero CGT?
Even tho the 3K is well above my personal allowance?

That seems strange seeing as by the same link, if i sold furniture worth > €2,540
I would have to pay tax on it.

Peregrinus

Cars are regarded as a wasting asset - if you buy a car to use you nearly always sell it for less than you paid for it. So if disposals of cars were chargeable to CGT, then for every skilled or fortunate taxpayer like yourself who once or twice in a lifetime generates a chargeable gain by selling a car for more than he paid for it there would be hundreds of taxpayers generating chargeable losses, which they could set off against other chargeable gains to reduce their tax bills. So from the point of view of the public revenue it makes sense that transactions in cars are outside the scope of the CGT net.

The only people who routinely sell cars for more than they paid for them are car dealers and they, of course, are subject to income tax, not CGT, on the profits of their trade.

ygolometsipe

Great answer, thank you! it actually makes a lot of sense the way you worded it.