When Do You Pay CGT?

paul7g

Hi,

I received a small return in January this year, for a small investment I personally made last year (friend's business).

I have received 3 different opinions from 3 different people on when you need to pay the Capital Gains Tax.

1. One said I don't need to pay it until the year end (i.e - Dec)
2. Another said end of October as that is when you need to submit returns
3. Another said it should have been paid a few weeks after receiving the funds

Who is right? Thanks for your help.

Gloomtastic!

https://www.taxreturnplus.ie/capital-gains-tax/#:~:text=The%20CGT%20return%20deadline%20is,Gains%20Tax%20returns%20each%20year.

October of the following year you cashed in, according to above.

paulpd

Pay CGT by 15th December this year.

Return the actual gain in your 2023 income tax return when you file it next year.

SureYWouldntYa

Gains from Jan to Nov 2023 - tax is due on or before 15th December 2023

Gains during Dec 2023 - tax is due on or before 31st January 2024

The gain will then need to be reported on your tax return (Form 11 if Income Tax registered, Form CG1 if not) which is due on or before October 31st 2024 (extended to mid November 2024 if filing online via ROS)

Gloomtastic!

All different answers, what a surprise. 🙄

As long as you pay it, I don’t think Revenue gives a toss when. Keeps accountants and lawyers in jobs though.

SureYWouldntYa

https://www.boards.ie/discussion/comment/121259544#Comment_121259544

It's true that don't always charge interest or penalties on late payments or returns, but they have the option to when you don't. And if it's a large amount you can bet Revenue will give a toss

Gloomtastic!

https://www.boards.ie/discussion/comment/121267329#Comment_121267329

Reading the OP, it doesn’t appear too large so they shouldn’t worry too much.

downtheroad

https://www.boards.ie/discussion/comment/121259544#Comment_121259544

You gave the wrong answer.

OP if you sold your stake in January 2023 and made a gain then 15th December 2023 is your CGT payment deadline and 31st October 2024 is your CGT return deadline.

CGT is a strange one, you pay the tax first and file the return after.