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Capital Gains Tax Exemptions

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  • 15-08-2019 4:21pm
    #1
    Ottoman_1000
    Registered Users Posts: 2,512 ✭✭✭


    Hope I am explaining this right as I tax and everything it involves was always my weakest subject in school/college!!!

    Anyway, here we go; I have inherited some land and a site from my mother. I am currently in the process of selling it. But I am curious how the capital gains tax exemptions work. According to their website I fall in to category Group A and it states that as of October 2018 I would be exempt from CGT on any profits unto €320,000k. Its not near that much don't worry.

    Is this correct or I am misunderstand something?

    Thanks in advance,


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    #2
    Geuze
    Registered Users Posts: 13,066 ✭✭✭✭Geuze


    It seems you may be confusing CAT and CGT?


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    #3
    Geuze
    Registered Users Posts: 13,066 ✭✭✭✭Geuze


    https://revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx

    CAT


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    #4
    Ottoman_1000
    Registered Users Posts: 2,512 ✭✭✭Ottoman_1000


    Geuze wrote: »
    https://revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx

    CAT

    Now i am even more confused, this is what I am referring to;

    https://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_gains_tax.html


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    #5
    Dolbhad
    Registered Users Posts: 782 ✭✭✭Dolbhad


    Geuze wrote: »
    It seems you may be confusing CAT and CGT?


    I agree. You may not be liable for CAT but CGT May still catch you depending on your circumstances.


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    #6
    Ottoman_1000
    Registered Users Posts: 2,512 ✭✭✭Ottoman_1000


    My solicitor is the person that told me about CGT, he did not mention anything about CAT...


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    #7
    Ottoman_1000
    Registered Users Posts: 2,512 ✭✭✭Ottoman_1000


    Dolbhad wrote: »
    I agree. You may not be liable for CAT but CGT May still catch you depending on your circumstances.

    Yes it reads on the website that I am exempted but no doubt I am misinterpreting something.


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    #8
    Baby01032012
    Registered Users Posts: 1,622 ✭✭✭Baby01032012


    Exempted from CAT but not CGT

    CAT is the tax on the gift from your mother as your relationship to her falls under Category A which is a lifetime exemption on all gifts received from your mother and father up to 330,000 I think it is.

    CGT is tax at 33% on any gain when you sell the land/site. Gain is value you sell it for less deemed value at date you inherited it from your mum less any costs in inheriting and disposing of it i.e. legal costs less 1,270 being an annual exemption in year you sell it.

    Example
    Sell for 100,000
    Value at date you received it from your mum 80,000
    Gain 20,000
    less say legal fees on sale 5,000
    less 1,270

    So taxable gain in example above is 13,730 taxed at 33% is 4,531


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    #9
    Ottoman_1000
    Registered Users Posts: 2,512 ✭✭✭Ottoman_1000


    Baby01032012 wrote: »
    Exempted from CAT but not CGT

    CAT is the tax on the gift from your mother as your relationship to her falls under Category A which is a lifetime exemption on all gifts received from your mother and father up to 330,000 I think it is.

    CGT is tax at 33% on any gain when you sell the land/site. Gain is value you sell it for less deemed value at date you inherited it from your mum less any costs in inheriting and disposing of it i.e. legal costs less 1,270 being an annual exemption in year you sell it.

    Example
    Sell for 100,000
    Value at date you received it from your mum 80,000
    Gain 20,000
    less say legal fees on sale 5,000
    less 1,270

    So taxable gain in example above is 13,730 taxed at 33% is 4,531

    thanks for that, now it makes sense. Why don't they explain things like this on the website?


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    #10
    Geuze
    Registered Users Posts: 13,066 ✭✭✭✭Geuze


    CAT is a tax when you acquire an asset by a gift or inheritance.


    CGT is a tax when you make a gain on the disposal of an asset.


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    #11
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    LawBoy2018 wrote: »
    Sorry to hijack guys - but I have a general CGT query that I can't find any answer for.

    Are fine alcoholic beverages (whiskey/wine/etc) classified as wasting assets here in Ireland?

    Well they are an asset you can get wasted on
    Sorry could not resist
    As to your question I have no idea


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