How to work out how much CGT do you pay ?
You must file a return if you have disposed of an asset such as shares,land etc, even if there is no tax due.
CGT (captital gains tax) is only applied to the ‘chargeable gain’, not the whole amount you receive. The chargeable gain of an asset is the difference between:
- the amount you received for it (the sale price) and the
- the amount you paid for it (the purchase price) and any ‘allowable expenses’.
You must calculate your chargeable gain for the whole tax year which is on a calendar year basis.
If you have more than one gain, you must add them together. You will also need to deduct any losses. All of this information will need to be detailed on your return.
If you owned the asset before 2003, you may claim indexation relief.
You might need to use the ‘market value’ instead of the sale price or purchase price. For example, if you gift an asset to someone instead of selling it or gifting it to family. The market value of an asset is the best price you would get if you sold the asset on the open market.
Any queries on the above give me a call on 091 763817 or email oliver@taxreturnhelp.ie