Connect with us

News

KNOW YOUR RIGHTS: Capital Gains Tax

Published

on

0237681_Citizens-Information_810_x_4560.jpg

You dispose of an asset when you sell it, give it as a gift, exchange it or get compensation or insurance for it.

If you make a profit or gain when you dispose of an asset, you are liable to pay Capital Gains Tax (CGT) on the chargeable gain. The chargeable gain is usually the difference between the price you paid for the asset and the price you disposed of it for. You can deduct allowable expenses such as the cost of acquiring and disposing of the asset.

When you dispose of an asset, you must file a tax return for CGT by October 31 of the following year.
Although you may file your return the following year, you must pay the Capital Gains Tax in the same year as you dispose of the asset, unless the disposal is in December.

Capital gains that are exempt

Transfers of assets between spouses and civil partners are exempt from Capital Gains Tax. Transfers of assets between spouses and civil partners who are separated are exempt from Capital Gains Tax if they are made under a Separation Agreement or a court order. The transfer of a site from parent to child is exempt if it is to build the child's principal private residence but the land must be less than one acre and have a value of €500,000 or less.

There is no Capital Gains Tax on assets that are passed on death. The assets are treated as if the person who died got the assets at the same value they have on the date of death. If a personal representative disposes of the assets, they are responsible for any gains between the date of the person’s death and the date of disposal.

Principal Private Residence Relief

You may be exempt from CGT If you dispose of a property you own that you lived in as your only or main residence. This relief may also apply if you dispose of a property that you provided for free to a widowed parent or incapacitated relative to use as their sole residence.

There are some restrictions to Principal Private Residence Relief, including that you can only claim the relief for:

The part of the house that you used as your home

The time you lived in the property, with some exceptions for work or health reasons

The value of the property as you currently use it, rather than for development potential

Other exemptions

Other exemptions from Capital Gains Tax include gains from:

Betting, lotteries, sweepstakes and prize bonds

Bonuses payable under the National Instalments Savings Schemes

Government stocks

Certain life assurance policies

Moveable property, if the gain is €2,540 or less

Animals

Private motor cars

If you dispose of land or buildings you acquired between December 7, 2011 and December 31, 2014 you can get relief from CGT in certain cases.

Rate and payment of Capital Gains Tax

The standard rate of Capital Gains Tax is 33% of the chargeable gain you make. A rate of 40% can apply to the disposal of certain foreign life assurance policies and units in offshore funds. For certain windfall gains the windfall gains rate of tax is 80%.

Deductions

You can deduct allowable expenses from the chargeable gain, including:

Money you spent that adds value to the asset

Costs to acquire and dispose of the asset (for example solicitor fees)

You may also be able to deduct an allowable loss you made in the same tax year.
 

When to pay CGT

The tax year is divided into two periods:

An 'initial period' from January 1 to November 30

A 'later period' from December 1 to December 31

For disposals in the initial period CGT payments are due by December 15 in the same tax year. CGT for disposals in the later period are due by January 31 in the following tax year. For example, if you dispose of an asset in the period January to November 2022 you must pay the Capital Gains Tax due to Revenue before December 15 2022. If you dispose of an asset in December 2022, the Capital Gains Tax will be due on January 31 2023.

How to pay Capital Gains Tax

If you are registered for CGT, you must pay your CGT online using Revenue Online Service (ROS) or myAccount. If you are not registered for CGT, you must register for CGT and then make a payment using ROS or myAccount.

How to Register

You can register for CGT:

If you have a tax registration number, by sending a request through MyEnquiries

If you have never been registered for tax, by completing Form TR1 (or FORM TR1 FT for self-assessment).

How to file a tax return for capital gains

You must file a tax return on all disposals. When you dispose of an asset, you must file a return by October 31 of the following year. Though you may file your return the following year, you must pay the Capital Gains Tax in the same year as the disposal of the asset, unless you dispose of the asset in December.

If you assess yourself for tax purposes (self-assessment) you should make a tax return on Form 11.
If you are a PAYE taxpayer you should make a return on Form 12. Trusts and Estates should make the return on Form 1. If you are not required to make an income tax return you must send a CG1 Form to Revenue. You can use ROS to file your Income Tax Return (Form 11), Form 1 or Form CT1. You can post the Form CG1 or Income Tax Return (Form 12) to your Revenue office. Forms are available online or you can contact your local Citizens Information Centre.

If you need further information about any of the issues raised here or you have other questions, you can call a member of the local Citizens Information Service in Kerry on 0818 07 7860. They will be happy to assist you and if necessary arrange an appointment for you.

Kerry HELPLINE 0818 07 7860 Monday to Friday from 10am to 4pm. Alternatively you can email tralee@citinfo.ie or log on to www.citizensinformation.ie.

The National Phone Service is available on 0818 07 4000 Monday to Friday 9am to 8pm.

Advertisement

News

New summer film festival launches at Anam Centre

Published

on

New summer film festival launches at Anam Centre


A new summer film festival has been launched at the Anam Cultural Centre in Killarney, featuring a series of works by local filmmaker Charlie O’Brien. The week-long event, titled Anam Echoes, runs from Sunday July 12 to Friday July 17.


The programme brings together documentaries, traditional music, and guest conversations, with a recurring thread of Irish connections to Latin America running through the week.
The festival opens on July 12 and July 13 with a screening of The Green Fields of Cuba, followed by a live concert with Argentine uilleann piper Pamela Schweblin. On July 14, the venue will screen The Trackless Wild, Song of a Wandering Tip, a documentary exploring the legacy of a 19th-century Irish ballad writer in Argentina, followed by a director’s Q&A.
On July 15, doors open at 8:30pm for a short portrait of the late fiddle player Eamon Flynn titled A Trip to Mountcollins, which will be followed by a traditional music session with Tim Browne and Charlie O’Brien. Musicians gain free entry to this session.
On July 16, in collaboration with the Kerry International Film Festival, there will be a screening of The Killarney Echo alongside a panel discussion on film production, costume, and sound with costume supervisor Ciara O’Connor, sound engineer Tony O’Flaherty, and Charlie O’Brien.
The series concludes on July 17 with A Captain Unafraid, a film charting the life of 19th-century sailor and rebel Johnny O’Brien, followed by a final director’s Q&A.

Doors open at 7:30pm each night, and tickets can be booked at charlieobrien.net/anam-echoes-film-series.

Continue Reading

News

Felicity’s Summer in Killarney — Chapter 3

Published

on

Felicity’s Summer in Killarney — Chapter 3




A new weekly series from Killarney Advertiser’s Jess Jukes


Jess Jukes, a member of the advertising department at the Killarney Advertiser, is also a budding writer. Each week, we will bring you her serialized novella following the adventures of Felicity’s summer in Killarney.



Felicity messaged Jack the following morning.

Hi, I hope you’re feeling better. I heard there was a woman with a new ice cream truck up in Tiernaboul. Do you want to go get your Dad’s ice cream truck back?
She made her toast and sat. Jack messaged back before she had finished her tea.

I’ll meet you at Daly’s, we can walk up together.
Felicity set out for the shop not long after. A dreary sky hung above her, a complete contrast to the day before. It wasn’t long before Jack came around the corner. He was no longer in his ice cream uniform, but in casual jeans and a flannel. He parked his bicycle and leant against the wall next to her.
“What’s this about my Da’s truck being up Tiernaboul?”

Felicity pushed off the wall. “I’ll tell you on our way up.” She told him everything. Jack mentioned how his Da had been quiet and sad when he and Auntie Sheila called to tell him about truck being stolen. He had been subdued still when he had picked Jack up and they went to the garda station to report the theft.

The two trailed through each and every estate, looking for the distinctive bright colours of the ice cream truck. They had been walking for a good half hour when they finally found it.

Jack came to a stop. “Well, you were right about the truck … but why did the woman steal it in the first place?”

That was the question. “Come on, let’s go round the corner and call the gardaí before anyone realises they’ve left the keys outside.”

Felicity and Jack backtracked quickly, and Felicity called in an anonymous tip to the garda station. She put on a nasally voice, saying, “I saw an ice cream truck parked in the driveway of my neighbour, and now I know her I do, and she doesn’t own an ice cream truck. She doesn’t have any permit for that, and I don’t want her trawling up and down the street at all hours trying to sell merchandise without a licence.”
She continued her ramble until the poor sergeant on the other end of the phone sighed in resignation. He promised to send somebody up to investigate and Felicity hung up, triumphant.

Jack was almost crying with laugher. “Jeez Felicity, you should audition for the Four Esquires.”

It wasn’t long before she joined in his laughter. When they heard the garda car approaching, Felicity and Jack watched until the garda knocked on the door of the house. Only then they started back towards home, assured that the truck would be recognised.

Celebration
Sure enough, Jack’s Da Trevor had been delighted to get his ice cream truck back. He had been thankful to Auntie Sheila and Felicity for helping Jack when the truck was first stolen, and insisted on going out for a meal to celebrate its swift return.

The group found themselves in The Laurels, food in front of them, laughter and drinks flowing. Auntie Sheila was discussing the upcoming festival over the weekend with Jack’s mother, and Trevor was telling Jack the story of how he first brought his ice cream truck for what must be the millionth time.

Felicity found herself watching on with a content feeling. Not much better than a full stomach and good company.

As she was looking around the bar lazily, the girl paused. On the wall there was a framed Killarney Advertiser clipping. She got up and wandered over to for a better look.

There was an old man sitting at the bar underneath the clipping, a pint in hand. “You see the group that went up Carrauntoohil for charity last month? The lady in the middle, the one in yellow, she’s the daughter of the fella behind the bar.”

Depicted next to the article was in fact a group photograph full of people. ‘Walking Society Supports Charity atop Our Tallest Peak’ was splayed across the paper in bold lettering.

“Hm .. I’ve never seen it, Carrauntoohil.”

The man barked a laugh. “Course you have! You’re looking at the ‘Reeks all the time, aren’t ya lass? Nearly everything over the lake are the Reeks.”

Felicity turned towards him fully. “People go up it often then?”

The old man laughed again. “Nearly every day I’d wager. People go up in the sun and the rain, even when they shouldn’t. You know …” he leaned in closer as if to share a secret, “people die, up on that there mountain, every year. You gotta respect the mountains. They were here before we were, and they’ll be here long after we’re gone.” He coughed, and took a sip of his pint.

They spoke idly about the good food and the live musicians that were setting up. As the first notes of music began to waft on the air, Felicity bid the old man farewell and returned to her party.

Auntie Sheila moved over to free up Felicity’s seat again as she returned. “You met Seamus then?” she giggled, tipsy. “ He’s a dote, no one sweeter, I swear. You know, he’s been a regular in this bar ever since your mother and I were your age. Hasn’t changed a bit.” She hiccupped, and both Sheila and Jack’s mother started giggling.

Felicity ignored the women, now leaning on each other and saying things in funny voices whilst Trevor looked on with a smile on his face.

“Jack?” she asked conspiratorially. He turned to her, humming to show she had his attention. “Do you like mountains?”

Tune in next week to see what happens next

Continue Reading

Last News

Sport