CAPITAL GAINS TAX

Rates

The standard rate in respect of disposals is determined based on the date on which the disposal was made as set out in the table below. Budget 2017 made no changes to the rates.

Disposals made:	Applicable rate
from 6 December 2012	33%
from 7 December 2011 to 5 December 2012	30%
from 8 April 2009 to 6 December 2011	25%
from 15 October 2008 to 7 April 2009	22%
​ on or before 14 October 2008 ​	20%

Entrepreneur Relief

Budget 2017 increases entrepreneur relief by reducing the rate of capital gains tax from 20% to 10%. The lifetime cap of €1,000,000 is also to be reviewed in future budgets.

Entrepreneur relief, introduced by Section 45 of Finance (No 2) Act 2013, applies from 1 January 2014 to individual entrepreneurs who:

• have made disposals of assets since 1 January 2010 on which they have paid capital gains tax
• invest at least €10,000, in the period from 1 January 2014 to 31 December 2018, in acquiring chargeable business assets that will be used in a new business and have subsequently (after a minimum period of 3 years) dispose of those chargeable business at a gain giving rise to a capital gains tax liability.

The relief is given on the tax due on any chargeable gain arising on the future disposal of the chargeable business assets after a minimum period of 3 years and amounts to the lower of:

• the full amount of capital gains tax paid on the initial disposal made since 1 January 2010 or
• 50% of the CGT payable on the disposal of the new chargeable business assets.

Bog Restoration Scheme

Under the provisions of Budget 2017, payments made under the Raised Bog Restoration Scheme will be exempt from Capital Gains tax.