Increase in CGT clearance threshold

29/01/2016 17:06:41

The increased Capital Gains Tax (CGT) clearance threshold of €1 million was introduced under section 42 of Finance Act 2015 and came into effect on 1 January 2016.

This increased threshold applies solely in respect of disposals of residential houses / apartments, being defined as “including any building or part of a building used or suitable for use as a dwelling and any out office, yard, garden or other land appurtenant to or usually enjoyed with that building or part of a building.”

The €500,000 threshold remains in place as before for disposals of all other Irish land and buildings (including commercial property).

For more information on CGT and other taxes, see the Law Society Tax Guide 2016.