Everyone accepts that income tax has to be paid.  However many individuals forget that if they sell something or more subtly if they gift an asset to a connected party that capital gains will need to be paid.

Find out some of the answers to your capital gains tax questions below.Do I have to pay Capital Gains Tax (CGT) when I sell my home in Ireland? The sale of your home (PPR – Principal Private Residence) will not be subject to CGT if the house (including ground of up to one acre only) has been occupied as your sole or main residence throughout your entire period of ownership. If this was the case then you will be exempt from Capital Gains Tax (CGT) on the sale. If you rented your home for a period the CGT relief will be restricted.

Do I have to pay Capital Gains Tax (CGT) if I gift a site to one of my children?

The transfer of a site to a child is exempt from CGT provided the site is for the construction of the child’s Principal Private Residence, that it is less than one acre in size, and that the market value of the site does not exceed €500,000. A parent can transfer one site to each child for the purpose of the exemption.
A claw-back of this relief occurs if the child subsequently disposes of the site without having occupied the Principal Private Residence built on it for at least three years. In this case the capital gain which would have accrued to the parent on the initial transfer, will then accrue to the child.

Are there any other instances when Capital Gains Tax does not have to be paid?

If you buy a home for a dependent relative (this would be a relative that was unable to look after themselves, a widowed mother etc) then any gain you make on the sale of the property in the future would be free of tax. Criteria applies which should be studied carefully.
If you give your business (including your farm) to a member of your family on retirement, there will be no capital gains tax liability either. This is known as “retirement relief.” Limits apply here which should be studied carefully and professional advice obtained.
Further reliefs from Capital Gains Tax are outlined here

If you have any questions on these or other Capital Gains Tax queries please email caroline@charlespcrowley.com