Overview Companies are generally subject to corporation tax on their capital gains as well as their income. In contrast, individuals are subject separately to capital gains tax on capital gains and income tax in income. Trading losses of a company may be thereby offset against capital gains in the same period. The accounting period is treated as period of assessment for capital gains tax for […]
Shares Shaves give ownership rights in respect of companies. Shares quoted on a stock exchange are usually readily saleable and substantial information on the company is published on an ongoing basis. Shares in a private company do not have a ready market. Indeed the definition of a private company requires that there are substantial restrictions on sale. See the section on company law and chapters […]
Reorganistions Capital gains tax issues are o important in the context of reorganisation of companies. Stamp duty issues also arise. A reorganisation may involve an amalgamation of companies or partition. Tax legislation does not have a readymade relief for partition of businesses between shareholders. Tax legislation allows relief for reorganisations which do not involve a change in the overall shareholders. Reliefs There are reliefs from […]
Corporate Groups Capital gains tax reliefs exist to cater for the fact that businesses are often organised in groups of companies. A group of companies under Company Law comprises a holding company and one or more layers of subsidiaries Companies are in the same group when one is a parent or subsidiary of another (either directly or indirectly )or both are subsidiaries of another company). Having […]
Original Charge There has been a CGT charge when a company goes non-resident in relation to assets which are thereby outside the scope of Irish CGT for many years. There have been important exceptions. Cessation of residence in the State will take place when it becomes resident in another country rather than ceases to exist. Where a company ceases to be resident in the State, […]
Qualifying Individuals There is a reduced rate of capital gains tax on disposal of chargeable business assets or shares by a qualifying individual. The purpose is to incentivise entrepreneurs. Entrepreneurs relief provides a reduced capital gains tax of 10% applicable to disposals made after 2016.there is a lifetime limit of €1 million per person. All disposals after 1 January 2016 are taken into account for […]