Next Saturday, 15 December, is the deadline for payment of Capital Gains Tax on disposals in the period from 1 January to 30 November 2012. If you made a Capital Gain during this period, you must pay your Capital Gains Tax liability by Saturday, or face possible interest charges for late payment.
Capital Gains Tax (CGT) normally arises on the sale of property or other assets. However a liability can also arise on other occasions when an asset changes hands, for example when an asset is gifted or exchanged for another non-cash asset.
CGT can also arise in certain other situations where a capital sum (eg insurance proceeds) is derived from an asset.
The rate of CGT for the period January-November 2012 is 30% of the Capital Gain. The increased rate of 33% announced in the recent Budget 2013 applies only to disposals after Budget Day, 5 December.
If you have a liability for January-November 2012, you must, by Saturday:
- Calculate or estimate your liability.
- Send a cheque or draft for that amount to the Collector General, FREEPOST, Francis Street, Limerick.
- Attach to your payment, a CGT payslip which includes your name, address and PPS number.
If you expect to have a liability but don’t yet know the exact amount, you should nevertheless pay your best estimate by Saturday. In order to avoid becoming liable for interest charges, I would recommend in such situations that you should consider paying a little more than your expected liability.
Therefore when you finalise your Capital Gains Tax position by filing an Income Tax Form 11 or Capital Gains Tax Form CG1 Return for 2012, Revenue will refund you the amount you have overpaid.
The Revenue.ie website includes some useful guidance on Capital Gains Tax but I recommend that you seek professional assistance if you suspect that you may have a CGT liability.