The flat rate of 20% applicable to Capital Gains has increased the frequency of Capital transactions. Therefore, Capital Gains Tax planning has become more important in the past few years.
Payment dates have been accelerated for Capital Gains Tax and various tax-relief's that were previously introduced to stimulate investment in various industry sectors and to support social infrastructure and family enterprises were abolished.
The date of the relevant contract for sale has now become more important than ever in relation to the ultimate timing of the payment of Capital Gains Tax.
Further, the restriction of indexation relief in the future will increase the effective rate of tax applicable to relevant disposals while still retaining the appearance of a low rate of 20%, which of course, the Minister has the discretion to increase at any point, should he so wish.
We can provide expert advice if your are considering entering into any transaction which may trigger Capital Gains Tax from computing potential liabilities to suggesting alternative approaches.