If you’ve already made or about to make a disposal of a capital asset (e.g. certain shares, an investment property, a business, etc.) anytime between 1st January and 30th November 2014 you will be obliged to pay your Capital Gains Tax by 15th December 2014.
If you decide to wait and dispose of your asset between 1st December and 31st December 2014 then your payment will be due by 31st January 2015.
What happens if you miss these deadlines?
Interest of 0.0219% per day will be applied to all late payments of Capital Gains Tax.
What happens if you make a gain in the first part of the year and a loss in the second part?
Even if you’ve made an overall loss for the year, you will be obliged to pay the Capital Gains Tax arising on any gain you’ve made in the first part of 2014 by the specific payment date being 15th December 2014.
You can then submit your claim for a tax refund in January 2015 if a loss arises in the second part of the year.
Any tax saving tips?
Plan the timing of your disposals so that capital gains and capital losses arise in the same period thereby enabling you to offset the losses against the gains and effectively reduce any potential tax liability.
This can be very useful from a cash flow point of view.
What about filing obligations?
You must include details of all your capital acquisitions and/or disposals made in 2013 in your 2013 Income Tax Return.
This Return must be filed with Revenue by 31st October 2014.
There is an extension to 13th November 2014 if you are using the Revenue Online System (ROS).
What happens to individuals who are not obliged to file an Income Tax Return?
You may file a CG1 Form which can be downloaded from the Irish Revenue website www.revenue.ie
As with the Income Tax Return, the due date for filing is 31st October 2014.
Please be aware, there is no facility to file this Form online which means the 13th November 2014 extension does not apply to the CG1 Form.
Are there any penalties for late filing?
If you are late filing your Tax Return but manage to do before 31st December 2014 there will be a 5% surcharge of the amount of tax payable up to a maximum of €12,695.00.
If you file your Return after 31st December 2014 a 10% surcharge will be levied up to a maximum amount of €63,485.00.
It is essential that all Tax Advisers and Accountants make their clients aware of the tax filing and payment requirements as well as the potential penalties that apply in cases of non-compliance.