A charge to capital gains tax, CGT, arises in respect of chargeable gains accruing on the disposal of assets. Such gains are computed in accordance with the provisions of the Capital Gains Tax Acts. The charge extends to individuals, companies and unincorporated bodies of persons. CGT has no connection with income which is the basis for income tax. The CGT liability of an individual is computed, irrespective of age, by reference to the chargeable gain on the disposal which is essentially the excess of the sale proceeds, net of incidental costs of sale, over the allowable costs of acquisition, if any, of the shares being sold. The legislation also provides that the total amount of chargeable gains arising in a tax year is arrived at after deducting any allowable losses accruing to that individual in that year together with any unused allowable losses from disposals of assets chargeable to CGT in any previous year. If there were no other chargeable gains in the year, this gain is then reduced by the annual personal exemption of €1,270. The net chargeable gain is then taxable at 20%.
As the Deputy is aware, it is not the practice to comment in the lead-up to the annual budget and Finance Bill on the intention or otherwise to make changes in taxation.