Some of the biggest financial moments in life happen when money or property changes hands. Selling shares or a holiday home, passing something on to your children, or receiving an inheritance from someone you love can all come with a tax bill attached.
Budget 2027 makes that bill a little smaller. Capital Gains Tax is coming down for the first time in years, and the tax-free amounts you can receive in gifts and inheritances are going up.
Whether you're planning a sale, thinking about helping family, or expecting to inherit, here's what's changed. As always, the team at Gilheany & co is on hand if you'd like to talk through your own plans.
Selling: Capital Gains Tax drops to 31%
The standard rate of Capital Gains Tax is being cut from 33% to 31%. The Government's aim is to reward people who take a risk, build a business or invest, and free up money for reinvestment.
CGT applies when you sell or give away something that has gone up in value, such as shares, an investment property, a holiday home or a stake in a business. Your family home is generally exempt, and everyone still gets the first €1,270 of gains each year tax-free.
In plain terms, every €10,000 of taxable gain now costs €200 less in tax. On a €100,000 gain, that's around €2,000 back in your pocket.
If you're selling a business, Revised Entrepreneur Relief and its 10% rate on qualifying gains is still there. The lower standard rate helps with any gains that fall outside that relief.
Gifting and inheriting: higher tax-free thresholds
The amount you can receive in gifts and inheritances before any tax is due depends on your relationship to the person giving it. All three thresholds are going up, for the first time since 2024.
|
Group |
Who it covers |
Before |
Now |
Most you could save |
|---|---|---|---|---|
|
A |
Sons and daughters receiving from a parent |
€400,000 |
€420,000 |
€6,600 |
|
B |
Brothers, sisters, nieces, nephews, grandchildren and grandparents |
€40,000 |
€44,000 |
€1,320 |
|
C |
Everyone else |
€20,000 |
€22,000 |
€660 |
The savings in the last column apply if you'd already have gone over the old threshold, and are worked out at the current 33% rate.
A few basics are worth remembering. Each threshold is a lifetime limit covering everything you've received from people in that group, and anything passing between spouses or civil partners is completely tax-free. On top of that, anyone can give you up to €3,000 a year without it counting towards your threshold at all.
Planning ahead
- Check the timing. The Budget documents and Finance Bill will confirm exactly when the new rate and thresholds apply, so if you're about to sell something or make a gift, talk to us first.
- Keep your paperwork. What you paid for an asset, plus the cost of any improvements, can reduce your taxable gain, so hold on to those receipts.
- Know your deadlines. CGT on gains made between January and November is due by 15 December, and on December gains by 31 January.
- Returns can still be needed. Once a gift or inheritance takes you over 80% of your threshold, you'll need to file a return, even if there's no tax to pay.
Let's talk it through
Decisions about selling, gifting and inheriting are often about family as much as money, and a little planning can make a real difference to how much you keep. If you've something coming up, or you'd just like to understand where you stand, the team at Gilheany & co would be glad to help.
