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The Ultimate Guide to Capital Gains Tax (CGT) for New Irish Businesses

Apr 29, 2025
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Who should read this?

This article is written for new business owners that are looking for a high-level overview of Capital Gains Tax as it applies to new companies.

     Key Takeaways

  • CGT is charged at 33% on business asset gains, but Entrepreneur Relief can reduce this to 10% for qualifying business disposals up to €1 million
  • Both companies and individual shareholders may have separate CGT liabilities when assets or shares are sold at a profit
  • Key payment deadlines are 15 December for most disposals and 31 January for December disposals
  • Personal holding companies can be an effective tool to defer CGT on large business exits
  • Good record-keeping of all asset purchases, improvements, and sales is essential for CGT compliance and maximising available reliefs
a founder looking at their tax return documents
About the Author:
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Stuart Connolly is a corporate barrister in Ireland and the UK since 2012.

He spent over a decade at Ireland's top law firms including Arthur Cox & William Fry.

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Frequently Asked Questions

What is Capital Gains Tax (CGT) and how does it affect new businesses?

Capital Gains Tax (CGT) is a tax you pay when you sell or dispose of an asset that has increased in value. For new businesses, CGT applies when you sell business assets, shares in your company, or the entire business. The tax is calculated on the profit (or capital gain) you make, not on the total amount you receive. If your new business acquires assets that later increase in value, you may face a CGT liability when you sell them. Understanding CGT early in your business journey helps with long-term financial planning and may influence decisions about business structure and asset management.

When does a new business need to pay Capital Gains Tax?

A new business needs to pay Capital Gains Tax when it disposes of assets that have increased in value since acquisition. This includes selling business premises, equipment, intellectual property, or company shares. The CGT becomes due when a chargeable event occurs - typically when you sell, gift, exchange, or otherwise dispose of an asset. For new businesses, it's important to note that CGT is only payable on the profit (the capital gain), not the entire sale amount. You'll need to report these gains on your tax return for the tax year in which the disposal took place, and payment is typically due by specific deadlines - usually January 31st following the tax year end, though some payments may need to be made earlier depending on when the disposal occurred.

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