Tax advice for you and your family
Gifts and inheritances can be received tax-free up to a certain amount. The tax-free amount, or threshold, varies depending on your relationship to the person giving the benefit.
There are also a number of exemptions and reliefs that depend on the type of the gift or inheritance. We can help determine whether or not you are eligible. We can advise on the exemptions and reliefs.
Capital Gains Tax (CGT) is a tax charged on the capital gain (profit) made on the disposal of any asset. It is payable by the person making the disposal. The gain/profit (the difference between the price you paid for the asset and the price you sold it for) is considered taxable gain.
There is no Capital Gains Tax on assets passed on death. When the person who acquired the assets comes to dispose of them they are treated as if they had been acquired at their market value on the date of the death.
A gift of an asset is considered a deemed disposal and CGT applies to the market value of the gift.
The level of your non PAYE income will determine the type of tax return you must submit to Revenue. Tax returns must be submitted by both residents and non-residents with income in Ireland.
Because most taxes in Ireland are based on self-assessment, individual taxpayers are liable to report, calculate and pay any tax due within prescribed time limits. Preliminary tax is an estimate of the income tax you will be charged in the current tax year and includes PRSI and USC. To avoid interest charges you must pay 90 per cent of your estimated liability for the current year or 100 per cent of your previous year’s tax bill. Tax forms can be obtained from tax offices in Ireland and on the Revenue Commissioner's website at http://www.revenue.ie.
Tax credits reduce the amount of tax you pay. A list of all the tax credits can be found on the Revenue website at http://www.revenue.ie
Your tax residence status depends on the number of days you are in Ireland during a tax year. You are resident in Ireland for tax purposes if you are in Ireland for a total of 183 days or more in a tax year or 280 days or more in a tax year plus the previous tax year taken together.
If you are tax resident in Ireland for a tax year, you pay Irish tax on your worldwide income and any worldwide gains you make in that year. If you work and pay tax abroad, you may be entitled to relief under a Double Taxation Agreement.
You can be resident, ordinarily resident, domiciled or any combination of the three. If you are resident, ordinarily resident and domiciled in Ireland you pay Irish tax on your worldwide income. If you are not domiciled in Ireland you pay tax on foreign income remitted to Ireland. Domicile is generally country of birth.
It is very important that you check the number of PRSI contributions you have made towards the Contributory Old Age Pension (State Pension). Will you be eligible for a full state pension (COAP) when you reach 66 years of age?
Social Insurance Contribution Statements are now available online at www.mywelfare.ie. Please log on to this site to receive further instruction. A person who is not in a position to use the online facility to request a statement can contact the Customer Service Team for assistance on 01-4715898 OR LoCall 1890 690 690.
All dividend income received must be declared on your tax return.
You declare the gross amount on all dividends and you can claim a tax credit for any tax paid.
The gain from the sale of shares is liable to CGT @ 33%. If you incur a loss on the sale, you should declare the loss on your tax return as it can be carried forward to offset future gains.
If you receive bonus shares, share options or restricted stock units from your employer, you may be liable to income tax and CGT on any subsequent disposal.
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