Increase in Capital Gains Tax threshold for Residential Properties

Capital Gains Tax is payable on any gain made on the disposal of certain property.
 
The Finance Act 2015, which came into effect on 1st January 2016, increased the Capital Gains Tax (CGT) threshold to €1,000,000 in relation to disposals of residential property which is defined as:-
 
“including any building or part of a building used or suitable for use as a dwelling and any out office, yard, garden or other land appurtenant to or usually enjoyed with that building or part of a building.”
 
The current CGT threshold for the requirement of a clearance certificate of €500,000 remains in place, as before, for disposals of all other Irish land and buildings (including commercial property).
 
Prior to this all sales in excess of €500,000 required a Clearance Certificate from the Revenue Commissioners. The effect of this amendment is that a Clearance Certificate from the Revenue Commissioners is only required for residential property disposals in excess of €1 million.