At Wall Tax Consultants we believe that good timing is one of the most valuable tools in tax planning, and nowhere is that more true than with Capital Gains Tax. If you have sold or given away an asset this year, or are planning to before the end of 2026, the next few weeks matter. Whether it is shares in a company, a business premises, an investment property or part of your business itself, understanding the rules and deadlines now can help you avoid penalties and potentially reduce the tax you pay.
Capital Gains Tax applies when you dispose of an asset and make a gain, broadly the difference between what you paid for it and what you received. The standard rate is 33%, which means even a moderate gain can create a significant tax bill. For business owners, disposals can arise in many ways, including selling shares, transferring property, passing assets to family members or restructuring a business. Here are five points every Irish business owner should understand before 15 December.
1. Know the Deadlines and When a Disposal Happens
Capital Gains Tax has its own payment calendar, separate from the income tax Pay and File deadline. Tax on gains made on disposals between 1 January and 30 November must be paid by 15 December of the same year. Tax on disposals made in December is due by 31 January of the following year. The disposal must also be reported on your tax return, which is due by 31 October of the following year.
Crucially, the date of disposal is generally the date of an unconditional contract, not the date the sale completes or the money arrives. A sale agreed in late November that completes in January may still fall into the earlier payment period. If you are close to the 30 November cut-off, the timing of the contract can determine when your tax is due and give you valuable time to manage your cash flow.
2. Make Use of Your Annual Exemption and Losses
Each individual is entitled to an annual exemption on the first €1,270 of chargeable gains. While modest, it is lost if not used in the year, and it applies to each person separately. Where assets are jointly owned by spouses or civil partners, both may be able to use their own exemption.
Losses can be even more valuable. Capital losses made in the same year can be offset against gains, and unused losses can generally be carried forward to future years. If you hold assets that have fallen in value, selling them before the year end could crystallise a loss that reduces the tax on a gain made elsewhere. Be aware that anti-avoidance rules can restrict losses where the same shares are sold and bought back within a short period, and losses on disposals to connected persons can be limited.
3. Check Whether Entrepreneur Relief or Retirement Relief Applies
Business owners selling or passing on a business may be entitled to valuable reliefs. Entrepreneur Relief can reduce the rate of Capital Gains Tax to 10% on gains from qualifying business assets, up to a lifetime limit. To qualify, conditions must be met around how long you have owned the business, the size of your shareholding and the time you have spent working in it.
Retirement Relief can reduce or eliminate the tax payable when individuals aged 55 or over dispose of qualifying business or farming assets, whether to a family member or a third party. The limits depend on your age and who you are transferring to, and these rules have changed in recent years. Both reliefs have strict conditions, and failing to meet just one can mean losing the relief entirely, so they should be reviewed well before any transaction takes place.
4. Remember That Gifts and Family Transfers Are Still Disposals
Many people are surprised to learn that giving an asset away can trigger Capital Gains Tax. When an asset is gifted or transferred to a connected person, such as a child or other relative, the transaction is generally treated as taking place at market value, even if no money changes hands. This means you could face a tax bill on a gain you never received in cash.
Transfers between spouses and civil partners are generally exempt, which can be useful in planning. Where a gift also gives rise to Capital Acquisitions Tax for the person receiving it, a credit may be available to reduce the overall tax payable, provided certain conditions are met. Family transfers of business assets need careful planning to make sure the right reliefs are claimed and the combined tax cost is kept to a minimum.
5. Keep Records and Claim Every Allowable Cost
The gain is not simply the sale price minus the purchase price. You can generally deduct the costs of acquiring the asset, the cost of improvements that added to its value and incidental costs such as legal fees, valuation fees and estate agent charges. For assets held for many years, adjustments may also apply to the original cost.
To claim these deductions, you need evidence. Keep purchase documents, invoices for improvement works and records of selling costs. It is also important to remember that a disposal must usually be reported even where reliefs or the annual exemption mean little or no tax is due, as reliefs often need to be claimed on your return.
Plan Before the Deadline, Not After
Capital Gains Tax is one of the areas where advance planning can have the biggest impact. Once a disposal has taken place, the options for reducing the tax are far more limited. If you have made a gain this year, or are considering a sale or transfer before the end of 2026, now is the time to review your position, confirm your payment deadline and make sure every available relief and deduction is claimed.
At Wall Tax Consultants, we help business owners plan disposals, claim the reliefs available to them and meet their Capital Gains Tax deadlines with confidence.
If you would like to discuss your business, contact us on or email joseph@mjwtax.ie or visit mjwtax.ie.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.