Capital Gains Tax in Ireland for Business Owners

Declan owns 40% of a joinery company in Wexford. His co-director has offered to buy him out, and they have agreed a price. In the same month, the company plans to sell a storage unit it no longer needs. Declan wants to know two things before anyone signs: how much tax is due, and who pays it.

This guide explains capital gains tax in Ireland for business owners selling shares or business assets. One point first: the standard rate fell from 33% to 31% for disposals on or after 7 October 2026, so the date of the sale matters.

How capital gains tax in Ireland applies to a business sale

You make a disposal when you sell, give away or exchange an asset. Shares in your company, a premises, goodwill and equipment are all assets for CGT in Ireland.

The key figures for individuals paying capital gains tax in Ireland:

• Rate: 31% for most disposals on or after 7 October 2026, and 33% for disposals before that date. Gains on development land stay at 33%.
• Annual exemption: the first €1,270 of gains each year is tax-free. It cannot be transferred between spouses or civil partners.

You or the company: who pays the tax

This is where business owners often get confused.

When you sell your shares, you pay CGT personally. That is Declan's position: capital gains tax on shares is his own liability, not the company's.

When the company sells an asset, the company pays, through corporation tax. The gain is adjusted so that, at the corporation tax rate, the result equals what CGT would have been. Gains on development land are the exception and follow full CGT rules. The company reports the gain on its CT1 for that accounting period. Our annual accounts and CT1 service covers this, and our guide to small company corporation tax explains the wider picture.

If you are a sole trader, business assets belong to you, so you pay CGT on them personally.

Working out the gain on shares and assets

The basic sum is:

Sale price, less what you paid, less allowable costs, equals the gain.

Allowable costs include the solicitor's and valuer's fees on buying and selling, and money spent improving the asset. Deduct any allowable losses too.

Here is Declan's sale in round numbers:

At the old 33% rate the same gain would cost €63,601, so the timing of the sale makes a real difference. This is before any relief.

The company's storage unit works the same way. If it cost €150,000 and sells for €210,000, the €60,000 gain is taxed through the company's corporation tax, giving the same €18,600 that CGT at 31% would.

Watch the price between connected people. Revenue treats a sale between connected persons as not at arm's length and uses market value instead of the agreed price. Relatives and business partners are connected, and so are two or more people acting together to control a company. So a sale to a co-director at a friendly price can be taxed at full market value.

CGT payment dates and the return

The CGT payment dates in Ireland depend on when you sell:

• Sales from 1 January to 30 November: pay by 15 December of the same year.
• Sales in December: pay by 31 January of the next year.

You report the gain on a return by 31 October of the following year, even if no tax is due. If Declan sells in March, he pays by 15 December and reports the sale by 31 October the next year.

Which form? As a director who files a Form 11, Declan reports the gain there. The CG1 form is for people who do not usually file an annual return. Our Form 11 filing service handles this, and our guide to Form 11 for directors explains who must file.

As for how to pay capital gains tax in Ireland: pay through ROS or myAccount, registering for CGT first if you are not already. If you are exempt from filing online, you can pay with a CGT payslip.

Records to keep before you sell

Your gain is only as accurate as your paperwork. Before Declan agrees the sale, he gathers:

• proof of what he paid for his shares and when,
• the company's share register,
• the valuation behind the agreed price,
• solicitor's and agent's invoices for both the purchase and sale, and
• invoices for any improvements (for the company's storage unit).

For certain assets sold for over €500,000 (over €1 million for a house or apartment), the buyer must withhold 15% of the price unless you give them a CG50A clearance certificate. Ask your adviser early whether your sale is covered.

Revenue expects business records to be kept for six years. Our guide to books of account sets out what to keep.

Reliefs to ask about early

Two reliefs can reduce the tax on selling a business: Revised Entrepreneur Relief and Retirement Relief, which applies to people over 55. Both depend on conditions such as how long you have owned and worked in the business. They can change the numbers a great deal, so get advice before you agree how the sale is structured, not after.

Frequently Asked Questions

Plan the numbers before you sign

Capital gains tax on shares and business assets is easier to plan before a sale than to fix after it. If you are setting up a new venture with the proceeds, the Formation Calculator shows what is involved. To talk through your sale with our Wexford team, click here.