CGT Preliminary Tax in Ireland: December 15 Deadline Guide
If you sell a property in Ireland, you may have to pay Capital Gains Tax (CGT) in two stages. The first and most urgent is CGT Preliminary Tax, which is due on 15 December, depending on when the sale occurs. The second is the CG1 tax return, due the following year.
This guide explains who must pay CGT Preliminary Tax, how to calculate it, how to pay it, and what happens if you miss the deadline. These rules apply to both Irish residents and non-residents selling Irish property.
What Is CGT Preliminary Tax?
CGT Preliminary Tax is an advance payment of CGT made in the same tax year as the disposal.
You must pay the CGT on the gain (less allowable losses) by the required date.
Revenue divides CGT payments into two cycles:
- Sale between 1 January – 30 November → CGT due 15 December
- Sale between 1 December – 31 December → CGT due 31 January (following year)
The full CG1 return is then filed by 31 October of the next year.
Who Needs to Pay CGT Preliminary Tax?
You must pay CGT Preliminary Tax if you sold any of the following:
Investment property
Rental property
Second home or holiday home
Land or development sites
Inherited property that is not exempt
Irish property as a non-resident seller
CGT applies whether the sale is in your name, held jointly, or handled through an agent. Property used as your Principal Private Residence may qualify for relief, but you must confirm that it meets Revenue’s criteria.
Key Deadline: When Is CGT Preliminary Tax Due?
Sale completed 1 January – 30 November
CGT due: 15 December (same year)
Sale completed 1 December – 31 December
CGT due: 31 January (following year)
How to Calculate CGT Preliminary Tax (Step-by-Step)
CGT is applied to the gain, not the sale price.
Step 1: Sale price
Amount received or to be received.
Step 2: Deduct allowable costs
Allowable deductions include:
- Original purchase price
- Stamp duty
- Legal fees (purchase & sale)
- Estate agent / auctioneer fees
- Architect / surveyor fees
- Capital improvements
Not allowable: painting, repairs, appliances, interior décor, maintenance.
Step 3: Apply any reliefs
- Principal Private Residence relief
- Transfers between spouses
- Capital losses
- Annual CGT exemption of €1,270
Step 4: Chargeable gain
Sale proceeds minus allowable costs minus reliefs.
Step 5: Apply CGT rate
33% on the chargeable gain.
CGT Calculation Example
Item | Amount (€) |
Property sale price | 450,000 |
Purchase price | (300,000) |
Stamp duty (updated) | (4,500) |
Legal fees (purchase & sale) | (4,000) |
Estate agent fees | (6,000) |
Capital improvements | (20,000) |
Gain before exemption | 115,500 |
Less: Annual CGT exemption | (1,270) |
Chargeable gain | 114,230 |
CGT @ 33% | 37,696 (rounded) |
€37,696 would typically be paid as Preliminary CGT on 15 December, unless losses reduce this further.
How to Pay CGT Preliminary Tax
Revenue offers several ways to pay CGT Preliminary Tax.
Option 1: ROS (self-employed or agent)
- Log into ROS
- Payments & Refunds
- Select CGT
- Enter disposal details
- Pay
- Save receipt
Option 2: myAccount (PAYE taxpayers)
- Log into myAccount
- Payments
- Select CGT
- Enter details
- Pay
Option 3: Non-residents
May require:
- An Irish tax agent
- A CG50 clearance certificate
- Payment through ROS
Where CGT is not paid or secured, 15% of the sale proceeds must be withheld by the purchaser (S980 TCA 1997).
Common Mistakes with CGT Preliminary Tax
Many sellers experience issues because CGT rules are often misunderstood. Here are the most common mistakes:
- Thinking the solicitor pays the CGT
- Forgetting the 15 December deadline
- Claiming repairs as capital improvements
- Not keeping improvement receipts
- Not using losses correctly
- Believing non-residents are exempt
- Not applying the €1,270 CGT exemption
These mistakes can lead to higher tax bills or delays in the sale process.
What Happens If You Miss the 15 December Deadline?
1. Daily interest
CGT interest is charged daily until paid.
2. Penalties
Additional penalties may apply depending on the level of delay.
3. Non-resident issues
Missing the payment can affect or delay CG50 clearance.
4. Audit risk
Disposal cases are closely examined by Revenue.
CGT Preliminary Tax vs Final CGT Return (CG1)
Stage | When | What Happens |
CGT preliminary payment | 15 December or 31 January | Full CGT based on gain is paid |
CG1 filing | 31 October (following year) | Gain reported; overpayments refunded |
Non-residents
May need:
- A CG50
- Irish tax agent
- Additional documentation
If you need support with CGT compliance as a resident or non-resident seller, you can learn more about our CGT Services here.
Need Help Calculating Your CGT Before 15 December?
Deadlines come quickly, and errors can be costly.
Richard OShea Consultancy can assist with:
- CGT calculations
- Reliefs and allowable deductions
- Non-resident compliance
- CG50 applications
- Filing the CG1 return
Contact us for fast, accurate CGT support.
This article is intended for informational purposes only and should not be considered a replacement for professional advice. The author(s) disclaim any liability for actions taken or not taken based on the content of this document. It is recommended to seek tailored advice before making any decisions related to the topics discussed in this article.
