You might make a loss when you dispose of an asset. This is known as an ‘allowable loss’ if a gain on the same transaction would be chargeable.You can deduct an allowable loss from any chargeable gains you make in the same tax year. This can include losses on the disposal of foreign property.
A loss on the disposal of development land can only be set against a gain on the disposal of development land.
Note
You might not have any chargeable gains in the same tax year you have made a loss. In this case, you will not have to include the loss in a return for that tax year.
Allowable losses that exceed the chargeable gain
You might have losses that you cannot use because:
- they are more than gains made by you in the same tax year
- you did not make any gains in the same tax year.
Carry forward capital losses
You will be able to carry forward the losses. This means you can use them against capital gain you make in later years.You need to include the carried-forward loss in your calculation of CGT for the later year. You also enter the carried-forward loss on the CGT return form for the later year.
Transfer capital losses to spouse or civil partner
You can use the balance against your spouse or civil partner’s gains.
You, and your spouse or civil partner, can make an application that this should not apply. This application must be made on or before 1 April in the following year. Send the request:
- through MyEnquiries in myAccountor Revenue Online Service (ROS)
- in writing to your Revenue office.
Special provisions for capital losses following a death
Losses cannot be set against gains for earlier years except where those losses are made in the year of death.
In the year a person dies, losses made by them might not be able to be set against gains in the same year. These losses can be deducted from the gains of the previous three years.
- Example 1
John sold a house in 2017 making a loss of €15,000.
In the same year he made a gain of €16,000 on the sale of a painting.
Calculation of John's chargeable gain Description Value Chargeable gain on the sale of the painting
€16,000
Loss on the sale of house
€15,000
Net chargeable gain
€1,000
John has no CGT liability as his gain is less than the personal exemption of €1,270. He files his CGT return form by 31 October 2018.
- Example 2
Adam sold a house in 2018 making a loss of €30,000. In the same year he made a gain of €10,000 on the sale of a painting.
Adam’s wife, Julie, made a gain of €5,000 on the sale of jewellery in 2018.
Calculation of Adam's chargeable gain Description Value Chargeable gain on the sale of the painting
€10,000
Loss on the sale of the house
€30,000
Net loss
€20,000
Spouse’s chargeable gain on the sale of jewellery
€5,000
Loss available for carry forward to a future tax year
€15,000
Adam and Julie do not have a CGT payment. Their return form needs to be filed by 31 October 2019.
Next: Selling or disposing of shares
Published: 28 January 2022 Please rate how useful this page was to you Print this page
- Related topics
- Further guidance
- Part 19-02-05
- Part 19-02-05ARestriction on Capital Losses, s546A TCA 1997
- Part 19-03-09Death (S-573)
Allowable losses (S-546)
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- Part 19-02-05ARestriction on Capital Losses, s546A TCA 1997