Capital gains hike expected

A rise in capital gains tax on gains of €100,000 or more is expected to be on the way

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HIGHER capital gains tax (CGT) on large gains is on the cards.

Leading finance newspaper Les Echos says that among the amendments the government is poised to make to its third “corrective finance law for 2012” is a hike to CGT.

The gains, currently taxed at 19%, would be increased by 3% for those that are over €100,000 and 5% for ones over €150,000.

The increase is expected to be justified by the fact that it will balance out removing a tax on bodies managing HLMs (social housing) that was introduced by the last government.

Les Echos said the increase is expected from 2014 and should bring in some €150million in extra tax from that year.

CGT is only payable on sales of second homes, not main residences.

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