Taxes Consolidation Act 1997 section 546

Allowable losses

Section 546 sets out the rules for determining whether a loss on the disposal of an asset is an allowable loss for capital gains tax purposes, and how such losses are relieved.

• A loss is only allowable if a gain on the same disposal would have been a chargeable gain, and it is computed in the same way as a chargeable gain.
• A person who is neither resident nor ordinarily resident in the State may only claim losses on disposals of Irish land, minerals, exploration rights or trade assets of a branch in the State.
• An allowable loss may not be carried back to an earlier year of assessment, except for a terminal loss in the year of death which may be carried back three years.
• Where gains are chargeable at more than one CGT rate, allowable losses are set against the gains chargeable at the highest rate first, maximising the benefit to the taxpayer.