EU government bonds

J

jmccart

New Member
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Hi all,

Can anyone definitely tell me whether EU government bonds are subject to capital gains tax. I am aware the interest paid will be treated as income and taxed accordingly. I have found reference that Irish government bonds are not subject to CGT but can't find clear guidance on EU government bonds. Thanks in advance.
 
Yes they are subject to CGT, just like all other assets - the only other exception are those assets subject to Exit tax (life insurance funds, Etfs)
 
The default position is that all types of assets are chargeable to CGT , unless specifically exempted. Section 607 TCA 1997 provides the exemption for Irish government bonds:

(1)The following shall not be chargeable assets—

(a)securities (including savings certificates) issued under the authority of the Minister for Finance,

(b)stock issued by—

(i)a local authority, or

(ii)a harbour authority mentioned in the First Schedule to the Harbours Act, 1946,

(c)land bonds issued under the Land Purchase Acts,

(d)debentures, debenture stock, certificates of charge or other forms of security issued by the Electricity Supply Board, Board Gáis Éireann, the company established pursuant to section 5 of the Gas Regulation Act 2013, Irish Water, Radio Telefís Éireann, Córas Iompair Éireann, , Bord na Móna, or Dublin Airport Authority,

(e)securities issued by the Housing Finance Agency under section 10 of the Housing Finance Agency Act, 1981,

(f)securities issued by a body designated under section 4(1) of the Securitisation (Proceeds of Certain Mortgages) Act, 1995,

(g)securities issued in the State, with the approval of the Minister for Finance, by the European Community, the European Coal and Steel Community, the International Bank for Reconstruction and Development, the European Atomic Energy Community or the European Investment Bank, and

(h)securities issued by An Post and guaranteed by the Minister for Finance.
 
Thanks guys. So I take it that just Irish government bonds are CGT free and not EU ones. Thanks.
 
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