Insurance proceeds – Capital gains tax

Compensation and insurance money

Money you receive as compensation and insurance money may be treated as a disposal. You must pay CGT on it.

This is money you receive as:

1. compensation for damage or destruction of an asset
2. compensation for the forfeiture or surrender of rights
3. insurance payments because of loss, damage, depreciation or destruction of an asset
4. compensation for the use or exploitation of an asset.

You might use the money to replace or repair the asset. If you do, you may defer CGT until you eventually sell the replaced or repaired asset.

The deferral of CGT is a relief, it does not apply automatically, you can claim it:

1. through MyEnquiries in myAccount or Revenue Online Service (ROS)
2. by writing to your Revenue office.

Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie