Revenue Guides Revenue Forms Rates: from 8 April 2009 to 6 December 2011 - 25% from 7 December 2011 to 5 December 2012 - 30% from 6 December 2012 - 33% Dates A return should be made by the 31 October in the year following the disposal. CGT Payment dates Disposals between 1 January and 30 Novermber : pay by 15 December Disposals in December : pay by 31 January of following year Use the payment forms to make the payment You still must make a return by 31 October of the following year – use CG1 for this. Personal exemption Individuals have a personal exemption of €1,270 each year Calculating the chargeable gain The sales proceeds includes the net proceeds after paying broker fees. The cost is the total cost including stamp duty and brokers’ fees Losses You can set losses off against your gains before calculating the taxable gain Profit on sale of shares in CRH: €4,270 Loss on sale of shares in AIB: €1,000 Chargeable Gain: €3,270 Less personal exemption: €1,270 Net Chargeable Gain: €2,000 CGT @25%: €500 Losses forward If you make a loss on the disposal of assets, you can carry these forward and set them against future gains. You must use the losses first before using your annual exemption. Unrealised losses You cannot use unrealised losses. If you have chargeable gains, you should consider selling other assets at a loss to avoid paying CGT. If you have shares of nil value, you need to claim the losses in the year you intend to use them http://www.askaboutmoney.com/showthread.php?t=7306 You cannot create artificial losses through bed and breakfast arrangements You used to be able to sell shares to create a loss and then buy them back immediately at the same price. This is no longer allowed. Check out the 4 week rule Part disposal of shares You follow the first in first out rule. Example Purchase 1,000 AIB shares at €10 in 2001 Purchase 800 at €20 in 2006 Sell 500 shares in 2009 You will be deemed to have sold 500 shares which you bought in 2001. Indexation for shares bought before 2003 Allowance used to be made for inflation by using indexation factors which you can find in CGT 2 The indexation factor for shares sold in 2009 which were bought in 2001 was 1.087 So the 1,000 shares in our example above have an allowable cost of €10,870 Rights issues To be completed Bonus issues To be completed Married couples Married couples do not have double the exemption; they have €1,270 each. A person should consider transferring shares to their spouse to avail of the €1,270 annual exemption. Married couples who are jointly assessed may set off the losses of one spouse against the gain of the other. It is better for married couples to own shares in their separate names to avail of the personal exemption. (Is this correct?) Tax planning points You should consider selling sufficient shares each year to use up your €1270 annual exemption. However, the tax saved is only €317.50 so make sure that it is not eaten up in stamp duty and stockbrokers’ charges. However, if you were planning on selling shares anyway in the new year, you would be better off selling them before the end of December instead. If you have a CGT liability, can you sell any shares or other assets at a loss to wipe it out. Unit linked funds and some ETFs are not subject to CGT on the gains. Therefore the losses on these cannot be set off against gains on other assets.