Key Post Capital Gains Tax on sale of shares

Discussion in 'Tax' started by Brendan Burgess, Sep 19, 2009.

  1. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    30,291
    When you receive a dividend from an Irish company, you will get a dividend cert as follows:

    Gross income: €100
    Dividend Withholding Tax: €20
    Net dividend: €80

    You put the €100 on your tax return and so you pay tax on that at your top rate.
    You then get a credit for the DWT of €20.

    Foreign dividends are all treated differently.

    No.

    You can set your losses and gains on directly held shares against each other.

    Unit linked funds have no right of set off against anything else.

    There is a Key Post on ETFs and no conclusion has been reached.
     
  2. Boscod

    Boscod Frequent Poster

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    18
    Brendan. In order for CGT losses to be carried forward to the next tax year, must they be declared in the tax return for year incurred?
     
  3. mandelbrot

    mandelbrot Former user

    Posts:
    2,325
    No. But if you're going to use a large capital loss that you never declared previously, don't be surprised if it's queried.
     
  4. Username2012

    Username2012 Frequent Poster

    Posts:
    58
    This might be a stupid question but I cannot seem to find the answer. If I sell some shares and make a capital gain of c. €1000 (under the annual exemption limit) - do I have to fill out forms for revenue? No interim payment would be due as no tax is due on the sale from what I see. Is it that simple?

    I do not have to file tax returns (just tell revenue of my dividend income annually)
     
  5. Joe_90

    Joe_90 Frequent Poster

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    2,014
    That's interesting how does that work?
     
  6. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    30,291
    Probably not.

    But make sure to keep a record of all your purchases and sales so that if they are queried later, you will be able to show that you were under the limit.

    Brendan
     
  7. Username2012

    Username2012 Frequent Poster

    Posts:
    58
    As a PAYE employee with net assessable non-PAYE income of less than €3,174 I can just get the income (i.e. my tiny annual dividend income) coded against my tax credits. Or, in past years, just get it done when I'm sorting my med expenses.

    Thanks for the help! Might give them a call to make sure regardless.
     
  8. Branz

    Branz Frequent Poster

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    842
    Have you been "invited" to file an e-version of the form 12 yet within the PAYE online portal?
    They are rolling this out and the Form 12 covers disposals
     
  9. TomOC

    TomOC Frequent Poster

    Posts:
    174
    Just for clarification on this. I sold shares around April this year. Is the tax return on these not due until 31 Oct 2015 and CGT due by 15th Dec 2015? OR are all these dates 2014? Thanks
     
  10. jpd

    jpd Frequent Poster

    Posts:
    1,245
    2014
     
  11. Agent 47

    Agent 47 Frequent Poster

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    87
    If I sold shares in 2014 and I am availing of my Capital Gains Allowance do I still have to do a Form 12 (I am a PAYE worker)?

    I would have a rental but would be under the 3,174 threshold. I normally do a return for the year previous in April each year.

    If I have to do a return then I presume I can only do the return based on the period from Jan 1st 2014 to Oct 31st 2014 where 2 months rent due (Nov & Dec) cannot be included? Additionally I do not yet have the interest certs from the bank as they arrive in January.
     
  12. Branz

    Branz Frequent Poster

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    842
  13. TomOC

    TomOC Frequent Poster

    Posts:
    174
    Thanks. I am a PAYE worker and never filled out any self assessment forms. Is the declaration of share profits only made next year?
    Do I pay this year via CGT 1 payslip A by 15th Dec without giving any share details. Then next year by 31 Oct I need to submit CG1 as my tax return rather than form 12?? Thanks
    Hence, given my first disposal was this year, I do not need to do anything by 31 Oct 14, but firstly a payment by 15th Dec 2014.
     
  14. TomOC

    TomOC Frequent Poster

    Posts:
    174
    I am just wondering again. Is the 31st October deadline just for 2013 tax assessments ie Form 12?
    And in relation to the shares sold this year, tax assessment due by 31 OCt 2015? And this year I pay my CGT 1 payslip A by 15th Dec 2014? Thanks
     
  15. patrickjd

    patrickjd Frequent Poster

    Posts:
    84
    gain=relief

    That CG1 form looks very convoluted. Can anyone advise me what needs to be done if my net gains at disposal is equal to my CGT relief of EUR 1,270? Has anyone here had a similar experience and if so what did you do?
     
  16. Axi

    Axi New Member

    Posts:
    1
    Hi Guys,

    So I got 12k back from shares I invested in and am confused of how much gain tax I should pay:

    Starting price

    10.35
    11.35
    8.83
    9.05


    Sell price

    26.7
    26.7
    26.7
    26.7


    Stocks

    45
    65
    173
    167

    tax price (Starting price - sell price)

    16.35
    15.35
    17.87
    17.65


    Gain Tax (Tax price and stock)

    242.79
    329.25
    1020.19
    972.69


    Total =


    2564.94

    i think it should be 2564.94 then i need to take off 1172 for the amount i don't pay on which leaves 1392.94 i am not sure if I am working it right and am scared I under paid don't want any issue with Government.
     
  17. TomOC

    TomOC Frequent Poster

    Posts:
    174
    My understanding is as follows

    Buying price

    465.75 (10.35*45)
    737.75
    1527.59
    1511.35

    Selling price

    1201.50
    1735.50
    4619.10
    4458.90


    Profit

    735.75 (1201.50- 465.75)
    997.75
    3091.51
    2947.55

    7772.56 Total

    1270 subtract exemption
    6502.56
    2145.84 33% of 6502.56

    Money due= 2145.84

    I am not sure on this and am just trying to calculate for myself at the moment. I think you calculate profit then subtract exemption and finally get 33% of that figure. In your calculation you calculated profit and deducted the 33% then subtracted the exemption.
     
  18. JudgeDread

    JudgeDread Registered User

    Posts:
    12
    I have an offer to purchase my business at the moment. Its by no means certain it will
    go through but I have started to wonder about the CGT side of things.

    I have two questions,

    1. Is there any way I can limit my exposure to CGT. As I understand it I would have until
    October to file my CGT. If I was to put the proceeds into something like a BES in the meantime
    would that remove the CGT liability?

    2. I also want to give some of the proceeds to the company staff. They do not have shares in the
    company. Am I right in thinking that if I receive the cash, I would have to pay CGT and then they
    would have to pay Gift Tax on top of that? Or can one be offset against the other?

    Thanks.
     
  19. Joe_90

    Joe_90 Frequent Poster

    Posts:
    2,014
    What does your accountant think.

    - Are you 55?
    - Are they being made redundant?
    - EIIS (BES) is an income tax deduction not CGT.
     
  20. JudgeDread

    JudgeDread Registered User

    Posts:
    12
    No, I'm a good deal less than 55 and they are not being made redundant.

    My accountant thinks we will have to pay the CGT, however, some else told me of
    some ways to at least avoid it for now, by keep it in a holding company, but of course that
    is by basically not realising the gain. Gambling that CGT rates might go down in the future.