CGT and offsetting losses from 2008/9

[KOW]

I have receipts from stockbroker and share certs from a couple of companies that died around 2008/9.
Currently want to sell some shares that have been good to me.
Never claimed or logged losses with revenue. Can I offset the losses now?

 

[Brendan Burgess]

In theory, you are supposed to claim the loss in the tax year that the company died.

However, I think that Revenue will allow the losses by concession.

Brendan

 

[Brendan Burgess]

Key Post - Getting CGT loss relief on worthless shares

Originally posted by usinvestor Earlier this year I sold some shares with a profit of nearly 6000euro. I also have shares in a US company which has filed for Chapter 11 bankruptcy. I have a contract showing the purchase price but no other paperwork since I have not sold these shares. It...

www.askaboutmoney.com

 

[T McGibney]

In theory, you are supposed to claim the loss in the tax year that the company died.

However, I think that Revenue will allow the losses by concession.

Brendan

Hi Brendan

That's not the case. There is no concession that needs to be applied for.

The OP should review their asset disposals history carefully as any gains realised in the meantime, even if insufficient to generate a CGT liability at the time, will eat into the losses carried forward.

 

[KOW]

Hi Brendan

That's not the case. There is no concession that needs to be applied for.

The OP should review their asset disposals history carefully as any gains realised in the meantime, even if insufficient to generate a CGT liability at the time, will eat into the losses carried forward.

Thanks folks.
Could you please explain "any gains realised in the meantime even if insufficient to generate a CGT liability at the time will eat into losses"
I thought any gain above 1250 was taxable and any losses must be used up before using 1250 allowance.

 

[T McGibney]

Thanks folks.
Could you please explain "any gains realised in the meantime even if insufficient to generate a CGT liability at the time will eat into losses"

Not much explaining to do. If you've made any gains in the meantime, you must offset these first against the loss you're now carrying forward.

 

[Corola]

For example:

Year	Gain/Loss	CGT liability	Loss carried forward
2008	-6000	0	-6000
2009	1250	0	-4750
2010	1250	0	-3500
2011	1250	0	-2250
2012	1250	0	-1000
2013	1250	0	0

1250 each year is less than the CGT allowance of 1270, but it eats up the original 6000 loss.

 

[KOW]

For example:

Year	Gain/Loss	CGT liability	Loss carried forward
2008	-6000	0	-6000
2009	1250	0	-4750
2010	1250	0	-3500
2011	1250	0	-2250
2012	1250	0	-1000
2013	1250	0	0

1250 each year is less than the CGT allowance of 1270, but it eats up the original 6000 loss.

Thanks folks. Even I can understand replies