CGT tax on small share sales.

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mercedes1

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I have dabbled in shares for the past 5 or six years. Usually , I sell small amounts to try and keep under the cgt allowance, (not quite sure what it is ) However in recent times last year and year before I would have made over the allowance as I was buying a house. I have also sustained losses in the past , who hasn't (the famous eircom springs to mind)
I do not have an accountant as I am a PAYE worker. Any suggestions about how I can ensure that I don't get a tax bill ? I have thought about hiring an accountant but I hear that they charge quite a lot.
 
If you have a tax bill, an accountant won't be able to make it disappear like a magician. Past losses are unlikely to be much use to you as these are automatically swallowed up by subsequent gains, regardless of whether the subsequent gains are under or over the annual CGT thresholds. Unless you have made substantial capital gains in recent years, it is hardly necessary for you to hire an accountant. There is a guide to Capital Gains Tax on the revenue.ie website - google it if necessary. Basically what you need to do is calculate your total gains each year and subtract original purchase costs (including indexation if applicable and transaction costs).
 
mercedes1 said:
II sell small amounts to try and keep under the cgt allowance, (not quite sure what it is )
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How on earth do you know what to sell so? The annual personal CGT allowance is €1,270 by the way.

As above you need to trawl back through all of your trades and figure out what gains and losses you made and when and then prepare returns for the relavant periods. It's possible that you could be liable for interest and penalties but if you come clean and pay whatever's due Revenue may be lenient.

If you earned dividends from any of the shares then these would have been assessable for income tax (and possibly paid net of dividend witholding tax of 20% for which you can get a tax credit).

If in doubt get independent, professional advice.
 
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