trading tax question

I

irishbaker

Registered User
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I am just looking for a bit of information if anyone can help. If i open an account with a broker in the USA to daytrade shares and lets say i trade for a year or two and maybe make or lose a few quid ,without ever transferring any money back to Ireland , am i liable to pay tax considering i wont earn any Dividend on the shares if i buy/sell the shares on the same day for a scalp and dont hold onto the shares.(in other words my account is flat at the end of every day)
is it only if i transfer money back to Ireland that i am liable to pay tax and then i presume it would be only on the profit /earnings over and above the initial deposit??

Any advice appreciated.
regards
Steve
 
The location of the funds doesn't enter into it.

If you are Irish resident you are taxable on your worldwide income and gains.
 
i understand you are liable on income and gains but would you have to declare gains on a year by year basis even if you didnt take it out of the account?and could you offset trading costs such as specific sofware costs against it?
 
irishbaker said:
i understand you are liable on income and gains but would you have to declare gains on a year by year basis even if you didnt take it out of the account?
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Yes
and could you offset trading costs such as specific sofware costs against it?
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It depends on whether it is income or gains. If it is taxed as capital gains, no.
 
Nige said:
.It depends on whether it is income or gains. If it is taxed as capital gains, no.
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Expenditure on Software costs are not tax deductible.

Income such as dividends are taxed at Income Tax rates. Dividends earned on CFD trading are taxed at CGT rates, but if constant trading occurs and more profit made from trading than your main Income, the entire moves from the CGT forum to the Income Tax Forum.

And as already pointed out it doesn't really matter whether the money is returned to Ireland or not. Fact is as you were an Irish resident Tax payer, the gains are made in your name whether brought back or not.
 
thanks for the helpfull replies , however no dividends will ever be realised as the shares would only be held for a few hours to a max of a few days (swing trading as opposed to investing). There wouldnt be a snowballs chance in hell of making more than your income :) so i guess any gains would be treated as CGT then .
 
mercman said:
Hate to sound like a pessimist, but the Revenue might choose to decide the Tax basis applicable to this kind of trading.
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+1. And I would be amazed if they don't regard income tax as the appropriate tax to apply to short term trading profits!
 
thanks again - probably more realistic than pessimistic!!, i'll prob give the revenue a ring and ask before i decide to try it.
 
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