Investments and Taxes

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moondance

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I got an email from Rabo last week regarding a special offer with no entry fee in buying into an investment fund (I hope that's worded right!). I know nothing about investments but decided to invest the minimum of 100euro (and a further 100 euro every quarter) in the MLIIF World Gold Fund after reading about the different funds available. I plan on leaving that running for the next couple of years at least but just wondering how tax works on this. Do you have to pay tax every year on investments or just when you cash them in? I presume you are only taxed if you make money on it? I know I'm totally clueless!
 
I'm assuming it is either a Unit Trust or a life assurance product - do you know exactly what legal form it has? If it is one of those you will be taxed at standard rate + 3% (i.e. 23%) when you encash and only if you make a profit.

Two things to note:

No relief for losses.

Every 8 years you are charged tax as if you had encashed your whole investment.
 
moondance said:
I got an email from Rabo last week regarding a special offer with no entry fee in buying into an investment fund (I hope that's worded right!). I know nothing about investments but decided to invest the minimum of 100euro (and a further 100 euro every quarter) in the MLIIF World Gold Fund after reading about the different funds available. I plan on leaving that running for the next couple of years at least but just wondering how tax works on this. Do you have to pay tax every year on investments or just when you cash them in? I presume you are only taxed if you make money on it? I know I'm totally clueless!
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Any gains made from the buying and selling of units in RaboDirect's funds are taxed on a gross-roll up basis. This means that the funds grow free of tax until the investor decides to sell their investment. When an investor sells their investment the investor is liable to pay 23%* (standard tax rate of 20% +3 %*) on the total increase in value of the investment.We made some significant updates to the taxation information part of our website last year. You should find the following pages helpful in explaining how the funds offered on the RaboDirect platform are taxed and exactly how to complete a tax return:[broken link removed] to complete the Revenue Form 11 including a link to the Form and a screenshot of which part of the form you should completehttp://www.rabodirect.ie/investments/taxation/revenue-form/default.aspxTax Aid: in your secure online bank account you can print off a report which details the profits made on sales of units during the specified period. You can use this information in the Revenue Form 11 under Section 416 [broken link removed] FAQ's [broken link removed] trust you will find this information of use to you.RaboDirect
 
Ah so these are Offshore Funds. Nuffin' wrong with that except a bit more form filling.

Tell me, Rabo, are these subject to the 8 year deemed disposal provisions?
 
Harchibald said:
Ah so these are Offshore Funds. Nuffin' wrong with that except a bit more form filling.

Tell me, Rabo, are these subject to the 8 year deemed disposal provisions?
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Yes, Harchibald.

Please see the FAQ on the Investments - Taxation section of the site:
What happens on the eighth anniversary of the purchase date of the fund?
[broken link removed]

RaboDirect
 
any leveraged equity products with rabo at present?
if so how much leverage and presume non recourse?
thanks
 
The only investment products we currently offer are the actively managed funds.

RaboDirect
 
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