Hi All,
I thought I'd summarise the tax implications of investing in each as far as I'm aware. Please correct me if there are any errors/omissions.
Shares
Capital Gains Tax is applicable at 22% on the sale of shares
There is an allowance on the first €1270 payable and you can offset stockbroking costs. Losses on shares can offset gains on your other shares. Losses can be carried forward to offset future gains. Not sure if there is any time limit on this?
Dividend Withholding Tax is applicable to dividends paid by the company. This seems to be payable at your marginal rate of tax but I'm sure from the revenue website.
Investment Funds/ETFs
An exit tax of 26% is applicable on gains when you sell out of the fund and on the 7th aniversary of buying the fund. You can't offset gains in one funds by losses in another. Each is taxable indivdually.
Distributions from the fund are taxable only at the 20% standard rate.
This probably isn't all correct so please correct where needed. I'd conclude that the tax treatment of shares is more favourable than of funds. This will particularly be the case if you have losses built up over the last couple of years, as many of us will have done. Any thoughts on this?
I thought I'd summarise the tax implications of investing in each as far as I'm aware. Please correct me if there are any errors/omissions.
Shares
Capital Gains Tax is applicable at 22% on the sale of shares
There is an allowance on the first €1270 payable and you can offset stockbroking costs. Losses on shares can offset gains on your other shares. Losses can be carried forward to offset future gains. Not sure if there is any time limit on this?
Dividend Withholding Tax is applicable to dividends paid by the company. This seems to be payable at your marginal rate of tax but I'm sure from the revenue website.
Investment Funds/ETFs
An exit tax of 26% is applicable on gains when you sell out of the fund and on the 7th aniversary of buying the fund. You can't offset gains in one funds by losses in another. Each is taxable indivdually.
Distributions from the fund are taxable only at the 20% standard rate.
This probably isn't all correct so please correct where needed. I'd conclude that the tax treatment of shares is more favourable than of funds. This will particularly be the case if you have losses built up over the last couple of years, as many of us will have done. Any thoughts on this?