Allowable Expenses when Calculating CGT on sale of Shares

M

maho_ie

Guest
I was wondering exactly what can be deducted from your profit when selling some shares before calculating CGT. I know commision and stamp duty can be but I'm not sure if an annual account maintenance fee can and if so how you would work that. Here is an example to illustrate what I mean:

Year 2000:
Purchase 1000 shares of X at €1 = €1000
Commision is €1 and Stamp Duty is €1 (just for illustration)

Year 2006:
Sell 1000 shares of X at €5 = €5000
Commision is €1.50 (again just for illustration)

The annual account maintenance charge was €5 a year and no CGT submissions were made between 2000 - 2005.

CGT Calculation:

Sell 1000 shares of X at €5 = €5000
Minus Cost of purchase of X = €1000
Gain = €4000

Less Yearly Allowance = €1270
Less both Commisions = €2.50
Less Stamp Duty = €1
Less 6 years Maintenance = €30

Taxable Gain = 2696.50 * 20% = €539.30 CGT

I'm a little confused over deducting account maintenance. Can you just deduct it for the year that you are claiming (i.e the €5 in 2006) or can you deduct the total account maintenance accrued between CGT submissions (if you are not making a submission every year on account of no disposals).
 
maho_ie said:
I was wondering exactly what can be deducted from your profit when selling some shares before calculating CGT. I know commision and stamp duty can be but I'm not sure if an annual account maintenance fee can and if so how you would work that. Here is an example to illustrate what I mean:

Year 2000:
Purchase 1000 shares of X at €1 = €1000
Commision is €1 and Stamp Duty is €1 (just for illustration)

Year 2006:
Sell 1000 shares of X at €5 = €5000
Commision is €1.50 (again just for illustration)

The annual account maintenance charge was €5 a year and no CGT submissions were made between 2000 - 2005.

CGT Calculation:

Sell 1000 shares of X at €5 = €5000
Minus Cost of purchase of X = €1000
Gain = €4000

Less Yearly Allowance = €1270
Less both Commisions = €2.50
Less Stamp Duty = €1
Less 6 years Maintenance = €30

Taxable Gain = 2696.50 * 20% = €539.30 CGT

I'm a little confused over deducting account maintenance. Can you just deduct it for the year that you are claiming (i.e the €5 in 2006) or can you deduct the total account maintenance accrued between CGT submissions (if you are not making a submission every year on account of no disposals).
Click to expand...

Annual account maintenance is not an allowable CGT expense. Will only make a difference of €6 in tax liability anyway
 
Yeah it wouldn't be a massive saving anyway. Just wanted to be sure it wasn't an allowable deduction like stamp duty and both purchase/selling commisions. Thanks for that.
 
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