Can loss on investment fund be offset against other Tax liability?

[HAL9000]

Hi,

I invested in the AIB Galaxy fund in 2003 and now need to cash it in, even though it is worth quite a lot less than what I originally invested. Can this loss be set against any other income or carried forward and set against a capital gain in 2010 or 2011? I suspect probably not, but would appreciate confirmation one way or the other.

Thanks in advance

 

[John Conlon]

If this is what is called a Gross Rollup fund it is taxed at a 23% exit tax. This is not offsettable against other Income Tax or CGT liabilities. You pay tax at a lower rate but lose out on loss relief.

If you have taken a large loss but dont need the cash there is one option.

These funds are taxed on gains on a rolling 8 year interval. At this point you could cash out at no gain and go back in. This resets the 8 year clock. You would defer what would hopefully be tax on a gain.

you should ask your investment advisor if indeed this fund is a 23% fund.
If not you would show a capital loss. This could be used vs any other gain or carried forward agains future gains. hope springs eternal.