capital gains tax how much and when to pay

M

merid

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Hi,

I invested 10K in a company 10yrs ago at an agreed interest rate. This week I received payment of the original investment plus 11K interest.

I am just wondering how much of the 11000 profit I need to pay in capital gains tax as this was not deducted. Also when do I need to paid the tax to revenue? Do I do it right away or next year?

Any help would be appreciated as I'm just a regular PAYE worker and never had to make returns like this before.

Thanks
 
The scheme was operated by Glanbia coop - the society's revolving share plan. It was open to farmers and employees - I was an employee at the time.

 
OK I'm not familiar with these Glanbia revolving shares, but assuming they are taxed in the same way as a "normal" sale of shares...:
  • You have made a capital gain of 11k, minus any transaction costs you incurred. That's your capital gain.
  • You reduce it by an annual exemption of 1,270, which leaves you with c.10,730 to pay CGT on.
  • At a CGT rate of 33% for disposals in 2013, that's about 3.5k in tax.
  • Assuming your shares were disposed of since 1 January 2013 then you'll be due to pay your CGT on or before 15 December 2013.
  • The obligation to pay is a separate one from the filing of an actual CGT return - you don't make a return in relation to the disposal until you file your 2013 income tax return in 2014, and there is a section on the Income Tax return for declaring the disposal/gain.
  • If you don't file an income tax return, i.e. PAYE taxpayer only, then you can file a form CG1 next year, on or before 31/10/2014.
 
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