Key Post Capital Gains Tax on sale of shares

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Another CGT Question:

My wife and I are jointly assessed under PAYE. I have a stockbroker account in my name. Can I avail of my wife's CGT allowance as well as my own?
 
Silversurfers said:
Another CGT Question:

My wife and I are jointly assessed under PAYE. I have a stockbroker account in my name. Can I avail of my wife's CGT allowance as well as my own?
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No.

It's covered in the very first post of this thread:
"Married couples

Married couples do not have double the exemption; they have €1,270 each

A person should consider transferring shares to their spouse to avail of the €1,270 annual exemption

Married couples who are jointly assessed may set off the losses of one spouse against the gain of the other."

Technically you could transfer shares into your wife's name, and then she sells them, but it can be complicated. There's an example in the following article:

Marriage of minds on cutting CGT

MY wife and I both work. I am on the top rate of income tax (42pc), while she earns a lot less than I in a part-time capacity and pays tax at 20pc. I have a significant block of shares in Allied Irish Banks which I have held for a long number of years.
m.independent.ie m.independent.ie
 
I am in the same boat. I have a stock account with mercer.
I'm married and would like to able to use my wifes exemption of 1270 also.
Has anyone suceessfully transferred shares to spouce?
 
Its an approved profit share scheme.
Basically if a bonus is received shares are purchased. No paye tax is incurred because they are left in the scheme for 3 years. When the 3 years have passed the shares that were bought previously are sold and they usually would have gone up in value hence the CGT
 
bitethebullet said:
yes they are
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Contact your share registrar, and ask them how to do it. You might need to get physical share certificates, and then send these with a completed share transfer form to the registrar. You'll need the form stamped to show no stamp duty is due on the transfer to spouse (which is one reason a broker can't just change account to joint names)
 
Hi I have a question regarding the 4 week rule in the following scenario.

Day 1: buy 1000 shares
Day 5: buy 500 shares
Day 10: buy 250 shares
Day 35: sell 300 shares (selling shares purchased within 4 weeks of acquiring plus an additional 50 shares outside the four weeks).
Day 39: sell 1450 shares

How is the gain/loss calculated for day 35
  1. (sell price of 300 shares) - (buy price of 250 shares) - (buy price of 50 shares from the 1000 shares)
  2. (sell price of 300 shares) - (buy price of 250 shares) - (buy price of 50 shares from the 500 shares)
How is the gain/loss calculated for day 39

  1. (sell price of 1450 shares) - (buy price of 1000 shares) - (buy price of 450 shares from the 500 shares)
  2. (sell price of 1450 shares) - (buy price of 950 share from the 1000 shares) - (buy price of 500 shares from the 500 shares).
Thanks :)
 
Regarding the initial post's last section:

Tax planning points
You should consider selling sufficient shares each year to use up your €1270 annual exemption. However, the tax saved is only €317.50 so make sure that it is not eaten up in stamp duty and stockbrokers’ charges. However, if you were planning on selling shares anyway in the new year, you would be better off selling them before the end of December instead.
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If I sell enough shares to use up the €1270 tax exception, isn't that €1270 in my pocket?
I don't get this part specifically:

the tax saved is only €317.50
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Where is €317.50 coming from?
It's 25% of the annual exception for some reason.

Thanks!
 
Regarding this from the initial post:
Calculating the chargeable gain
The sales proceeds includes the net proceeds after paying broker fees.
The cost is the total cost including stamp duty and brokers’ fees
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Do the allowable costs/expenses cover the following:
  1. Trade Transaction fee
  2. Forex fee (if buying a share in USD for example, where your Euros gets auto converted (e.g AutoFX on Degiro))
  3. Exchange connection fee (NYSE for example)
  4. General account maintenance fees (e.g. Flatex's (Degiro bank account that holds your money) interest charges)
These charges are related to the costs of purchasing assets, so would they be considered allowable?



Note from Revenue:
Cost of acquisition, i.e., the consideration which was given wholly and exclusively for the acquisition of the asset, plus the incidental costs of acquiring the asset
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Source: www[dot]revenue[dot]ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-19/19-02-10.pdf


And another:
costs (for example, fees paid by you to a solicitor or auctioneer) when you acquired and disposed of the asset.
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Source: www[dot]revenue[dot]ie/en/gains-gifts-and-inheritance/transfering-an-asset/how-to-calculate-cgt.aspx
 
The exchange connection fee maybe not - isn't that so that you have up to date information - hardly necessary for purchase

Account maintenance fee - certainly not
 
Hi all,

Have a question relating to the tax treatment of spinoffs. I have a very small holding in Pfizer and they recently offered shareholders 0.124079 shares of Viatris common stock for every one share of Pfizer common stock held as of the close of business on the record date (which was November 13, 2020). Shareholding in Pfizer remained unchanged after the spin-off. As my shareholding was small enough so that the offering of Viatris stock came in under 1 share, Degiro just credited my account with the equivalent value of my expected shareholding.

How is this treated for capital gains tax purposes. My thoughts would be that you are subject to cgt on the full credited figure as there is no cost of purchase or expenses to offset. Would that be correct?

My gains were less than my allowance for the tax year so no payment is due but I will need to report on it so I'm curious.

Cheers, G.
 
gavmcg92 said:
Hi all,

Have a question relating to the tax treatment of spinoffs. I have a very small holding in Pfizer and they recently offered shareholders 0.124079 shares of Viatris common stock for every one share of Pfizer common stock held as of the close of business on the record date (which was November 13, 2020). Shareholding in Pfizer remained unchanged after the spin-off. As my shareholding was small enough so that the offering of Viatris stock came in under 1 share, Degiro just credited my account with the equivalent value of my expected shareholding.

How is this treated for capital gains tax purposes. My thoughts would be that you are subject to cgt on the full credited figure as there is no cost of purchase or expenses to offset. Would that be correct?

My gains were less than my allowance for the tax year so no payment is due but I will need to report on it so I'm curious.

Cheers, G.
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That was a "special dividend " 1 Vtrs for 8 Pfe held if you got less than one share at $14 now and and exchange rate of 1.195 today I'd not worry about it.
 
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