Capital Gains Tax - question?

D

Dinarius

Registered User
Messages
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I have read most of the threads on CGT on this BB and none of them answers my question, so I presume that the answer is no seeing as no-one else asked it!

I have sold a building and have a CGT liability due soon.

Apart from the usual deductions before arriving at the amount on which the liability is calculated, are there any other ways of reducing the bill or putting the money to good use? For example, can one make a pension contribution using CGT money?

Thanks.

D.
 
The only way to reduce your CGT liability is to
  • Use your annual CGT allowance of €1,270 if not already used up
  • Index the acquisition cost up to December 31st 2003
  • Offset all allowable acquisition, improvement/renovation, disposal costs
  • Offset any previously incurred capital losses
  • Transfer part of the asset(s) to your spouse to allow you to use their annual CGT allowance and previously incurred losses as well
You cannot reduce your CGT liabilities through income tax (e.g. pension etc.) related schemes. They are separate taxes.
 
Many thanks for the reply.

It's hardly worth going through the hassle of transferring part of it to my wife now for the sake of a few hundred euro.

Not sure what you mean by "previously incurred losses" in realtion to my wife?

Thanks again.

D.
 
Dinarius said:
It's hardly worth going through the hassle of transferring part of it to my wife now for the sake of a few hundred euro.
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If you have already disposed of the asset (as you suggest in your original post) then this is irrelevant anyway.

Not sure what you mean by "previously incurred losses" in realtion to my wife?
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I just meant that when an asset is held in joint names then when calculating CGT liabilities both individuals' CGT allowances and previously incurred capital losses can be used. Again, probably a moot point here.
 
ClubMan said:
I just meant that when an asset is held in joint names then when calculating CGT liabilities both individuals' CGT allowances and previously incurred capital losses can be used. Again, probably a moot point here.
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Correct.

As a full-time civil servant, losses are never something my wife has to consider! ;-)

Thanks.

D
 
See the [broken link removed] for some info on the last changes to rollover and indexation relief. See also [broken link removed] for information about rollover relief. I think that the cut off date for indexation relief in this summary is incorrect and should read 31st December 2003 not 2002.
 
In the context of offsetting CGT liability what is meant by offest capital losses ?Anyone any experience of this ?
 
Capital loss is the loss you made on the disposal of a capital asset.

So you sell shares at a gain - you make a capital gain

You sell at a loss - you make a capital loss.

A capital loss can be used in the same yr and set against gains on other assets or carried forward to future yrs and offset against capital gains arising.
 
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