Capital Gains Tax

Q

*questions*

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Could someone explian in a nut shell how CGT impacts when one sells shares- am i right in thinking the treshold is about €1200? Is it tax free to this level or is income tax payable on this amount? Also if the shares were a gift how does that impact on the situation? I'd appreciate if someone could detail a hypothetical scenario- shares received as a gift sold for €1500 how much would one end up with?

Thanks
 
Re: Capitals Gains Tax

I assume the shares are registered in your name. Have you being getting the dividends on theses shares
When you sell shares you have to consider CGT on these shares. This is calculated as follows:

Sales of shares less expenses
less
Cost of shares plus expenses

Profit
Less allowance 1270
Balance @ 20%

If the shares are given as a gift then you will some how have to prove that the shares passed to you on a certain date i.e. the date the shares were registered in your name.
A commissioner of oaths (most solicitors) should be able to provide you with this for a small fee. I think he has to say that he knows you ????

The shares will be valued at that date and the shares calculated as above

In this instance the total value of the shares appears to be small but if the shares were passed (gifted) to you, you could be liable for gift tax (CAT)
 
Re: Capitals Gains Tax - additional quesiton

Hi,

Another CGT question.

Is there a time limit to when you can write off a capital loss against a capital gain. I generally buy shares to hold long term but sometimes they have been bought out at a loss e.g. eircom, alphyra, riverdeep. If i sell other shares for a gain in 5 years time, can i still offset this gain against my earlier losses. Is here any time limit in place?

Also if you make less than the 1200 euro gain in a given year is it still necessary to put this in your tax returns?

Apologies if the answer is posted somewhere already - have done a quick search but didnt find it.

thanks
 
Re: Capitals Gains Tax

ok.. i found another post where someone said that the capital losses could be carried forward indefinitely.

if this isnt true maybe let me know.

thanks
 
Re: Capitals Gains Tax

a capital loss can indeed be carried forward indefinitely....however it must be used before the annual exemption of €1,270. it cannot be carried back except in the year of death
 
And a capital loss cannot be increased through the use of inflation indexation just in case that's relevant.
 
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