CGT & offsetting losses

I am considering a share sale from which I should make a gain.

I have a capital allowance of E1,270 which can be deducted from the gain and the balance is taxed at 22%.

I think I can offset capital losses on other share sales but I have lost the information re these other purchases/sale. I am going to try and get this information from the relevant bodies.

What documentation would keep the Revenue happy as regards these losses (even though I do not need to submit with my CG1 return)?

For example, I suffer a loss on Eircom and I intend to contact Computer Share services tomorrow re trying to get details. Can they send me out some history of the transactions?

The registrars should hold details of these transactions and be able to give these to you, but also, if you used a broker, he should have the details available.

Don't forget that you have to offset losses before you deduct the CGT allowance for the year.

Also did you know that you don't have to sell shares to 'realise' a loss on them ?

However in the event of a future sale of these shares, their cost will have dropped thereby increasing the gain at that future sale date.

WaterSprite said:

Don't forget that you have to offset losses before you deduct the CGT allowance for the year.

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Thanks for the info.

I take it then that I must submit a CGT return in respect of the years where I made the loss in order to avail of this for offsetting purposes.

I assume the Revenue will not penalise me for not submitting these returns even though I would have had no liability at the time?

I think that you should have listed losses in the year that you incurred them, yes. But I don't think there are any penalties. I'm not 100% sure on that point though (the obligation to list losses that you incurred in previous years) but there's certainly a box for it in the CGT form. I'd just set off the losses and write them a letter with some of the details (amount of loss, year incurred) and say that you neglected to include these in previous returns as you didn't realise that you had to provide that detail if there was no CGT liability. I wouldn't go so far as to actually fill out returns for those years - unless they ask, of course!

Can't see that there'd be any penalty but they may ask for background paperwork (and I think that's even unlikely).