CGT on Property/Shares

[apd]

Hi,

I am selling an investment property and as such will be liable for 20% of (purchase price - selling price).

However I have a Capital Gain Loss that I can realise on some stock options by selling them this year. I purchased shares in a previous employers company via an ESPP plan. Purchased them on average for 30-40 dollars, now worth 4 dollars. Have about a 10000 euro CGT loss if sell now.

Will the solicitor dealing with the sale of the house deal with CGT liability by deducting it from the funds i receive, similar to the way he/she deals with stamp duty? Or is it up to me to declare and pay the CGT? How long after the sale of the property would I have to pay this? One month? Or at the end of the year?

If it was at the end of the year, I could declare both the gain and loss and only write the cheque for the difference. otherwise would I have to pay the full CGT and then claim back the refund after the share sale.

Thanks

 

[ClubMan]

20% of (purchase price - selling price).

Less annual CGT allowance of €1,270. Less allowable expenses. Less indexation relief if applicable. Less previously incurred capital losses. etc...

Will the solicitor dealing with the sale of the house deal with CGT liability by deducting it from the funds i receive, similar to the way he/she deals with stamp duty?

No. CGT is a self assessment tax so you need to deal with this yourself. If in doubt get expert advice and assistance on doing this correctly.

How long after the sale of the property would I have to pay this? One month? Or at the end of the year?

See these Revenue links.

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If it was at the end of the year, I could declare both the gain and loss and only write the cheque for the difference. otherwise would I have to pay the full CGT and then claim back the refund after the share sale.

I don't really understand what you're getting at here but I think it's irrelevant anyway. You don't claim back refunds of CGT in the way that you outline.

 

[apd]

Thanks.

What i was getting at in the last section was, do you declare your net CGT liability at the end of year tax return. Or do you have to pay CGT within say a month of the gain being made?

 

[bazermc]

Apd

Payments dates for cgt differ to cgt return dates
Payments of cgt for diposals between 1/1 to 30/9 must be paid before 31/10 and disposals made between 1/10 to 31/12 must be paid by 31/1
The return date is 31/10 following the tax year in which the gain is made

So for example if you make a gain this month it must be paid by 31/10/06 but not filed until the end of the tax year and returned by 31/10/2007

 

[asdfg]

Will the solicitor dealing with the sale of the house deal with CGT liability by deducting it from the funds i receive, similar to the way he/she deals with stamp duty?

No it is up to you to declare the CGT. AFAIA you can deduct the loss of shares against the investment profit.

How long after the sale of the property would I have to pay this? One month? Or at the end of the year?

On or before 30 September in the tax year - Known as the Initial Period, CGT is paid by
31 October in that tax year​

From 1 October to 31 December in the tax year - known as the later period,
31 January in the following tax year

So if you do both transactions within the same period you can go as you say, offset one agsinst the other and pay the difference.
You can't however have a gain in one year and then a loss in year 2 and claim against the first years gains but you can carry the loss forward until you make a gain.
​

See here for more info on CGT