CGT payment on sale of shares

Hi all,
I am looking to invest in shares for the first time but I don't really understand how to go about the process of paying CGT on the sale of shares. I reviewed the info on the revenue website but it seems quite complicated. Just wondering how most people go about this when they first start trading? Do most people use an accountant for this? If so, would the accountant usually charge a percentage or a set fee? ie would the fee wipe out your profit? I understand the first 1,270 is exempt of tax but the form is quite complex in terms of inflation/indexation relief & also if shares are bought via a rights issue etc, further rules apply. Revenue also states that when shares are bought in a foreign currency, the costs of aquisition must be converted to Irish currency in ref to the rate of exchange at the time. So if you join a sharedealing website such as etrade, does this mean all deals operate in their currency where thay are based? Will each deal record the rate of exchange at that time for tax later?
I know this is a lot of questions but one can only learn by asking. Just want to know how most people figure out the tax issues when they are first starting out. I follow business & markets as I have an interest in them but just don't really understand the tax. Any advice is very much appreciated. Thanks!

The mechanics of computing your gain/ loss on the sale of the shares is relatively straightforward if you have only started share dealing and are not impacted by bonus/ rights issue shares.

Effectively, if you buy shares for €1000 today and sell them for €1500 later (without having added to the initial bloc of shares), your gain is €500. Indexation does not apply to purchases made since 1-1-2003 so you don't need to worry about that.

Additional considerations apply if you build up your portfolio of shares in a company over time ie buy some today, get bonus ones later and then buy under a rights issue later on again. In such scenarios, when you sell some of your shares in that company you do so on a 'First-in/First-out' basis ie you are deemed to sell the shares you have held for the longest period. However, you need to evaluate the impact of bonus/ rights shares on the 'full price' shares and that can be a little complicated- basically, you might need to get an accountant to help in such scenarios.

You will only after to worry about the CGT if you sell at a gain. Indexation has been done away with since 2002 so this will not be an issue for a new purchases.

The CGT will be quite simple in that when you make a sale you will be treated as having sold the oldest shares first. i.e shares are sold on a FIFO (first in first out basis)

Bonus issues and right issues will slighly complicate matters.

Shares acquired under a bonus issue will in effect increase the amount of original shares and reduce their unit cost. e.g.

You have 100 share costing €1
if there is a 1:1 bonus issue then you will get 100 free shares

If you now sell 50 Shares. FIFO rules apply so you will be treated as selling 25 of the orginal shares and 25 of the bonus shares i.e you cost will be €25.

A right issue where you get a right to subcribe for additional shares will be the same except you now have a cost for the additional shares.

As per above (but assume 1:1 right issue at €1) if you sell 50 shares yoy will be treated as disposing 25 €1 shares and 25 right at €1 cost i.e a cost for CGT of 50.

Hope this clears some of your questions

Thanks for the feedback folks.
How do most stock investors (especially novices) deal with CGT issues when they first start out?
Do most individuals/investors make their own CGT/dividends payments and complete the CGT/(dividend income tax) return forms themselves or do they use tax advisors/accountants to carry out the process on their behalf to ensure all is done correctly.
Would the accountant usually charge a percentage or a set fee? ie would the fee wipe out your profit? Thanks

Best to do it yourself if the gains are small. Accountant will / should charge based on time spent. If the gain and hence the tax in large then have an accountant review.

Assuming dividends are paid out every so often, how is the income tax handled in this regard? Do I just record total dividends once each year & submit all together or submit returns each time?
How do you learn this stuff when it is your first time?
My main concern relates to the problems which would arise if you got your returns wrong unknowingly due to a lack of understanding.