CGT Rollover

D

dangerhere

Registered User
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If no gain accrues on the sale of an asset hence the amount received is less than the indexed valuation is it possible to carry the "loss" forward to another sale and if so is there a time limit.
 
Losses can be used against other gains in that year or future gains. There is no time limit.

You should note that indexation cannot be used to create or augment a loss.
 
Note also that previously incurred losses must be written off against subsequent gains before one's annual CGT allowance when doing a return - e.g. if you have previously incurred losses of €1,270 and make a gain of €1,270 subsequently you cannot use your annual allowance of €1,270 to cancel this out and carry your previously incurred losses of €1,270 forward further. You must write the losses off.
 
ClubMan said:
Note also that previously incurred losses must be written off against subsequent gains before one's annual CGT allowance when doing a return - e.g. if you have previously incurred losses of €1,270 and make a gain of €1,270 subsequently you cannot use your annual allowance of €1,270 to cancel this out and carry your previously incurred losses of €1,270 forward further. You must write the losses off.
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ClubMan - do you have a link to the relevant tax act with this info?
 
YouNeek said:
ClubMan - do you have a link to the relevant tax act with this info?
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Hope ClubMan doesn't mind me interjecting here but if you look at the Revenue's CGT Return form for 2006 :-
[broken link removed]

You'll see on page 3 that p/y losses at line 10 come off c/y gains before the c/y personal exemption at Line 11.

You'll also get further information at :-

[broken link removed]
 
in relation to your query. From what I understand you have created an artificial loss. I refer you to Section 546 TCA 97. Read through the act in relation to this. You are required to return this loss in order to be able to carry it forward. There seems to be a lot of misinformation floating around these boards. Generally speaking what the people above me have said in correct however there are many other situations, which need to be looked at. I assume your "no gain/no loss" situation arises in CGT B 2007?


Regards,

Shane
 
shane7321 said:
There seems to be a lot of misinformation floating around these boards. Generally speaking what the people above me have said in correct

Regards,

Shane
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In terms of the general query posed is the "misinformation" element of above post really necessary ?
 
The query here and the very good responses might be simplified with an example.
If I had bought some asset in 2001 for €10,000 and am selling it in 2007, then the indexed cost is €10,870. Three different situations can arise.

1. If I sell for for more than €10,870, say €13,000, then I have a capital gain of €2,130. If it is my only gain for the year I can set off the annual exemption limit of €1270 and so have a taxable gain of €860 (2130-1270) and a CGT liability of 20% viz. €172.

2. If I sell for anything between €10,000 and €10,870 then I have no capital gain. But it is not a loss that can be set off against gains on the sale of other assets. Generally referred to as no gain/no loss.

3. If I sell for less than €10,000, lets say €9,400 then I have a capital loss of €600. This can be set against gains on other assets. It must go against the earliest available which means other gains of 2007, or if there are none then the next earliest gains made in subsequent years.
 
The above comment is accruate. I assume that the €10,800 etc value mentioned is the index value of the €10,000. I haven't got a index chart to hand! You can also take fee's in relation gain in to account when you are figuring out the capital gain. For instance you would tax advisers fees etc.
 
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