Do I need to submit CGT return

T

tuna_tuna

Guest
Hi all,

In February 2007, I sold some shares, the amount I received after paying admin fees etc was 1330 euro.

I initially bought these shares for 120 euro, so therefore my net gain was (1330 - 120) = 1210 euro

As this gain falls below the threshold of 1270 euro,
I don't have any tax liability. (Am I correct in all this?)
I won't be selling any other assets this year.

And does having a zero liability mean that I won't need to submit
a Capital Gains Tax return for 2007 ? (I pay all my income tax through the PAYE)

 
CGT is a "self-assessed" tax, so the taxpayer must file a return if one is considered necessary even if Revenue have not initiated the return. In your case, even though the net liability is likely to be "nil" I would still consider it necessary to file a return ( form CG1 available from Revenue.ie) to show that there is a "nil" liability. The "nil" liability only arises from application of the personal exemption. If that were, say, income tax, the reduction to "nil" of ones income tax liability from applying personal allowances/credits does not remove the obligation to file a return and the same, I believe, goes for CGT.
 
You should include the details on your next Form 12, even though you would appear to have no tax liability, unless you had other capital gains.

Many would probably not bother, but when you complete any Revenue form you sign a declaration to the effect that you've disclosed all relevant information fully and accurately, to the best of your belief.

[Edit: post crossed with Graham 07's]
 
Just a further question similar to this that someone may be able to help with.

I made a similar Captial Gain between Jan1st and Sept 30th of this year (1260 euro). As this is less than the 1270 do I need to fill in the CGT Payslip A even though there is no tax due. Is it enough to just fill out the annual return next October recording this information and the fact there was no liability.

thanks.
 
The following would be my understanding:

A Payslip for CGT only needs to be filled out if you are paying money to the Revenue Commissioners, and should be submitted twice annually where there is a gain (By the end of jan for gains from 1st Oct-31st Dec, and by end of October for gains from 1st Jan-30th Sept).

The CG1 form needs to be returned annually and effectively breaks out the CGT into it's componant parts (land sales, share sales etc...). The CG1 form that relates to the calendar year 2007 does not need to be in until 31st October 2008 I think. (NOTE: the obligation to pay taxes due and the obligation to return a CG1 form follow separate timelines.)

From how I read your post, you made two gains this year, the sum of which would leave you with a small CGT liability.
 
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