How to carry over loss on shares.

can anybody give me definitive advice on a few questions.
Made a loss of 1000 on selling shares.Now this doesn't include stockbrokers fee or Gov stamp duty on buying the shares.
1. Do I need to inform tax office of my loss this year in order to carryover next year against any profits I make. ? If so what form do I fill out ? Can I carry over stockborker expenses and Gov Stamp duty also.

2.Next year if I make a profit of say 2270, Do I need to inform tax office of my profit above 1270 and the fact that I'm applying the loss I made last year.

3 Does this loss carryover expire after a certain no. of years if not used?

Thanks in anticipation !

Q1 .
Yes
File a Form 11 by next Oct 30. It has a section to declare Capital Gain losses
All commissions, fees and stamp duty expenses are allowable when calculating the loss

Q2 Yes. Again the Form 11 (or online equivalent) has the boxes necessary

Q3. No, losses can be carried forward indefinitely but must be used before using annual allowance

The above answer in partially wrong. The above person is assuming that the individual is registered for income tax.

Ok let me break it down to help you. Firstly in relation to the form you have to fill in. If you are registered for income tax then yes you fill in the CGT section of the Form 11.

I'll give you an example based on your figures.

Lets say you realised a capital loss on 1st May 2007. Firstly you calculate your loss, including related fees etc... Then you offset it against other gains from this period. In your case you appear to have no other gains. So on or by the 30th September you return a CGT Payslip A 2007 with a letter attached to inform your tax office the you are carrying forward a capital loss of €1,000 plus fees etc...

Then by the 31 October 2008 you return either a CG1 or a Form 11/12 depending on your circumstances. I am guessing that you fall into the CG1 category (i.e. solely declaring a PAYE income to Revenue.). You can offset set your loss against gains in the future. This can be done indefinitely.

Regards,

Thanks for the reply , this is exactly what I was looking for, just to clarify my situation,
I'm a PAYE employee. Might be an idea to be a sticky as it appears to pop up a lot.

So, just to clarify , I will be filling in a CG1 form that has to be filled in before Oct 31 2008 as I only realised the loss last week.
Any future gains over 1270, I will inform Tax office by once again filling in a CG1 form and on this including the year of my loss to avail of the carryover.

Yes, I would also recommend you return a CGT Payslip B 2007 on or before the 31st Jan 2008. You don't actually return a cheque with this, instead return a covering letter giving a brief detail of the loss you have realised. In relation to the €1,270 you quoted, this is an annual allowance so it doesn't mean you get this every time. For instance if you have multiple gains in one year you can only use your allowance (€1,270) once in the year. Hope this helps.

Regards.

Just wandering I am not registered for income tax, but due several rental properties I fill in a form 11 online instead of a form 12. I have made a loss of over 12,000 Euros investing in shares in my own company (dont ask long story). Can I offset this loss against the tax i would have paid on the rental income (expecting about 7,000 Euros for 2007)? I havnt actually sold the shares yet. So i guess until I actually sell them I havnt officially made a loss, is that correct? Also if I dont sell them within the end of this month I guess I will have to wait till the following year before I can offsett the loss? thanks....

You cannot offset capital losses against income tax. You do not have a capital loss until you actually dispose of an asset at a loss (with some exceptions - see the key topics thread).

Club man is correct, you can't offset a capital loss against passive income (rental income etc..)