Individual tax

[Gigi2405]

I am considering moving home after many years abroad. I have a pension from the UK and investment income for living expenses/property purchase.
I have a basic understanding of the Irish tax implications as a single individual. However, I have shares in the US which do not pay a dividend and have no need to sell them for the forseeable future. Is there anything I should be aware of before selling these should the need arise? I am aware that CGT on ETFs are taxed after 8 years even if the assets are held. Does this apply to shares not paying a dividend? Would the CGT be added to other income and tax/USC be calculated on the whole amount?

 

[Protocol]

CGT is not applied to ETFs after eight years.

You are thinking of exit tax.



CGT only applies on your shares if you dispose of them, and make a capital gain.

CGT is nothing to do with dividends.



Income tax applies to dividend income.

 

[Gigi2405]

Ok I appreciate that. However, I have been told by an investor that a dividend paying ETF , when held for 8 years, will be assumed sold and subject to CGT. Are you saying this is not the case?

 

[Protocol]

The tax on deemed disposals after 8 years is known as the Exit Tax, at 41%.

This may help:

https://www.standardlife.ie/dam/Global-blueprint/Geo-IE/BZ_IE/BZ_PDF/tax-treatment-of-unitised-investments-and-direct-investments.pdf

CGT is 33%.

 

[Protocol]

Here is a newspaper article on Exit Tax:

Crippling 41pc exit tax on funds to be reviewed, says Michael McGrath

Finance Minister Michael McGrath plans to review the 41pc exit tax charged on life-wrapped funds sold by life assurance companies and from exchange-traded funds.

www.independent.ie

 

[Protocol]

Some more light reading:

5. Taxation of investment products | Department of Finance Consultation Portal

consult.finance.gov.ie

 

[Gigi2405]

Thanks Protocol...I will take time to read the above...jeez, seems there is no escape! What will they tax next!