Investment (Funds, Trusts, etc) that returns capital gain
- Thread starter monagt
- Start date
Hi monagt,
You will find a good bit of discussion on this subject under older threads if you look under taxation of ETF's. (Exchange Traded Funds).
My brief summary from memory is that gross roll up funds are a different tax regime to CGT and therefore previous CGT losses could not be set off against profits in such funds.
That rules out most unit trusts and ETF's for you.
Investment trusts are a grey area in this regard and many well informed posters here on AAM have struggled to find a definitive answer as to whether they fall under CGT or the gross roll up regime.
Some have suggested that the best option would seem to be to invest in a company like Berkshire Hathaway that invests in lots of things (ie diversified) and pays no dividend.
The other alternative is to buy shares in a group of companies that have a reputation for paying minimal dividends.
This is a very brief summary from memory only. You would do well to read the threads in question in full.
Regards,
3CC.
You will find a good bit of discussion on this subject under older threads if you look under taxation of ETF's. (Exchange Traded Funds).
My brief summary from memory is that gross roll up funds are a different tax regime to CGT and therefore previous CGT losses could not be set off against profits in such funds.
That rules out most unit trusts and ETF's for you.
Investment trusts are a grey area in this regard and many well informed posters here on AAM have struggled to find a definitive answer as to whether they fall under CGT or the gross roll up regime.
Some have suggested that the best option would seem to be to invest in a company like Berkshire Hathaway that invests in lots of things (ie diversified) and pays no dividend.
The other alternative is to buy shares in a group of companies that have a reputation for paying minimal dividends.
This is a very brief summary from memory only. You would do well to read the threads in question in full.
Regards,
3CC.
Brendan Burgess
Founder
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Brendan Burgess
Founder
- Messages
- 53,747
Hi monagt
The problem is that it is not at all clear that such a fund would get you the relief you are looking for.
As 3CC says, it's discussed at length in a Key Post.
The last thing you want is losses in one pocket and taxable gains in another separate pocket which you can't work against each other.
The problem is that it is not at all clear that such a fund would get you the relief you are looking for.
As 3CC says, it's discussed at length in a Key Post.
The last thing you want is losses in one pocket and taxable gains in another separate pocket which you can't work against each other.
I think the short answer may be that there are no funds in Ireland that suit your requirement.
The only options are investments which clearly fall under the CGT regime -shares, property etc.
As I said before, there are some grey areas, but until someone shines a light on those, the above is all you have, as far as I understand it.
The only options are investments which clearly fall under the CGT regime -shares, property etc.
As I said before, there are some grey areas, but until someone shines a light on those, the above is all you have, as far as I understand it.
Brendan Burgess
Founder
- Messages
- 53,747
I gave you one. Buy shares which don't pay dividends. No income tax liability. You can definitely set the losses against future gains.
Brendan
Steven Barrett
Registered User
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- 5,330
Monagt
Those funds through the life companies aren't taxed under income tax or CGT. You can't write off any losses against profits made on them either.
If you want to go down that route, you will have to buy shares directly. If you have enough money, there are plenty of fund managers who will implement a bespoke plan for you. You will need c. €200k for them to do it though.
Steven
www.bluewaterfp.ie