Must you still pay CGT on profits regardless of weather you made an overall nett loss

[qazxswedc]

If you make say 10 profitable transactions in a year making a profit of €20,000 giving a CGT requirment of €4400. You reinvested the full €20,000 back into shares and the shares collapsed for instance meaning you've overall for the year made no profit. Can the revenue commissioners still come along and ask for the €4400 that had been owd to them or the fact you made overall in the year no profit due to your big loss at the end of the year, you now owe them nothing.

In other words if you lose all your profit, the tax man also loses his share or is he still owd his share regardless?

Thanks

 

[Keano99]

Re: Must you still pay CGT on profits regardless of weather you made an overall nett

as far as i know you can net off your losses against your gains to find the net figure owed to revenue.

have you seen the press stories about the anglo 10 being able to use their losses on the anglo shares against any future capital gains profits that they might make..

 

[qazxswedc]

Re: Must you still pay CGT on profits regardless of weather you made an overall nett

as far as i know you can net off your losses against your gains to find the net figure owed to revenue.

have you seen the press stories about the anglo 10 being able to use their losses on the anglo shares against any future capital gains profits that they might make..

No i hadn't noticed. I'm new to share dealing. How is CGT calculated. Is is calculated on each individual share deal or calculated as a total at the end of the year? or would it add up to the same thing anyway?

 

[WaterSprite]

Re: Must you still pay CGT on profits regardless of weather you made an overall nett

Note, you can only offset REALISED losses against gains. So if you reinvest the whole lot and the share price "collapses" but you don't sell, then you pay CGT on the gain regardless. To offset the loss, you'd have to have sold the second set of shares at a loss.

OP, please, please, please read the Revenue's CGT guide. You've posted a lot of pretty basic questions about CGT over the last few days and it's clear that you are a novice at this (as you've said yourself). You should arm yourself with as much basic information as possible and the Revenue CGT guide is extremely comprehensive.

 

[mercman]

Re: Must you still pay CGT on profits regardless of weather you made an overall nett

Basically, unless they are real losses which have occurred they are not allowable. This means if the valuation is showing a loss but you have not disposed of the shares the CGT is payable. However, you could do a Bed & Breakfast arrangement with the shares where you could sell them show a true loss and repurchase the same shares at a later period. Talk to an accountant regarding times and dates etc.

 

[bogle]

Re: Must you still pay CGT on profits regardless of weather you made an overall nett

OP, please, please, please read the Revenue's CGT guide. You've posted a lot of pretty basic questions about CGT over the last few days and it's clear that you are a novice at this (as you've said yourself). You should arm yourself with as much basic information as possible and the Revenue CGT guide is extremely comprehensive.

Dude - thats good advice!