Off Setting Investment Losses

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Bilzer19

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I have invested €6K in the ISEQ20 ETF fund in 2007 when it was as its peak abut 9000 but my 6K is now worth about €2K . If I was to invest another K in the same ETF now and it rose in value could I off set the Capital Gains Tax due on the margin against the loss I made on the first €5K invested.
 
Not sure that I understand the question.

There is no CGT due on investments in an ETF - any gains made on disposal are taxed as income at 28%. Losses can be offset against similar gains, I think - this whole area is rather badly treated on the www.revenue.ie site which is years behind the financial markets in the area of funds.

But I could be wrong...
 
As you are comtemplating averaging down into the same product, you will have no gain until the price of the ISEQ ETF rises above your average cost. If you sell the ISEQ ETF before the price rises above your average price, there is no loss relief against gains elsewhere - draconian but true.
 
Thanks for your replies, they are useful. The reason why is ask is - I also have a small investment in a Celtic Quinn Life Freeway which is about to break if the Irish index continues its upward trend. I would therefore will be paying 28% on any gains.
However if i was to withdraw the monies in the Celtic Freeway and invest in the ETF woud l be finiancially better off as it would take more time to reach break even point with my previous investment. Would I have to make a gain of €4K before paying tax taking into account my previous investment loss or is this treated as a sperate investment?
 
I think Rory has explained this.

If you put 1k more onto your existing 6k investment, you will have a current value of 3, and a cost of 7, and you will be able to make a gain of 4 before you start paying tax.

I'm not really familiar with Celtic freeway, but if it is invested in the same types of stocks as your other fund, and hence percentage growth will be the same in both then I think it would be advantageous to switch into the ISEQ20 fund.

Open to correction...

Ix.
 
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