No one was forced to sell anything. If they were trying to avoid paying tax on deemed disposal why would they make an actual disposal - what does that achieve?
No one was forced to sell anything. If they were trying to avoid paying tax on deemed disposal why would they make an actual disposal - what does that achieve?If they do abolish deemed disposal what about the people that sold all their us domiciled etfs in 2021 because of the removal of the revenue clarification regarding us domiciled etfs being taxed like normal shares. They won't be happy as they were effectively forced to sell their etfs and crystallise their gains and pay the cgt
I completely agree with you. Ironically enough the changes would even benefit smaller investors more than bigger, wealthier investors given how it facilitates diversification. I really hope it changes soon. Funds are a much better way to invest for most people and the current system is just rubbish.Investing is so mainstream now that it is no longer the reserve of the wealthy where you need a stockbroker to place a trade.
By saying it will be for the next minister to implement, it is certainly saying to the voters the Jack Chambers will implement it if FF is returned to power. Will Pearse Doherty? Unlikely.
If it does happen and happens quickly, it is brilliant news for investors all round. Investing in Ireland has been so difficult with 41% tax on gains taking all the joy out of it. 33% is a lot more equitable.
The current system, as originally implemented was great. Gross roll up, 23% exit tax on growth, no deemed disposals.I completely agree with you. Ironically enough the changes would even benefit smaller investors more than bigger, wealthier investors given how it facilitates diversification. I really hope it changes soon. Funds are a much better way to invest for most people and the current system is just rubbish.
Investing is so mainstream now that it is no longer the reserve of the wealthy where you need a stockbroker to place a trade.
By saying it will be for the next minister to implement, it is certainly saying to the voters the Jack Chambers will implement it if FF is returned to power. Will Pearse Doherty? Unlikely.
If it does happen and happens quickly, it is brilliant news for investors all round. Investing in Ireland has been so difficult with 41% tax on gains taking all the joy out of it. 33% is a lot more equitable.
Isn't it 41% exit tax on growth? Or do you mean that it was 23% at some point in the past?The current system, as originally implemented was great. Gross roll up, 23% exit tax on growth, no deemed disposals.
I wrote to him weeks before budget and didn't hear back yet....expect office has been busy with his recent elevation, budget and now General Election.I think Chambers wants be seen as progressive.
I am thinking of writing to him about it, giving him good feedback.
I happen to know his personal assistant, very well.
It was originally introduced in 2001, and the tax rate was standard rate plus 3%. When the bad times came, the plus 3% was increased a few times before being replaced with it's own rate, and deemed disposals being added.Isn't it 41% exit tax on growth? Or do you mean that it was 23% at some point in the past?
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Deemed disposal has been around since the finance act in 2006 - it had a pre-crash introduction, and applied from funds bought in 2001 so the first round of deemed disposals started to happen in 2009. Some info here from 2011 https://www.irishtimes.com/news/consumer/fund-manager-seeking-tax-on-deemed-disposal-1.586446It was originally introduced in 2001, and the tax rate was standard rate plus 3%. When the bad times came, the plus 3% was increased a few times before being replaced with it's own rate, and deemed disposals being added.
The report says deemed disposal removed and tax rate aligned with the CGT rate, with limited loss relief. So not exactly the income tax + CGT regime. It's not clear how paid out dividends would be taxed or that the same €1,270 exemption would apply.(2) exit tax and deemed disposal both abolished, and replaced with a new tax regime? Normal income tax and CGT on returns from ETFs?
In the same way as ETFs, including removing the 1% levy.But how are returns from managed funds taxed?
When the current regime was brought in, the previous system remained in place for funds already purchased. There are still people out there with funds taxed on the old pre 2001 basis. Would the government put a third regime into place?(2) exit tax and deemed disposal both abolished, and replaced with a new tax regime? Normal income tax and CGT on returns from ETFs? But how are returns from managed funds taxed?
Changing the rate from 41% to 33% and removing future deemed distributions would allow the current regime to remain in place after those changes.The report says deemed disposal removed and tax rate aligned with the CGT rate, with limited loss relief. So not exactly the income tax + CGT regime. It's not clear how paid out dividends would be taxed or that the same €1,270 exemption would apply.
Doesn't this proposal swing too far in the other direction? Funds would be taxed more favourably than a basket of individual shares. Dividends net of withholding tax would roll-up in the fund then be taxed at 33% (CGT), whereas individual share dividends would be taxed at 52% (marginal rate).Changing the rate from 41% to 33% and removing future deemed distributions would allow the current regime to remain in place after those changes.
why can't the dividends be taxed at the marginal rate regardless of whether they are distributed or rolled up? Is that what happens in the UK?Doesn't this proposal swing too far in the other direction? Funds would be taxed more favourably than a basket of individual shares. Dividends net of withholding tax would roll-up in the fund then be taxed at 33% (CGT), whereas individual share dividends would be taxed at 52% (marginal rate).
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