Offset losses against income tax

Hi,

Over the last number of years I have invested approximately 65000 on the Irish stockmarket. If I were to sell them today, I would make a loss of 60000. If I earn, say, 80000 a year, can I somehow reduce my income tax bill by having my losses taken into account (e.g. gain=80000, loss=60000, => pay tax on 20000?)

Any clarification would be much appreciated!

Cheers,

David

No, your losses on your shares are capital gains tax losses and can only be offset against capital gains, not income.

Your losses are treated as capital losses and are only allowable against capital gains. So you can write off your losses against any capital gains and the surplus gain (if any) is taxed at 20% CGT. You should note however that even if you have not made any gains since these losses, the losses can be carried forward indefinitely and written off against any future gains. The losses are not allowable against income tax, that is a totally separate issue. I'm in the same boat, can't wait to actually make some gains in order to write my losses off...!!!

Hey, thanks for the responses - I hadn't expected them to come so fast! Being able to carry them forward indefinitely is some comfort, I suppose.

Thanks again!