Reducing future possible CGT bill?

Protocol

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2,960
I own shares in PTSB, Anglo, BoI and AIB.

I think approx 2,000 spent on each.

I suffered a total loss on Anglo, and I think a 99% loss on PTSB and AIB.

I now own 3 shares in AIB and 12 shares in PTSB, is this because of capital re-structuring?

I bought more BoI when they had fallen, so maybe 4,000 spent on BoI.

Now, I also own Ryanair.

460 shares bought at 4.00 approx, many years ago.
520 shares @ 10.50 bought during the last year

Say Ryanair go back to 15 euro.

Is there any action I can take to use the losses on the bank shares to reduce the CGT on Ryanair?

I have heard of B&B, what does that mean?

I am willing to sell my remaining AIB and PTSB shares, but I wish to remain a shareholder in Ryanair.

Does this mean I sell and buy back Ryanair?
 

Brendan Burgess

Founder
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You won't face an Capital Gains Tax on Ryanair until you sell them.

But before you sell them, you should sell your bank shares and you can set those losses against your gains on Ryanair.

It's enough to sell the AIB, BoI and ptsb in the same year (or a previous year) as Ryanair to set the losses against the gains.

Anglo is a bit different. If you sell the shares in Ryanair this year, although you wont' make your CGT return until next year, you must make a declaration of loss this year on the Anglo shares. It's a while since I faced this problem and it may have changed in the meantime. But check it out before selling the Ryanair shares.

But in any event, you don't need to do anything until the year you sell the Ryanair shares.

Brendan
 

torblednam

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443
Anglo is a bit different. If you sell the shares in Ryanair this year, although you wont' make your CGT return until next year, you must make a declaration of loss this year on the Anglo shares. It's a while since I faced this problem and it may have changed in the meantime. But check it out before selling the Ryanair shares.
 

Brendan Burgess

Founder
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38,451
Thanks mandelbrot

Protocol - this means that you do not need to do anything with your Anglo Shares.

You are treated as having disposed of them in 2009 and can calculate your loss for CGT purposes as of that date.

The loss can be carried forward and used against any subsequent gains.

Which raises another important point.

The first €1,270 of gains each year is exempt from CGT. Some people sell enough shares to use up this exemption.

However, the losses forward must be used first. As you have losses forward from Anglo, there is no point in you doing this.

Brendan
 
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