Sell shares at loss to get CGT rebate?

[GBK]

Hello to all,

Last year on disposal of a 2nd house we paid a substantial amount of CGT,paid prior to 31st Oct 2007.
My wife has a number of shares through an employee share scheme with one of the banks - would it worth and is it possible to dispose of these shares (definitely at a loss at current prices) and get tax back on the CGT
paid. Do all the disposal of assets have tohappen in the same tax year.

Thanks

 

[ClubMan]

No. If you incur a capital loss then you can carry this forward and set it against future capital gains. You cannot set it against previously incurred gains or CGT liabilities.

 

[ronaldo]

Hi,

I am due to pay capital gains tax of 19,000 at the end of this month for a house sold in April this year. I've read the revenue guide at http://www.revenue.ie/leaflets/cgt1.pdf and in particular, the following section:

Losses

Where there is a loss on a disposal it will normally be allowable if a gain on the same transaction would have been chargeable. Allowable losses are set against the chargeable gains of the same year and if the losses exceed the gains, the excess may be carried forward against gains of later years. Special provisions apply to losses on certain disposals, for example shares sold within four weeks of acquisition and deveopment land.​

Would I be correct in saying that, if I were to purchase shares tomorrow (for example), I would be exposing myself to 100% of the possible upside but only 80% of the downside.

This is because, as far as I'm aware, if the shares drop, I could sell them before year end and should be entitled to a refund of the CGT that I'm due to pay this month.

 

[ubiquitous]

Hi,

I am due to pay capital gains tax of 19,000 at the end of this month for a house sold in April this year. I've read the revenue guide at http://www.revenue.ie/leaflets/cgt1.pdf and in particular, the following section:



Would I be correct in saying that, if I were to purchase shares tomorrow (for example), I would be exposing myself to 100% of the possible upside but only 80% of the downside.

This is because, as far as I'm aware, if the shares drop, I could sell them before year end and should be entitled to a refund of the CGT that I'm due to pay this month.

Yes, but it makes no sense to incur a loss of, say, €1,000 in order to recoup a tax saving of €200.