Sell shares at loss to get CGT rebate?

G

GBK

Registered User
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10
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
 
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.
 
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.
 
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