Should I do a Bed and Breakfast

[galleryman]

I have some bank shares that i purchased 4 years ago for about €8.50 more per share than they are now worth.

If I do a B&B (sell and immediately buy back at the same price on same day) I will realise a capital loss of €8.50 per share.

Is that capital loss of any use to me if I have NO other capital gain in this tax year to offset it against?

 

[ClubMan]

Don't think so. I think the 4 week rule comes into play here - i.e. if you sold the shares at a loss and then bought them back 4 or more weeks later then you could use the loss in this way.

Update: [broken link removed] has some info on this and seems to support my understanding.

 

[colinjo]

Was thinking of this myself and it's defintely not an option according to http://www.revenue.ie/leaflets/cgt1.pdf which says ...

"where a loss accrues on the disposal of shares and shares of the same class are acquired within a four week period, the loss is not available for offset against any other gains arising. Instead the loss is only available for set off against any gain that might arise on the subsequent disposal of the shares so acquired in the four week period"

 

[jpd]

I have some bank shares that i purchased 4 years ago for about €8.50 more per share than they are now worth.

If I do a B&B (sell and immediately buy back at the same price on same day) I will realise a capital loss of €8.50 per share.

Is that capital loss of any use to me if I have NO other capital gain in this tax year to offset it against?

You could purchase a different bank share, in which case the loss could be carried forward indefinitely until you do have a capital gain to offset.

Or indeed, you could just bank the proceeds.