I doubt that's accurate, I mean how many Irish companies paid dividends? Whereas CT no matter what rate would be applied to every company and most of these companies were not plcs nor paid anything to shareholders.Before corporation tax was reduced down to 12.5% taxing the profits of companies and again taxing the same money as dividends was regarded as double taxation. It appears therefore Irish companies paid less tax but Irish shareholders paid more in that they suffered double taxation which they didn't suffer before
Yes,Do you mind sharing your source for that?
The only thing obvious to me is that you should not be giving tax advice.It is fairly obvious that the interest you pay on loans to purchase shares is part of the costs
That refers to a company that you own and manage, that makes its money from rental income on property, and where you take out a loan in connection with that rental business. You can't just cherrypick the first sentence of 1(a) and 2 and apply it to the purchase of shares in any company. Did you read Case V of Schedule D?The tax consolidation Act 1997 chapter 248 (2) and (a) this is what it states:-
(2) Relief shall be given in respect of any payment of interest by the individual on the loan:-
Look it upon on Google, easy to find. Scroll down to chapter 248.
It is fairly obvious that the interest you pay on loans to purchase shares is part of the costs.
Do you mind sharing your source for that?
Tax Consolidation Act 1997 chapter 249.Do you mind sharing your source for that?
Do you mind sharing your source for that?
Sorry, I did not intend to give advice but I was only stating what I read .The only thing obvious to me is that you should not be giving tax advice.
Read the entire conditions of the relief you mentioned.
OK, but you can't pick and choose sentences and ignore all the conditions and anti-avoidance measures, and then state it as fact.Sorry, I did not intend to give advice but I was only stating what I read .
I remember trying to understand that ACT stuff and hoped it wouldn't appear either tax or financial accounting papers, my wish wasn't granted, so had to do eps and diluted eps which wasn't easy but it was easier than ACT and Franked /UnFranked dividends they were part of that I think.It’s a relief that was there previously and then phased out during the financial crisis.
Pre-2011 or thereabouts, I could borrow to buy shares in a trading business and get a deduction against my total income.
But it’s been gone for years.
As for the broader question within this thread, in the dim and distant past there was a mechanism whereby investors could get some credit for corporation tax paid by the investee company. As someone mentioned, it was related to Advance Corporation Tax (ACT) which was abolished around the turn of the century.
That refers to a company that you own and manage, that makes its money from rental income on property, and where you take out a loan in connection with that rental business. You can't just cherrypick the first sentence of 1(a) and 2 and apply it to the purchase of shares in any company. Did you read Case V of Schedule D?
No. It is not allowable in Ireland.I am not an expert. Surely margin interest within the trading account, which is deducted from dividends by the broker, is allowable as an expense against the dividends.
Otherwise, it would not be fair, reasonable, or make sense, or be even manageable.
You say you can't pick and chose sentences. Surely it is normal for one to pick and to look at the relevant section that refers to the particular issue. That is, I presume, why there are sections. If the act is currently available it must be the current version and/ or encompass any and all amendments clearly stipulated and embedded in what is available. Otherwise, it would all be nonsense and one wouldn't know what to believe.OK, but you can't pick and choose sentences and ignore all the conditions and anti-avoidance measures, and then state it as fact.
The relief was only available where you acquired a material interest (>5%) of a trading or investment company where you also spent the majority of your working time.
It was phased out from 2010.
You need to be careful looking at the TCA. It is revised by other instruments, including the finance act following every budget, so if you're looking at the original 1997 Act lots of it has been updated by now, 24 years later. I would suggest a better starting point is the Revenue guides which reflect amendments.
Thank you for your reply. I don't borrow any money at all. It is all done by the account and within the account. If the funds provided are less than the funds required they charge the account a percentage of the difference. Sometimes they refer to it as interest and sometimes as investment costs. For all, I know It might even be insurance to cover the risk. Even though I own the account I have no involvement in borrowing funds or any knowledge of it except the costs taken from the account which in effect means from the dividends.No. It is not allowable in Ireland.
There is an argument to be that it would be deductible in circumstances where your share trading meets the criteria of carrying out a trade. The threshold is extremely high for a private individual, and I would hope anyone who does meet the criteria would have the sense to seek professional tax advice.
You asked this exact question on another thread in 2019, and got the correct answer then:
Interest on borrowings..
Can you offset interest on borrowings to purchase shares against dividends received?www.askaboutmoney.com
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