Offsetting CGT on Investment bond

Bazil500

Registered User
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7
Hope someone can help.

About 2 years back I did a part surrender on an investment bond with an Insurance Company which incurred CGT of approx €1000.

I recently bought BOI shares and have lost approx €1500 having just sold them. Can I offset my recent losses against my past gain and reclaim the CGT prev paid by the Insurance Comp direct to the Revenue?

If so how do I do this - do I need to send statements proving the loss and the gain to the Revenue or is there some sort of form?
 
Unfortunately, whilst losses on CGT can be carried forward indefinitely to be set against future gains, losses can not be carried back against previous gains.

Also, are you sure that the tax paid was CGT and not an Exit Tax which is the usual way of taxing investment bonds, funds, assurance policies, etc.
 
Spot on JPD - it is indeed exit tax on the investment bond. Doh ... Does that mean I could not offset the CGT loss recently made against any future surrenders that might incur exit tax. Are they not effectively the same tax ie a tax on the growth over the original investment?
 
The information on this is not particularly clear on the Revenue web-site.

Certainly, in the case of Irish funds it would not seem to be the case. The tax is deducted by the fund manager prior to paying out the holder. In the case of the deemped redemption every 8 years, there is a provision for offsetting losses against future gains in the same fund.


For foreign funds, the taxpayer is obliged to report the any income/gains on a Form 11/12 and the gain is treated as income under Schedule D, case iii for the year in question - if my memory serves me right. However, the question of offsetting losses and gains on different redemptions in the same year - either from different funds or the same fund - is not clearly addressed.

Perhaps, you could ask the Revenue for an opinion on this if it affects you.
 
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