CGT calculation for multiple disposal of shares

[linn]

Hi All,

I am a PAYE worker, I started buying/selling shares at beginning of this year and new to CGT. Here are some questions if any one can help:

1. I did not dispose any assets last year, I do not need to fill CG1 for 2008 which is due the end of this month(31/oct/09), is this correct?

2. I bought and sold same share around 20 times, some of them within one day, some of them within 30 days, I have sold all of my shares last week(I do not have any shares in hand now), how should I calculate the gain/loss in regard to CGT?

such as:

1st July 10am bought [email protected]
1st July 2pm sold [email protected]
1st July 4pm bought [email protected]
20th July sold [email protected]

Above just some examples, should I follow FIFO rule to calculate the CGT?

3. If I have gains from above disposals, I need to send a payment(CGT) to the tax office before 30/Nov/09, then submit a tax return for the disposals(CG1 form) before 31/Oct/2010, is this correct?

Thanks in advance!!

 

[Gervan]

If you are buying and selling that frequently, you could be seen as trading in shares, and Income Tax would be more appropriate than CGT.

 

[jpd]

Hi All,

I am a PAYE worker, I started buying/selling shares at beginning of this year and new to CGT. Here are some questions if any one can help:

1. I did not dispose any assets last year, I do not need to fill CG1 for 2008 which is due the end of this month(31/oct/09), is this correct?

Correct

2. I bought and sold same share around 20 times, some of them within one day, some of them within 30 days, I have sold all of my shares last week(I do not have any shares in hand now), how should I calculate the gain/loss in regard to CGT?

such as:

1st July 10am bought [email protected]
1st July 2pm sold [email protected]
1st July 4pm bought [email protected]
20th July sold [email protected]

Above just some examples, should I follow FIFO rule to calculate the CGT?

Yes - but there is a four week rule where losses can not be setoff against gains

Disposal of shares within four weeks of acquisition
The FIFO rules are modified in any case where shares of the same class are bought and sold within a period of four weeks. Where shares are sold within four weeks of acquisition the shares sold are identified with the shares acquired within that period. Furthermore, 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 - this provision does not apply where there is a gain on the disposal.

see http://www.revenue.ie/en/tax/cgt/leaflets/cgt1.pdf

3. If I have gains from above disposals, I need to send a payment(CGT) to the tax office before 30/Nov/09, then submit a tax return for the disposals(CG1 form) before 31/Oct/2010, is this correct?

The due dates for payment of CGT are now as follows:

Disposals in the initial period: Tax due by 15 December in the same tax year.
Disposals in the later period: Tax due by 31 January in the following tax year.

 

[linn]

That is clear, thanks a lot jpd!!