CGT Exemption & Losses

[Daniel]

Hi,

Quick question on the annual CGT exemption of €1270 and carrying forward capital losses.

Say I sell shares and crystallise a loss of €1500, so together with the CGT exemption I can now make a gain of €2770 tax free that year if I have other shares that are in positive growth territory and I want to sell them.

Say I do, then later on in the year I sell shares and realise a gain of €2300. So I still have €470 of an exemption remaining.

So I know that the annual CGT exemption of €1270 cannot be carried forward, but that capital losses can be. Can I use the €1270 exemption together with €1030 of my capital loss to cover the gain of €2300? Then carry forward the unused remaining capital loss of €470?

Or would Revenue look at it the other way and say that all of the capital loss is being used to cover my gains, along with €800 of the CGT exemption, then given that I can't carry forward the CGT exemption the remaining €470 is then lost for the year.

Hope this make sense.

Thanks,
Daniel

 

[Joe_90]

It’s option b losses first then exemption.

 

[Daniel]

It’s option b losses first then exemption.

That's kind of what I was thinking alright, thanks a lot Joe.