CGT gain, previous loss and personal allowance on stocks

[RiceCakes]

Cannot seem to find clear documentation on this so hoping someone can clarify the treatment of this.

For symplicity, say I have €1000 losses selling shares last year and submitted that to revenue in October and no issues with that.
This year i've been lucky enough to make €1000 selling shares.

Can I carry forward my last years losses to next year and offset my €1000 gains against my personal allowance for this year (€1200) instead?
Or ALL gains must be offset against previously carried forward losses FIRST before the personal allowance.

Obviously I'd rather carry forward my losses if possible, can anyone clarify for me please?

 

[Gordon Gekko]

You have to use losses first as I understand it.

 

[RiceCakes]

Thanks Gordon, was afraid someone might say that!

 

[DB74]

Losses must be used first

I can't find the Revenue guidance though sorry

 

[DublinHead54]

Losses used first! Can't find guidance either but my accountant has done it that way.

 

[AAAContributor]

Obviously I'd rather carry forward my losses if possible, can anyone clarify for me please?

Paragraph 1.1 sets out the position and confirms the above replies:

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-19/19-07-01.pdf

 

[joe sod]

Cannot seem to find clear documentation on this so hoping someone can clarify the treatment of this.

For symplicity, say I have €1000 losses selling shares last year and submitted that to revenue in October and no issues with that.
This year i've been lucky enough to make €1000 selling shares.

Can I carry forward my last years losses to next year and offset my €1000 gains against my personal allowance for this year (€1200) instead?
Or ALL gains must be offset against previously carried forward losses FIRST before the personal allowance.

Obviously I'd rather carry forward my losses if possible, can anyone clarify for me please?

If you want to use losses and also make use of 1200 euros allowance you could always sell off more shares that are in the black to value of 1200 +1000 euros this year. Then buy them back again, not sure if the 4 week waiting period applies in this case though. That way you have carried forward your loss and also used up the allowance

 

[Corolla]

Then buy them back again, not sure if the 4 week waiting period applies in this case though.

The 4 week waiting period doesn't apply as you are realising gains, you can buy them back immediately.

It would apply if you were realising losses and wanted to buy them back.

 

[Craig_David]

I understand that capital losses cannot be offset against capital gains across ETF products.
But what about ETNs and ETCs? I did find this document from revenue (https://www.revenue.ie/en/tax-profe...tion-tax/part-27/27-01a-03-20201001155445.pdf)
Paragraph 5 states that the general taxation principles apply for ETCs but I dont see any reference to ETNs?
Would anyone know?

tnx

 

[Corolla]

An ETN is like a promise from the issuer to pay you when the underlying assets increase in price, whereas an ETF is like owning a share of the underlying assets.

Since ETNs are debt instruments, not funds, then general taxation principles apply.

 

[Maltaff]

An ETN is like a promise from the issuer to pay you when the underlying assets increase in price, whereas an ETF is like owning a share of the underlying assets.

Since ETNs are debt instruments, not funds, then general taxation principles apply.

A (kind of) related question re ETF's. I believe some U.S. ETFs are still treated under GCT rules. I acknowledge that to be able to buy these one has to have Professional Status with your broker. Is anyone aware of any that qualify? Seems strange that we are encouraged to focus on single stocks rather than on a more risk-balanced ETF.