Can I offset the losses on my wife's bank shares against gains on the sale of my UK shares

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Glammy

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I inherited some uk shares from my father which I would like to sell. My wife has Irish bank of ireland shares which will be dold st a loss. Can I offset the 20k gain from the sale of the UK shares against the loss on the sale of my wife's bank shares
 
I had assumed not this suggests that you can...

If you make a loss

This page is an explanation of how losses affect CGT
www.revenue.ie www.revenue.ie
By the way, you offset losses against gains and not the other way around.
 
Glammy said:
I inherited some uk shares from my father which I would like to sell. My wife has Irish bank of ireland shares which will be dold st a loss. Can I offset the 20k gain from the sale of the UK shares against the loss on the sale of my wife's bank shares
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Just to note that your CGT allowance is not transferable between spouses if you need to use it, relevant if the loss only partly offsets the gain. You will also need to crystalise the loss in the same tax year as the gain. I think the ownership of the assets is relevant too. If she transfers the bank shares to you, the loss will disappear (as its a gift at the current MV) but you can transfer the UK shares to her in order to offset the gain. This should be clarified.
 
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Itchy said:
You will also need to crystalise the loss before the gain. I think the ownership of the assets is relevant too.
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Why is this ? Surely if I sell share A and make a gain in June 2020 , then sell share B in December 2020 at a loss I can offset the loss on share B against the gain on share A even though I crystallized the gain first in June ? Sure it's well known in stock market investing that a lot of losing shares fall a lot towards the end of the year precisely for this reason because investors are crystallize losses to offset against gains they made earlier in the year.
 
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joe sod said:
Why is this ? Surely if I sell share A and make a gain in June 2020 , then sell share B in December 2020 at a loss I can offset the loss on share B against the gain on share A even though I crystallized the gain first in June ? Sure it's well known in stock market investing that a lot of losing shares fall a lot towards the end of the year precisely for this reason because investors are crystallize losses to offset against gains they made earlier in the year.
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I think youre correct there. I was thinking along the lines of carrying forward losses into the following year, which was evidently unclear. Edited.
 
Losses can be shared between spouses.

One spouse’s €1,270 exemption can’t be shared with the other spouse though.

Losses need to be realised before gains or in the same year (losses can’t be carried back to prior years basically).
 
What is the position in relation to cgt if I transfer shares into spouse's name, are they valued at price purhased or current valuation if sold by spouse. IE would I be liable for Cgt on transfer or would my spouse be liable and therefore we could benefit from her Cgt exemption allowance.
 
Some of the links posted already explain at least some of this.
Transfer of shares between spouses is exempt from CGT.

This old thread may also be of interest.
Some info may not be up to date though.

Transferring shares to spouse to reduce CGT

I'm thinking of transfering ownership of some shares from my name to my partner's name, to take advantage of 2 sets of CGT allowance. Does anyone know if, for CGT purposes, the transferee's share purchase price will be set at what I originally paid...or what the shares are worth upon transfer...
www.askaboutmoney.com
Sounds like you might want to transfer sufficient shares to her name that would yield a c. €1,270 gain that will be covered by her annual CGT exemption and thus save about €420 (€1,270 x 33%)?
 
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Cavanbhoy said:
What is the position in relation to cgt if I transfer shares into spouse's name, are they valued at price purhased or current valuation if sold by spouse.
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No CGT payable by Cavanbhoy in this situation. Transfer takes place at a no gain no loss - the "inter-spousal exemption" as it's known. Reference: s1028(5) TCA 1997.

Cavanbhoy's spouse takes on Cavanbhoy's original acquisition price and acquisition date for their CGT purposes. Current valuation on date of transfer is irrelevant here. Reference: s1028(7) TCA 1997.
 
AAAContributor said:
Cavanbhoy's spouse takes on Cavanbhoy's original acquisition price and acquisition date for their CGT purposes. Current valuation on date of transfer is irrelevant here. Reference: s1028(7) TCA 1997.
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Is this correct if the shares are at a loss?

According to the IT,

[in relation to shares at a loss]...if you transfer these shares to your wife, you lose the capacity to crystallise the loss and so possibly face a higher tax bill down the line.

And, as a family you could be creating another tax issue. If the shares rise in value after you transfer them to your wife, she could be facing a capital gains tax bill whereas if you held on to them yourself, you would simply be reducing your loss on the shares – at least until they return to your original purchase price.
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www.irishtimes.com

Capital losses and transfer of shares to spouse

Q&A: Dominic Coyle
www.irishtimes.com www.irishtimes.com

So on transferring the asset to a spouse its treated as a gift (free of CGT, CAT).

However:
  • If shares are at a gain - the deemed cost of acquisition is the original purchase price i.e. if they were disposed of by the spouse, CGT would be payable on the gain (Otherwise CGT would never be payable, would go back and forth).
  • If the shares are at a loss - the deemed cost of acquisition is the market value on transfer (why else would the wife be liable for a CGT bill if they rise in value?)

So effectively there is no point in transferring shares to your spouse that are at a loss (in order to offset a gain), as losses can be transferred between spouses anyway. But if you have a Capital Gain that exceeds your personal exemption (after offsetting losses), you can transfer some of that gain to the spouse (by transferring the asset).
 
Gordon Gekko said:
Losses can be shared between spouses.

One spouse’s €1,270 exemption can’t be shared with the other spouse though.

Losses need to be realised before gains or in the same year (losses can’t be carried back to prior years basically).
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Gordon

Jumping in here if that's OK.
Do you know if you can carry forward your spouse's capital losses to offset against your own capital gains in future years or can your spouse's capital losses only be offset against your own capital gains in the same tax year

Thanks
 
Curious10 said:
Gordon

Jumping in here if that's OK.
Do you know if you can carry forward your spouse's capital losses to offset against your own capital gains in future years or can your spouse's capital losses only be offset against your own capital gains in the same tax year

Thanks
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Hi,

They can be carried forward indefinitely.

Gordon
 
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