Key Post Capital Gains Tax on sale of shares

boltownes

Registered User
Messages
46
Brendan asks this question in his first post - "It is better for married couples to own shares in their separate names to avail of the personal exemption. (Is this correct?)"

It seems a real nuisance to have to set up separate accounts and be charged double the maintenance fees by brokers. Any views appreciated.
 

jpd

Frequent Poster
Messages
1,698
If the shares are held in a joint account, then you can avail of 2 x personal exemption
 

Dman35

Frequent Poster
Messages
46
Hi

Looked through the thread but didn't really see my below questions answered.

I believe you are permitted to receive €1250 in share gains before you capital gains pay tax in a calendar year. If you crystallise a lost in that yr on the share sale do you have to use all that in the yr before you use your allowance I..e

2017
Profit in Share Sales = 2500
Losses in Share Sales = 2000

2500 (Profits) - 1250 (allowance) = 1250 due to Capital gain tax, however due to crystallises losses of 2000 - Tax due = 0 and 750 losses rolled in 2018 to be applied against any profits.
OR
2500 (Profits) - 2000 (Losses) = 500 due to Capital gain tax, however due to allowance of 1250 - Tax Due = 0, however nothing rolls in to 2018

Hope the above makes sense.

Tks
 

rob oyle

Frequent Poster
Messages
585
Hi
Looked through the thread but didn't really see my below questions answered.

I believe you are permitted to receive €1250 in share gains before you capital gains pay tax in a calendar year. If you crystallise a lost in that yr on the share sale do you have to use all that in the yr before you use your allowance
Yes, your losses must be used before the annual exemption (which is for gain of €1,270 in any one year). In your example, the losses wold be all used up in the current year and €500 of the annual exemption would mean no tax liability. However, there would be no losses to carry forward against potential future gains.
 

agaleg

Registered User
Messages
1
Hi guys,

I have a query related to capital gain tax. After selling my shares the total capital gain (minus sale cost) was €285. When I deduct the personal exemption of €1207, I get €985- can I use it as unused loss for carry over to 2017 in form 11?

Thanks,
A.
 

Gordon Gekko

Frequent Poster
Messages
3,653
No, you can't.

You just have no CGT to pay.

The unused portion of the personal exemption cannot be carried forward.
 

Billy Baltic

Frequent Poster
Messages
43
I have read that transfer of assets between spouses are exempt from CGT. Can that be applied as follows:
Partner 1 has shares which have appreciated from 10k to 30k.
Partner 1 transfers shares to partner 2 with no CGT applicable.
Partner 2 disposes of shares for 30k. Since Partner 2 has not made a gain (asset received at 30k and sold at 30k) then no CGT applicable on sale?

I suspect I know the answer but I live in hope ........
 

rob oyle

Frequent Poster
Messages
585
I have read that transfer of assets between spouses are exempt from CGT. Can that be applied as follows:
Partner 1 has shares which have appreciated from 10k to 30k.
Partner 1 transfers shares to partner 2 with no CGT applicable.
Partner 2 disposes of shares for 30k. Since Partner 2 has not made a gain (asset received at 30k and sold at 30k) then no CGT applicable on sale?

I suspect I know the answer but I live in hope ........
Spousal transfers can't be used to evade a CGT liability, otherwise it would be open to major manipulation. In these cases, one spouse 'steps into the shoes' of the other and the acquisition date/price is the original one.
 

Billy Baltic

Frequent Poster
Messages
43
Spousal transfers can't be used to evade a CGT liability, otherwise it would be open to major manipulation. In these cases, one spouse 'steps into the shoes' of the other and the acquisition date/price is the original one.
Thanks Rob. One mans manipulation is anothers tax avoidance.
 

Dman35

Frequent Poster
Messages
46
Hi
I've read through this thread and haven't really got the answers to my questions.. As I'm new to this apologise in advance for the noddy type questions.

Re Capital Gains -
I sold a small holding of shares this yr (2017) and the profit I made is just under the personal allowance of €1250 - So do I need to log this with revenue?
If so how do I do this and when does it need to be done by?

Tks
 

Taxpert

Registered User
Messages
45
Hi guys,

I have a query related to capital gain tax. After selling my shares the total capital gain (minus sale cost) was €285. When I deduct the personal exemption of €1207, I get €985- can I use it as unused loss for carry over to 2017 in form 11?

Thanks,
A.
No.

Use it or lose it in the same year.
 

WinnerAlright

Registered User
Messages
4
I made a Capital Loss in tax year 2010 but, due to ignorance of the tax system, did not declare it. Can I declare this now so I can offset gains against it or is it too late?
 

garbanzo

Frequent Poster
Messages
29
Looking for a bit of guidance on CGT. We inherited a sum and paid Revenue €2k in CGT last year. I unfortunately lost €5k on shares i bought in Anglo Irish Bank back in July 2007......I know, timing ouch !

Can I use this €5k loss to set against that CGT payment and look to claim this €2k CGT back from Revenue? Or is it too long ago being nearly 11 years ago. I never sold the shares so never actually crystallized the loss. But it is a matter of record they are worthless. They were suspended on the ISE in August 2009 and ultimately wound up around 2014.

I guess the core questions are a) how many years can you carry a loss and b) has anyone had success in doing so with Anglo shares?
 

RedOnion

Frequent Poster
Messages
3,263
I guess the core questions are a) how many years can you carry a loss and b) has anyone had success in doing so with Anglo shares?
At the moment you can carry the losses forward indefinitely. You can make a negligible value claim.
https://www.revenue.ie/en/tax-professionals/historic-material/ebrief/2009/no-762009.aspx

If you've never registered the loss, you should to ensure its not lost. Just do a CGT return recording the loss, and then Revenue will have the details.

However the tax you paid on inheritance wasn't CGT but CAT, and therefore the 2 can't be offset.
 

garbanzo

Frequent Poster
Messages
29
Appreciate the prompt reply RedOnion. That link is very helpful.

I get that you can’t (unfortunately) offset CAT and CGT against each other. Just to be clear, we incurred a CGT liability as a property had appreciated in value following the death of the person and it achieved a higher price. That was why we had to pay CGT.

I shall contact Revenue with reasonable confidence so.
 

RedOnion

Frequent Poster
Messages
3,263
Normally you have to have made the loss prior to, or in the same year as, the gain in order to offset.
I'm not sure with a loss on Anglo shares if you could back date the negligible value claim. Definitely worth asking though.
 

1stimebuyer

Registered User
Messages
11
Hi Guys,

I'm searching for a concrete indication of my tax liabilities for shares I have cashed out recently. I don't believe my scenario to be typical.

I was gifted shares in my company in 2014 at a fixed price with no obligation to buy
I was given 5 years to decide what to do with the shares - If the shares didnt go up in value and I didnt act they expired
Shares did go up and I exercised the option to cash out the shares this month. As part of the exercise transaction I only recieved the profit from the difference of the share price and didnt have to pay for the gifted shares.
My company are not assisting with the tax liability and I am not sure how I declare these or what is taxable.

I have seen CGT on profit at 33% with a profit allowance of 1250 in some places and taxed at the the income tax rate in others.

Can anyone point me in the direction of the form and how I declare.
 

RedOnion

Frequent Poster
Messages
3,263
. I don't believe my scenario to be typical
It's very typical. You had a share option.
It's not clear from your post what type if share plan you had, or if it was Revenue approved.
The difference between option price and market value at date if exercise is subject to income tax unfortunately.

More info here, including details of forms. You might find more info about your options that will tell you which yours fall under
https://www.revenue.ie/en/additional-incomes/employment-related-shares/index.aspx
 
Top