Capital Gains Tax on shares

B

Berba

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Hey,

Just wondering could anyone enlighten on how much Capital Gains Tax or any other tax for that matter i'd have to pay on shares sold, for example,

invested 1000 euro in shares at 50c and sold them for 1 euro, therefore making a profit of 1000 euro.

Also how do I go about declaring and paying these taxes considering I trade online?

Thanks alot
 
I think the present rate of capital gains tax (CGT) is 20%.
You can offset any costs involved - so broker charges etc.
Also everyone has a tax free sum before being charged CGT. I am not sure but it is something like €800.

Best place to look is the revenue site. There may also be information on the online site where you trade. Which site are you with?
If you have an accountant he would also be able to tell you.
CGT for each year is due in october each year.

This is all off the top of my head, so dont quote me on anything or take anything as gospel.
 
Thanks mattmacg

Im with davy but doesn't give fine details. Will check out revenue site, thanks
 
Hi Berba

Very interesting question did you find out anything more on this?
 
The CGT rate since October '08 is 22%. The annual CGT allowance is €1270. Have a look at the Revenue Guide to CGT as it's extremely comprehensive.
 
Berba said:
Hey,

Just wondering could anyone enlighten on how much Capital Gains Tax or any other tax for that matter i'd have to pay on shares sold, for example,

invested 1000 euro in shares at 50c and sold them for 1 euro, therefore making a profit of 1000 euro.

Also how do I go about declaring and paying these taxes considering I trade online?

Thanks alot
Click to expand...

If you bought the shares for €1,000 and sold them for €2,000 then you made a profit of €1,000. You have a personal exemption of €1,270 so no tax would be payable (assuming you made no other gains).

Gains are disclosed in the Form 11 (even if no tax is due). The payment date (if tax was payable) would depend on the date of disposal.

The current CGT rate is 22%.
 
Yea thanks lads, revenue website has it all.

22% CGT and theres a 1,270euro exemption. What are the chances of paying nothing and gettin away with it? Seriously like if i'm only making a few thousand a year what are the chances of them finding out and following it up?
And what would the consequences be if they did find out?
 
Berba said:
Yea thanks lads, revenue website has it all.

22% CGT and theres a 1,270euro exemption. What are the chances of paying nothing and gettin away with it? Seriously like if i'm only making a few thousand a year what are the chances of them finding out and following it up?
And what would the consequences be if they did find out?
Click to expand...


Had a look through revenue website, very informative and clear. Before reading these posts I had assumed that share income is liable to income tax at higher or lower rate of tax depending on income. Is capital gains tax at 22% the only liability? Liability is declared through form 11? Is it paid through CGT Payslip A& B depending on time of year when earned? And the first 1270 euro is exempt? great!

What if I make 2000 on first share trading and take out money, then lose 1000 on next share trade (and take out all money). Do I have no tax liability?
Also if I make a profit 2000 in January, pay 730 euro to tax man then make a loss (and take out money) in December, will CGT be returned to me. Sorry if question seems stupid. Also are brokers frees deductible?

Berba, you would be likely to get off scott free with small undeclared income but as with everything penelties would be very high if you happened to be audited. Personally I would not recommend but i'm far from an expert.

Thanks
 
Berba said:
Yea thanks lads, revenue website has it all.

22% CGT and theres a 1,270euro exemption. What are the chances of paying nothing and gettin away with it? Seriously like if i'm only making a few thousand a year what are the chances of them finding out and following it up?
And what would the consequences be if they did find out?
Click to expand...


I wouldnt recommend taking a risk. Chances are that you will be fine. But when you write off fees and costs of the shares, then take away your tax free exemption, you are left with 22% of that sum.
It is easy to trace money nowadays with computers, so if you are audited in 5 years time, you could end up with fines + interest etc.
I would declare it and avoid any sleepless nights.
 
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