I assumed when a stock splits no CGT is due. However I've seen a Degiro account where a the stock split was shown as a sale of one share and a purchase of five shares. The matching annual statement treats the share sale as a taxable gain - is this a mistake by Degiro or was my understanding wrong?
CGT on share split?
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Brendan Burgess
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A share split is not a disposal for CGT purposes.
Sorry, I can't find the link to it on the Revenue website.
Brendan
Sorry, I can't find the link to it on the Revenue website.
Brendan
Brendan Burgess
Founder
- Messages
- 52,181
(3) Subject to subsections (4) to (8), a reorganisation or reduction of a company's share capital shall not be treated as involving any disposal of the original shares or any acquisition of the new holding or any part of it; but the original shares (taken as a single asset) and the new holding (taken as a single asset) shall be treated as the same asset acquired as the original shares were acquired.
Taxes Consolidation Act, 1997, Section 584
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