CGT Question on Shares

[mimes]

Hi There,

Silly question of the day but looking for some clarification.

If I purchased 50 shares for 1k and these are now worth 2k.

If I sell 1k worth of these today (25shares) do I need to pay CGT on this sale ?

Thanks for your feedback in advance,
m

 

[Gordon Gekko]

Yes, but no.

You bought 50 shares at €20 a pop.

You’re selling 25 shares at €40 a pop for €1,000.

So the base cost for those 25 shares is €500.

That’s a €500 gain.

But it’s below the €1,270 Personal Exemption, so no CGT.

 

[ClubMan]

But, as far as I understand, you still need to file a return even if there's no taxable gain.

When and how do you pay and file CGT?

This page contains the steps to pay and file CGT

www.revenue.ie

 

[mimes]

Yes, but no.

You bought 50 shares at €20 a pop.

You’re selling 25 shares at €40 a pop for €1,000.

So the base cost for those 25 shares is €500.

That’s a €500 gain.

But it’s below the €1,270 Personal Exemption, so no CGT.

Thanks, i should have mentioned assuming the 1270 has been exceeded..

I guess the answer is yes so thanks for clarifying.