CGT question

[dublin dude]

I am currently selling an investment property that will realise a significant gain. I had sold some Bank shares at a significant loss a few years ago and hoped to use that loss (carried forward) to offset some of the gain on the property sale.

Somebody has suggested to me that I cannot apply a loss on a different asset class (i.e shares) against a gain on property. If true, this could have severe ramifications for me particulary at the new / higher rate of CGT at 33%.

I was pretty sure that I could offset the capital loss on the shares against property but now beginning to doubt myself. I would welcome any informed views on the topic please. I could not find a definitive answer in the Revenue published guidelines either so would like to bottom out the question / answer before concluding the deal and my CGT return.

Apologies if this has been answered elsewhere previously but I could not find it from my search of the site.

Thanks in anticipation.

 

[Joe_90]

Somebody has suggested to me that I cannot apply a loss on a different asset class (i.e shares) against a gain on property.

Did you ask them to clarify?

Unless you sold the shares to a conected person there is no restriction on the loss against different classes of assets.

 

[Palerider]

Not aware of any restriction, assume you had details of this investment purchase and share purchases / sales etc on past tax returns, if not you should have.

 

[dublin dude]

Thanks for inputs guys.
The shares were sold on the open market / normal disposal transaction so nothing unusual there. Yes, I have included the details of the share sale / capital loss and had it recognised by Revenue in a tax return two years ago.

I also include / disclose details of the investment property rental income and expenses etc over many years so that is all above board and legit also.

I am encouraged by your responses that seem to validate my position / thinking. Thanks again.

 

[T McGibney]

Once the sale completes (and preferably beforehand, if feasible), consider getting proper professional tax assistance with the calculation of your liability and compliance with Revenue payment & filing requirements. Once the sums involved are significant, even minor issues or omissions can have correspondingly significant consequences.