CGT strategy. Good or bad

D

dublinaam

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Hi,

If I was to sell units in a S&P 500 index to realise a CGT gain of €1,270 and use my annual alowance can I purchase a similar S&P 500 index to ensure I do not lose out time in the market?

Any advice would be very much welcome
 
Using up one's annual personal CGT exemption and any previously incurred capital losses is obviously prudent tax planning, but only if the investment asset in question is subject to CGT tax treatment in the first place. That's not the case for many/most ETFs or unit linked investment funds in which context the question is moot.
 
In that case it's likely to be subject to 38% 8 yearly deemed disposal and exit tax and not CGT. But it depends on the specific ETF.

Making use of CGT allowance with ETFs

Hi, Is a sensible way to maximise CGT allowance be to sell position once €1,270 gain is made and then rebuy at higher rate?
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I think your plan is known as the 'bed and breakfast's trade done at the end of the tax year to avail of exemptions while effectively remaining invested. Perhaps you could invest separately in some individual stocks in order to do it. The exemption could be seen to offset some of the extra risk involved
 
So the Bed and Breakfeast rule does apply on online platforms? When it's CGT rather than deemed disposal.
 
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