Comparing 1% a year with Deemed Disposal and IT/CGT

yellowmoose said:
CGT revenue did increase when the rate dropped previously
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Economically I’d say this is just viewed as a phasing thing where you accelerate disposals that would have happened later with a lower rate. Could be something you’d look at as a short term boost (which we definitely don’t need right now) but long term you’d imagine it would erode it.

If you really wanted a CGT rush, you could just announce it’s going up in 36 months and you’d have a bumper few years!
 
Zion2022 said:
Economically I’d say this is just viewed as a phasing thing where you accelerate disposals that would have happened later with a lower rate. Could be something you’d look at as a short term boost (which we definitely don’t need right now) but long term you’d imagine it would erode it.
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not entirely. If you take M Martin's own example (and presumably he is seeing evidence of this) - business owner moves to low/no tax jurisdiction before company sale event because of the perceived high CGT rate. Ireland gets zero tax revenue from the sale. If CGT was at a rate perceived to be low - say 20% - there's a good chance the owner stays in Ireland - Ireland gets 20% of the gain. M&A activity in Ireland was circa €20 billion last year so potentially significant sums.
 
Savvy said:
Checking KID and there is also transaction costs of .05%, so .12% all in. That's still a great TER for an All Country index
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That is quite cheap for the sheer simplicity of it. However, I imagine the cost doesn't vary too much if someone wanted more flexibility with regards to geographic spread and chose their own allocation based on a selection of ETF's.

For example, ETF's tracking the S&P 500, which makes up approximately 50% of the WEBN value, can be had for 0.03%. It's also quite easy to find very low cost European and UK large cap ETF's - allowing you to pay more, if you so wished, for the smaller cap, or more niche country, ETF's.

However, it'd take a lot more research and care would need to be taken with regards to domicile of the ETF's as well as bid-ask spreads.

Personally, I'd be more likely to go for two ETF's - this worldwide one and then a European one to reduce the US exposure and add a little home-bias.
 
Yes @Zion2022 it appears after around 11 years according to my calculations and etf with 33% CGT and no deemed disposal beats this new Swedish scheme, I have quickly now lost interest in this scheme, and my hope now lies in removing deemed disposal and 33% CGT for ETFs That is at least actual progress
 
Zion2022 said:
This is huge news. If they proceed with dropping deemed disposal
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Based on these comments from Harris, I wouldn't get your hopes up.

“I do think the deemed disposal issue is posing a real challenge for Irish investors,” he said.

“And I do think the policy rationale for now is questionable at best, and I would like to see further progress.”
 
SIA scheme would be worth it for the simplicity - for both retail investors and revenue. Most retail investor rely on saving accounts (almost zero interest), life companies (heavy maintenance charges) or pay accounts (exorbitant fees) for calculating CGT.
 
@bish123
We ask for so little, if simplicity is all we desire.
Surely as users of this forum we care more about how beneficial it is monetary wise to us.
Maybe I'm very cynical, but it's very dissapointing this is the best "reform" they could come up with.
 
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