double losses?

L

last active

Guest
I am trying to sort out CGT for First Active shares now. These are in my name only.
I had shares in Eircom held jointly with my wife. On one lot of Eircom shares my name was first and then hers; and on another lot of Eircom shares my wife's name was first and then mine; Can I use the loss from both of these holdings to lessen the CGT due on FA?? Can this loss get multiplied by the inflation multiplier?
It is very difficult to make contact with the phone numbers given in the Revenue letter. Are they not answering? Is about time all these tax rules were simplified!
 
Only losses in the name of the FA sh> I am trying to sort out CGT for First Active shares now. These are in my name only.
I had shares in Eircom held jointly with my wife. On one lot of Eircom shares my name was first and then hers; and on another lot of Eircom shares my wife's name was first and then mine; Can I use the loss from both of these holdings to lessen the CGT due on FA??

No - only losses in your own name can be used. Note that the losses must be set against the FA capital repayment in 2003 - before the 2003 annual CGT allowance of €1270 can be applied - and only the remainder (if any!) carried forward to be offset against the takeover payment. Capital losses are not transferrable even between spouses. If the FA shares were in your joint names or split between you then you could use some or all of your wife's capital losses.

> Can this loss get multiplied by the inflation multiplier?

No - capital losses cannot be increased through application of indexation multipliers to the acquisition price. Indexation only applies when calculating a capital GAIN.

> It is very difficult to make contact with the phone numbers given in the Revenue letter. Are they not answering? Is about time all these tax rules were simplified!

For what it's worth this type of query has been asked several times in different guises here on AAM so if you have a read of the other related topics it might be of assistance.
 
spouses can avail of unused losses of the other spouse though of course they cannot both take relief for the same loss.
 
> spouses can avail of unused losses of the other spouse

Really? I didn't realise that. Thanks for the clarification...
 
lointly assesed

What happens if you are jointly assessed ? Can you claim wifes CGT allowance for FA shares ?
 
lointly assesed

No. Married taxation only applies to income tax. It is irrelevant to CGT. The annual personal CGT allowance of €1270 is not transferrable. A married couple can only use both of their allowances if the shares are held in joint names or obviously in each of their individual names.
 
re

I had First Active shares. I have a CGT bill to pay. My wife and I had Eircom shares held jointly. My wifes name was first on the share cert. Can I use the loss on these Eircom shares to reduce the cgt on F.Active?
 
re

Yes according to Capall's post above.

Note that eircom losses must be set against the 2003 FA capital repayment first (and before the 2003 annual CGT allowance of €1270) and only any remainder used against the 2004 takeover payment.
 
re

You dont have to set Eircom losses against the 2003 FA capital repayment first if you have sufficient attending losses which are greater than the 2003 repayment. It doesnt matter when you use Eircom losses if the attending costs are greater than 2003 repayment. You can see this in some of the examples in the Revenue website.
 
re

Sorry - I don't understand the term "attending losses". However, I was assuming the case of shareholders who have no previously incurred capital losses other than eircom which, I'd imagine, is the common situation. In this case the eircom losses must be offset against the 2003 capital repayment.

[broken link removed]

Obviously if there are other previously incurred losses then these can be used up before or after the eircom losses.
 
You must log in or register to reply here.
Back
Top