Hello All,
Looking for some clarification on the following points from anyone with experience in these matters:
1. Vanguard Total World Stock ETF
https://institutional.vanguard.com/iippdf/pdfs/FS3141R.pdf
As far as I understand, Capital Gains Tax (33%) is the applicable rate on any gains, and not the rate applying to Offshore Funds (41%). I also presume that the quarterly dividends on this fund are subject to income tax + USC + PRSI and not the Offshore Funds rate of 41%. Am I correct on these assumptions?
2. iShares STOXX Europe 600 UCITS ETF (DE)
As far as I understand, losses on this fund cannot be offset against gains elsewhere in an investor's portfolio. However, what I am unclear on is intra-fund tax accounting. I have seen elsewhere on another thread, a poster imply that each and every investment in a single UCITS fund is treated as a discrete investment and units sold at a loss cannot be offset against units sold at a profit. This was contradicted by another poster (apologies I cannot locate the thread). I just want to be 100% clear on this point. Take this example:
Buy 1,000 units @ €36.00 =€36,000
Buy 1,000 units @ €37.00 =€37,000
Sell 2,000 units @ €36.75 =€73,500
Net Profit =€500
Tax on Gain =€205
If each purchase is treated as a discrete investment for tax accounting, that would mean the units purchased @ €36 would realise a gain of €750, attracting tax at 41% of €307.50. This works out at a tax rate of 61.50% relative to the net profit. I presume this is absurd but would like to be 100% clear just in case.
3. Deemed Disposal
If an investor pays tax to Revenue under the 8th year anniversary rule via the self-assessed tax route (Form 11), and subsequently realises a loss on the eventual sale, what is the procedure for seeking a rebate? Does anyone have any experience on this? Assume the investor is using ETFs and not life products where this is handled by the provider. Is there a specific rebate form to be filled out or does Form 11 have a section to offset this amount against tax due in the particular year?
I am sure these queries are addressed in the Tax Manuals on the Revenue website but the relevant ones have been down for awhile due to updating.
Thanks for your help.