It depends where the ETF is domiciled.am i right in saying that gains made on etf,s cannot be measured against previous investments which resulted in losses going forward ?
UK incorporated investment trusts are subject to the same CGT regime as any other publicly traded shares.is it also the case that investment trusts do facilitate previous losses which can minimise capital gains tax on the sale of funds ?
It depends where the ETF is domiciled.
Broadly speaking, US domiciled ETFs are subject to the same CGT regime as any other publicly quoted shares so losses can be carried forward. Irish/EU domiciled funds/ETFs are not subject to CGT - they are subject to a special exit tax regime.
UK incorporated investment trusts are subject to the same CGT regime as any other publicly traded shares.
Yes. The exit tax rate is 41%.the etf i have in mind is VEUR which is domiciled in ireland , so were one to invest in this etf for perhaps five years , you would be subject to an exit tax upon any sale ?
Yes. The exit tax rate is 41%.
Yes, that is a US-domiciled ETF.just checked out this etf which is listed on the nyse , it also covers the eurozone , i cannot tell if its domiciled in the usa
Yes.just been reading a thread from a while back which is related to this very topic , posters mentioned paying a 41% exit tax after eight years , is that if you sell within the eight years from when your purchased or if you hold for longer than eight , were you to sell after two years , would you still be subject to a 41% exit tax ?
Again, these funds are not subject to CGT so prior losses are not relevant.is it also the case that you cannot use any previous losses on asset sales against this 41% exit tax ?
Yes, that is a US-domiciled ETF.
Bear in mind that dividend payments made to the ETF on its underlying holdings will be subject to withholding tax. The withholding rate varies from country to country - it's 25% in Germany, 30% in France.
The ETF, in turn, will withhold (US) tax on any dividends paid to you at a rate of 30% (15% if you complete a W8-BEN). You can claim a credit for this withheld (US) tax in your (Irish) tax return. However, you can't claim a credit for the (French, German, etc.) withholding tax suffered by the ETF itself.
Well, bear in mind that you can't claim a credit for any withholding tax suffered by the ETF itself.thanks again , it appears the U.S domiciled etf is the obvious choice , the witholding tax im not worried about , can work within tax treaty rules and claim back what is due
Well, bear in mind that you can't claim a credit for any withholding tax suffered by the ETF itself.
I wouldn't agree that a US domiciled ETF is the obvious choice in every circumstance - have a look at my discussion with Fella in this regard on this thread:-
https://www.askaboutmoney.com/threads/is-it-mad-to-pay-off-a-cheap-tracker.193088/page-2
I believe most if not all ETFS with tickers starting with 'V' are vanguard ETFs. e.g. VTI, VOO etc....
These are ALL US domiciled.
are you familiar with the city of london investment trust , very long track record of dividend increases , conservative in nature , quite liquid , would you compare it favourable to one of those u.s domiciled etf,s , i realise its uk based but most of the companies operate globally
Yes, I am familiar with City of London IT. It's a high income investment trust that invests almost entirely in UK companies and employs a modest level of leverage.
Yes, that is a US-domiciled ETF.
Bear in mind that dividend payments made to the ETF on its underlying holdings will be subject to withholding tax. The withholding rate varies from country to country - it's 25% in Germany, 30% in France.
The ETF, in turn, will withhold (US) tax on any dividends paid to you at a rate of 30% (15% if you complete a W8-BEN). You can claim a credit for this withheld (US) tax in your (Irish) tax return. However, you can't claim a credit for the (French, German, etc.) withholding tax suffered by the ETF itself.
Ok thanks Sarenco.No, Vanguard also has a range of Irish domiciled funds.
Well, forum rules don't allow discussion on individual stocks but if you are looking for diversified, high yielding exposure to the UK stock market it is certainly a good candidate.