Jimmy2times9999
Registered User
- Messages
- 27
The latter.
Yep.Even when cashed in before 8 years is up?
Even when cashed in before 8 years is up?
That's a pain!
Yep.
The tax after 8 years is called deemed disposal i.e. it's not an actual disposal but you calculate the tax due at that time. If you cash in before that, it is an actual disposal. All transactions will have a different profit, so separate calculations have to be done to see what those profits are. If the monthly investment amounts are small enough, you are better off investing through an insurance company and they will look after the tax for you.
Steven
Is it 41% exit tax on the total profit in the 7 years?
Or
A separate calculation for each month (84 calculations (7*12))?
So, an unrealised gain is taxed , well that's ........... how can this be justified?The tax after 8 years is called deemed disposal i.e. it's not an actual disposal but you calculate the tax due at that time. If you cash in before that, it is an actual disposal. All transactions will have a different profit, so separate calculations have to be done to see what those profits are. If the monthly investment amounts are small enough, you are better off investing through an insurance company and they will look after the tax for you.
Steven
www.bluewaterfp.ie
These are the same. The total profit over the 7 years is the profit on each of the individual purchases over the 7 years added together. This amount will be calculated by your broker when you sell so its really not that complicated.
How exactly is it different?The calculation isn't the exact same though
The point is you have to track the price at which you purchased and sold each individual batch of shares (less commissions), which is an administrative nightmare.The total profit over the 7 years is the profit on each of the individual purchases over the 7 years added together.
Brokers don’t do their clients’ tax calculations.This amount will be calculated by your broker when you sell so its really not that complicated.
This is a really bad idea
You have to file a tax return annually for each purchase as well as track the gains on each contribution separately
Our analysis indicates that a life company regular saving plan with a high equity content makes sense for small regular savings once you have prioritised and maximised pension contributions and debt repayment
How exactly is it different?
After 7 years, isn't the total profit the sum of the profits on your monthly investments over the 7 years?Aren't each potential ETF monthly purchase treated seperately for tax reasons?
If it was a 41% cut off the total profit after 7 years I'd be chuffed btw!
After 7 years, isn't the total profit the sum of the profits on your monthly investments over the 7 years?
Sorry, I must be missing something really obvious.
Brokers don’t do their clients’ tax calculations.
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