Sure, this was overly simplified to make the figures round. A real work example from an ETF I had of Purchase 1: 36, Purchase 2: 37, Purchase 3: 40, Purchase 4: 42, Purchase 5: 40, Purchase 6: 37, Purchase 7: 34, Purchase 8: 32, Purchase 9, 30 and the current price of 36 is a whole lot more complex to get the point across.You would be extremely unlikely to find buying prices following that pattern - well, apart from Jan 2020 - May 2020and still be under water in 8 years time
Thanks for this. Based on your logic, the -100 gets treated as nil and the deemed disposal is 300 for tax purposes in year 8. The example was based on 100 units in each purchase to simply things down for the loss relief part.I posted a spreadsheet I am using in in earlier thread:
ETF Tax Tracking SS | Askaboutmoney.com - the Irish consumer forum
After you max your pension, and mortgage interest is so low, what else are you going to do?Its real simple - dont invest in ETFs if you want tax efficient investment solutions,
otherwise stick to pension contributions.
Each purchase is treated separately for the 8 year rule. No averaging prices, no offsetting losses. 41% tax on exit and income.
Govt / Revenue tax position is not going to change. These products are perceived as being for wealthy investors.
They dont want the Insurance / pension industry harmed.
I am in a position that I can influence and lobby on such matters. I worked the Irish Funds Industry Association.
Its a waste of time.
After you max your pension, and mortgage interest is so low, what else are you going to do?
4.1.6 Losses on the disposal of an interest [s.747E(3) & (4)]
Trading losses or other Case IV losses cannot be used to shelter any income chargeable on the disposal, or deemed disposal, of an interest in an offshore fund [s.747E(4)].
Where a loss arises on the disposal of a material interest in an offshore fund, no CGT or other loss relief is available [s.747E(3)].
Will this do?
Yes.....I see what you mean in respect of monthly purchases. In theory, a loss would be concealed within an overall fund appreciation,( assuming same). But maybe if you're buying the same ETF over 12 months and letting it run for a number of years , say 8, an overall fund loss would be more likely than perhaps a negative return on a monthly purchase after 8 years.if you dispose of all the shares at the same time, then the total gain will be the same as long as the selling price is above all of the purchase prices.
But if the purchase price of some of the monthly purchases is higher than the selling price, you have made a loss on the shares purchased in that month - and as I understand, this loss can not be offset against the gains made by the other purchases.
This would assume that the investment had made little gain over the period.