The €10k transferred to Ireland would be subject to 33% CGT.
It’s a mixed fund, basically.
based on Revenue documentation
5.6. What is the position if a remittance is made from a ‘mixed’ fund account?
Any remittances out of an account containing capital and income are treated as first
coming out of the income part of the fund until such income is fully remitted (see
the tax case of Scottish Provident Institution v Allen – 4 TC 409).
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The idea is that the princible amount was already taxed at 52% (income), what is the best way to get that amount without taxation (like if you sold the shares right away without gain/losses)
Thanks, this is really helpful.I maybe wrong but I think it is possible if you can work with the broker to prevent it becoming a mixed income/capital fund in the first place. ie once you own the shares, the dividends from the shares are paid into an income account within the broker account. You then have a clear split of capital and income. (of the capital some is original capital and some is capital gain, but its all capital. )
When you then sell the shares you could spend the capital gain abroad - holidays etc, or remit it for some of the reasons that are tax exempt. You can then remit your original 10k capital back tax free.
I know you talk in examples of 10k because you don't want to divulge the total amount, but if its significant, and you have other non-dom investments etc its definitely worth getting professional advice here as these things are always far easier if set up properly from the beginning and then the right trail kept to demonstrate why its not a mixed fund etc. I am fairly sure what you are asking isn't impossible (basically how do you avoid the full 33% CGT on the gain) but it is by no means simple either.
Yeah its definitely not even as simple as your 1st paragraph above. I've read up a little more and edited my post accordingly. If its a sizeable amount definitely seek advice. If its smaller amount just use it for foreign holidays!!!Thanks, this is really helpful.
in my case, I dont have dividends. so if I sold the shares and stayed in my broker account they are all capital (+ gains) .. So not sure if it will be treated as mixed funds if it is all capital and it is very easy based on transactions document to seperate this 10K is capital and the other 10K gains but I might be wrong.
The logic for this one I think is more related to non-dom tax treatment and remittance basis not the shares I think.
Are there any recommendation for tax advisor / professional to help with this in Dublin?
Thanks.
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