S
It seems to me the ordinary tax free allowance should
apply for CGT! Is there anything I can do about this
anomalous situation?
Regards
Michael
If you are married then see here:yet, apart from the miserable EUR1270 allowance
I'm still paying 20% capital gains tax on my share
sales.
Hi Stylite
There isn't much you can do. You won't pay any income tax on the dividends you receive on the shares.
From a planning point of view, you could have bought shares with higher dividends and lower expected capital gains.
Did you make any losses when you closed the business? Could these be classified as losses of capital and so set off against the gains?
Brendan
I agree with you. Income should be income regardless of where it comes from.The idea of an allowance
is that a person can get a certain amount of money before
paying tax on it. What I was saying was that someone should
be able to use the same allowance towards either income or cgt.
I don't mind paying tax; I do mind paying tax on everything I
get about a paltry EUR1270, especially when I'm not claiming
anything from the state.
What I was saying was that someone should
be able to use the same allowance towards either income or cgt.
Really? I always assumed that somebody who was exempt from income tax would remain so as long as their dividend income did not push them into the tax net and they could also reclaim DWT.Just remember that dividends of Irish companies will be distributed after the deduction of Dividend Withholding tax (DWT) of 20%. There are only a very limited amount of individuals who can claim tax exemption on these - having a low, or even no income will not qualify for DWT exemption.
As you cant change the system but instead need to work around it , is it possible you can make gifts of shares within the gift threshold to a relative(s) who could sell them, and gift back his profit to you (within the gift threshhold) ? I think you could do this with a number of relatives and its perfectly legal.
If you gift shares to a person, you are treated as if you have sold them for their market value on that date and subject to CGT on the deemed gain.
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