Profit on share sale- inflation rate?

L

lefty

Registered User
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I'll be selling some shares before year end at a profit (for a change!). Can someone tell me what figure I use for inflation when working out what tax I owe on my profits? Is it usually a constant figure people use?
eg.

100 shares bought at €50 each in Dec 2004
100 shares sold at €100 each in Dec 2007
Profit = €5000 (100 x 50) less charges(€75) less inflation constant(?)
Tax due €4925 x 20% =€985
 
Indexation relief was removed in 2002/2003. Any assets bought after 1 January 2003 will not attract any indexation relief.

If you bought shares before then, you will find the indexation tables at

http://www.revenue.ie/leaflets/cgt1.pdf


You say that you are selling them at a profit for a change. If you have sold shares at a loss, you can claim the losses forward against your gains.

Brendan
 
Thanks Brendan.
I incurred a loss in the previous 2 years (05/06). Is it possible to write of this loss against any profits in 2007 or does the loss have to be in the same year?
 
No - previously incurred losses can be carried fowards to subsequent years. There are rules about how they are written off though (e.g. they must be written off before one's annual CGT allowance etc. if I recall correctly).
 
ClubMan is right.

You must use your losses forward before you use your annual exemption.

Gain this year: €4,000
Losses forward €3,500
Gain before exemption: €500
Therefore no CGT is payable.

You cannot
Gain this year: €4,000
Annual exemption: €1270
Gain : €2730
Losses forward used: 2730
Losses carried forward to 2008: €770
 
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