Query on investment taxation

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pobber1

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Hi all,

I want to setup a savings account for my kids. I have been looking at Zurich's saving products and the related tax implications.
I have a large capital loss from the sale of a property. Am I correct in saying that I can't use that capital loss to offset the exit tax on an EFT?

If that is the case, what is the best way for me to utilise that capital loss? Is buying individual shares the only way?

Thanks
 
Firstly you are right in saying that ETFs aren't relevant against your loss - they are taxed at 41% exit tax and not CGT.

The best way to utilise that loss can't be answered without a heck of a lot more detail (the answer could be forget the loss, over pay your mortgage and up your pension might still be the right thing to do!). Having a previous loss to be able to offset any future CGT against is one factor amongst many others that should decide your future investment strategy.

If your question is which investments are subject to CGT in Ireland and not Exit Tax then as you say individual shares, individual shares exposed to more than 1 company (eg Berkshire Hathaway), Investment Trusts (City of London CTY, Scottish mortgage etc) Land, Buildings, Currency, Gold, Antiques, Paintings etc.
 
If you buy a basket of shares or a conglomerate like Berkshire Hathaway , they are all subject to CGT, any capital gains on those can be offset by your capital loss on property. Therefore ETFs or funds subject to exit tax I would stay away from normally but especially in your case with a capital loss to harvest
 
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