I have some ETF shares I purchased in 2005 - 50 shares purchased for € 100 so a purchase cost of € 5,000
In 2013, 8 years had passed, so a deemed disposal event occurred.
The shares were now worth € 130 so I had a gain of 50 x € 130 = € 6,500 minus purchase cost of € 5,000 = gain of € 1,500
This was reported on Form 11 and was taxed at EXIT tax rate of 36% = € 540
In 2021, a second 8 years has passed and the shares were now worth € 170. So my gain is now 50 x € 170 = € 8,500 minus € 5,000 = gain of € 3,500
This is reported on Form 11 and now taxed at 41% = € 1,435
However, I get a tax credit for the tax paid on the prior deemed disposal in 2013 - so a credit of € 540
Does anyone know where on Form 11 you enter this tax credit?
Question: Where do I enter the tax credit on Form 11?Tax and Duty Manual 27-04-01 6 4.1.5
Calculating an 8 year deemed disposal [s747E(6)]
The taxable gain arising on the 8 year deemed disposal (the chargeable event) is the value of the units at the time less their cost of acquisition.
Dear Sir
As you have already included gain and tax paid in your 2013 return you only need to disclose the gain in your 2021 return.
The Section on the return is to include the details for 2021 is under
Foreign Income Section/Offshore Funds/Gain taxable at 41%.
Kind Regards
Dear Sir,
There is a deemed disposal and reacquisition of a material interest in an offshore fund at the ending of each period of 8 years beginning with the acquisition of the interest and each subsequent 8-year period. For the purposes of the section, the person is deemed to have disposed of his/her material interest immediately before the ending of the period and to have immediately reacquired it at market value at that time.
I cannot locate any Revenue information relating to a deemed disposal after 16 years. Each 8 year period is dealt with separately.
any comments?
Dear Sir,
The person is deemed to have disposed of his/her material interest immediately before the ending of the period and to have immediately reacquired it at market value at that time.
When the 8 year deemed disposal took place the first time, you were deemed to have reacquired them at the market value at that time.
This then becomes the value of the shares for the purposes of calculating the tax due after a further 8 year deemed disposal takes place.
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