Sell shares to avail of yearly capital allowance

E

Eddie Peters

Registered User
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I've searched the site but didn't find an answer - except for a link to revenue.ie website that returns the message "Tá brón orainn, tá rud éigin imithe amú." As a member of the squeezed middle, I would appreciate advice if it's best to sell shares each year to avail of the CGT of €1270. It's probably a no-brainer but I failed to use the allowance for a number of years:(
 
From our illustrious founder:

"You should consider selling sufficient shares each year to use up your €1270 annual exemption. However, the tax saved is only €317.50 so make sure that it is not eaten up in stamp duty and stockbrokers’ charges. However, if you were planning on selling shares anyway in the new year, you would be better off selling them before the end of December instead.

If you have a CGT liability, can you sell any shares or other assets at a loss to wipe it out.

Unit linked funds and some ETFs are not subject to CGT on the gains. Therefore the losses on these cannot be set off against gains on other assets."
 
Anyone got further info (for dummies ;)) on what ETFs are (or are not) subject to CGT ?

Many thanks.
 
Thanks for the information.

dub_nerd said:
"You should consider selling sufficient shares each year to use up your €1270 annual exemption. However, the tax saved is only €317.50
Click to expand...

Please excuse my ignorance but why does using up €1270 annual exemption only save €317.50 in tax?
 
Eddie Peters said:
Please excuse my ignorance but why does using up €1270 annual exemption only save €317.50 in tax?
Click to expand...
I didn't write the original article, but I presume the calculation is:

gif.latex


Note it is an exemption from Capital Gains Tax of the first €1,270 of earnings, not a tax credit of €1270. So you save the rate of CGT on it. The article is using an old rate of 25%. Since Budget 2013 the rate is 33% so the saving should be:

gif.latex
 
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