Selling a small number of shares - cgt or not?

[Stitcher]

Hi,
I researched some time back selling a small no of shares, value about €3,500. After cost there is 2,322 gain. . I thought I read that shares sold for less than 3,500 in a year are not subject to cgt but still needs to be declared but i can't find that information now. Would anyone be able to verify this? After the cgt exemtion there would be about 340 cgt to pay but I thought that this was not due if total share value was under 3,500.

 

[ClubMan]

No. The net gain after allowable expenses, previously incurred capital losses, and personal annual exemption of €1,370 (if applicable to all three) is subject to CGT @ 33%. Bear in mind the relevant filing and payment dates.

When and how do you pay and file CGT?

This page contains the steps to pay and file CGT

www.revenue.ie

Maybe you were thinking of this?

What is exempt from CGT?

This page is an explanation of what is exempted from CGT

www.revenue.ie

You do not need to pay CGT on gains from:

• ...
• moveable property (such as furniture), where the gain does not exceed €2,540
• ...

 

[Stitcher]

Thanks for that Clubman.
No, it was definitely shares as I thought at the time great, I will sell the shares in small chunks of 3,500 to avoid cgt.

I wonder if that used to be the case but is no more ? (It was years ago now when I thought I saw it first, and again last year when I was thinking of selling some shares again) .

 

[ClubMan]

Thanks for that Clubman.
No, it was definitely shares as I thought at the time great, I will sell the shares in small chunks of 3,500 to avoid cgt.

I don't understand how that's going to avoid CGT?

 

[Stitcher]

Wishful thinking maybe!
If I figure it out I'll let you know

 

[cloughy]

Sell some this year and some next, so use each annual exemptiom

 

[Reick]

1270 is the limit for a single person.......
If you are below that, do you still have to pay any gain, example, 1000 eur, before Nov 15th and then claim that back, or you just don't make any payment, and file just the details next Oct/Nov?

 

[ClubMan]

1270 is the limit for a single person.......
If you are below that, do you still have to pay any gain, example, 1000 eur, before Nov 15th and then claim that back, or you just don't make any payment, and file just the details next Oct/Nov?

You have to pay and file as per the deadlines in the link that I posted already.

The €1,270 exemption is per individual per year. If your gain is less than or equal to €1,270 then you have no CGT liability but still need to file a return.

To be honest, I don't really understand your question.

 

[BrianS]

You have to pay and file as per the deadlines in the link that I posted already.

The €1,270 exemption is per individual per year. If your gain is less than or equal to €1,270 then you have no CGT liability but still need to file a return.

To be honest, I don't really understand your question.

If the shares are held in a joint account i.e spouse you should both be able to claim relief therefore 1270 x 2 I believe…

 

[Reick]

You have to pay and file as per the deadlines in the link that I posted already.

The €1,270 exemption is per individual per year. If your gain is less than or equal to €1,270 then you have no CGT liability but still need to file a return.

To be honest, I don't really understand your question.

The question is whether one must pay the gain for the period; and then seek a refund after the tax year to account for the exemption.

 

[ClubMan]

The question is whether one must pay the gain for the period; and then seek a refund after the tax year to account for the exemption.

What do you mean by "pay the gain"?

 

[torblednam]

What do you mean by "pay the gain"?

I think they mean pay CGT calculated on the basis that there's no 1,270 allowance, and then get a refund when they file their return and get the benefit of the exemption.

The answer to which is no, you calculate what you owe net of the 1,270 allowance.

 

[Homepayer]

Just sell enough shares this year that your gain is less than €1,270. Then do the same in January. You don't have to pay and get a refund. But you should fill in the forms and send them to revenue.

 

[Stitcher]

Thanks all, I have done that now and will do again in January.