Tax on Government and Corporate Zero Coupon Bonds

G

GalwayBay

Registered User
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Hi, I bought several German Government Bonds and Apple ( Corporate) Bonds in 2023/24 and these matured in 2024/25 ( held for approx 8 months). There was no interest on these bonds where I bought at a small discount to par. Am I right in assuming that any gain, for example Bought for 10k, redemption at 10,200 will be subject to income tax in Ireland ( on the 200 euro) as these are zero coupon bonds? Please advise, thank you
 
The gains are taxable as capital gains - there is no income so no income tax is due
Don't forget you have an annual tax-free allowance of € 1,270 - anything over that is taxed at 33%

Tax is due by mid December is the redemption date is between Jan 1st and Nov 30th, otherwise by mid Jan
 
Thank you guys. Yes, I read the above thread a few times. Both sides have valid points from what I read and all I wanted was perhaps reassurance as there is literature in the Fiance act about Zero coupon securities, which seems to mention an income assessible event, albeit is it complex!! Thank you all
 
Another question, as you guys are very strong on these topics and I am learning and I really appreciate the FB. On the Form 11 in ROS, if I bought bonds in a tax year, where do I state the amount and number in the Chargeable assets acquired in a tax year section? It does not state bonds in this section, only a lot of other assets and then "other" - Do I put it under "other" with the amount and number of bonds? Thank you. It states Shares / Securities quoted in the CGT section for aggregate consideration, but no mention of bonds/securities in the chargeable assets section! Please advise, thank you
 
It doesn't really matter - the information on capital acquisitions is not used anywhere. Revenue may use it if they want to audit a CGT return some time in the future. As long as you can backup your CGT calculation and the legitimacy of the funds used to purchase the asset
 
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