Tax return queries

[Paul J]

I am currently filling out my tax return for 2003, and have 2 queries which some-one may be able to help me with.

Firstly, does indexation still exist for the purpose of working out CGT. I cannot find indexation tables on the Revenue website, and I do recall something in a previous budget about indexation being scrapped. I have some shares that I bought in July 2001 and disposed of in May 2003.

Secondly does interest received on an SSIA account fall under section 12 - 'Interest received or credited on deposits arising in the state from which Irish Tax was deducted' Am I correct in assuming that SSIA interest received is net of Dirt.

 

[Guest]

> Firstly, does indexation still exist for the purpose of working out CGT.

Indexation is allowed up to December 31st 2003 after which the multipliers remain constant. See here:

www.revenue.ie/pdf/cgtmult.pdf

> I have some shares that I bought in July 2001 and disposed of in May 2003.

In this case the relevant multiplier would seem to 1.087

> Am I correct in assuming that SSIA interest received is net of Dirt.

Not DIRT as far as I know but on encashment at maturity the interest/growth will be paid net of SSIA maturity tax of 23%. As far as I know this is the full extent of one's tax liability on this source of income. I'm not aware of any tax liability while SSIA interest is paid but remains locked into the account. Early encashments (part or full) are taxed at 23% on the full amount.

Disclaimer: I am not a tax expert!