taxation of rabo fund investment gains

T

trevork

Registered User
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I had invested €3K in a rabo Irish Equity fund in 2007and last month I cut my losses and transferred the €1.2K I had left to a US equity fund. I have since read that the loss I made of €1.8K is ignored when calculating the tax i would have to pay on any gains on the US equity fund. This seems very unfair to me. As far as I am concerned I will never make a gain on my €3k investment and should not pay any tax. Does this apply to all funds, or is it because rabo bank are not irish?
 
Your assumption is correct. It's on the Rabo website [broken link removed].

It's not because Rabo aren't Irish. It's because each fund is a separate offshore entity so by switching from one to another, you're selling one and buying the other, which is two separate transactions.

Domestic funds allow you to switch internally between funds and Exit Tax will only be calculated on the gain made on your overall investment. However, if you switch providers, e.g. you cash in Irish Life funds at a loss and buy into New Ireland with the proceeds, you can't offset your Irish Life loss against any subsequent gains made by New Ireland.
 
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