Writing losses off against CGT

T

terencemc

Guest
Hey y'all,
I had shares in Anglo when they were nationalised and some BOI shares which are effectively worthless. I do however have more successful shares. If I sell these successful shares can I write off the loss of my nationalised shares against the CGT? If so, how long do I have to do this ? 5 years ?

cheers
T
 
You should make a negligible value claim in relation to the Anglo shares. This deemed loss can then be carried forward and offset against any future capital gains (excluding "development land" gains).

There's a Revenue eBrief on it:

[broken link removed]

As for the BOI shares, they still have value so you'd have to dispose of them and trigger the capital loss for it to be then available for offset against future capital gains.

To make the negligible value claim, you just include the loss on your 2009 return. No laughter please, but if in the future Anglo shareholders are compensated, any payment would then be subject to CGT.
 
Cheers Gecko.

Can I still make a return for 2009 in 2011 - excuse my ignorance?
 
Here is a Revenue document on claiming for losses on shares of negative value.

[broken link removed]


9.2 On a strict interpretation a loss arising on a deemed disposal under s 538(2) is allowable only in the year of claim. However, in practice, a claim made within twelve months of the end of the year of assessment or accounting period for which relief is sought will be admitted, provided that the asset was of negligible value in the year of assessment or account period concerned.
Click to expand...

So is this correct?

Say if I have a loss in 2011 and don't claim it.
In 2015 I make a capital gain and claim the 2011 loss against it.
If I submit my return by the end of 2016, I will be allowed to use the loss

It seems safest to claim for such losses in the year in which they occurred and not wait until you need to use them.

Brendan
 
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