Capital Gains tax on the selling of shares

adie1988

I am on disability allowance and have just been called down to my local social welfare office for assessment.

I told them that my dad my dad bought shares for me as a child and they had gown to a value of €90,000. He sold them a few months ago and bought land with the money. The shares were in my name and the land is in my name, however I do not know anything about shares and I think he didn't pay the capital gains tax.

The inspector now wants information on the land that was purchased and confirmation that the capital gains tax was paid.

I feel this is really unfair as the land is giving me no income and I can't ask anything to my Dad about it without causing a row.

We dealt with a company callled Fexco when selling the shares.

Is there any information that anyone could give me anywhere? Have been reading the capital gians tax info, but it doesn't make sense to me.

Really need the disability allowance as it is putting me through college. A college that I will be at for atleast 3 more years...

mike65

http://www.fixmytax.com/capitalgains-summary.html

You are liable to capital gains tax (CGT) on taxable gains (less allowable losses) when you make a disposal of an asset, such as a house (excluding the family home), shares or other business assets and investmetns.

Tax is payable at 20%, with some exceptions.

MIke.

Oafley Jones

adie1988 wrote: »

I am on disability allowance and have just been called down to my local social welfare office for assessment.

I told them that my dad my dad bought shares for me as a child and they had gown to a value of €90,000. He sold them a few months ago and bought land with the money. The shares were in my name and the land is in my name, however I do not know anything about shares and I think he didn't pay the capital gains tax.

The inspector now wants information on the land that was purchased and confirmation that the capital gains tax was paid.

I feel this is really unfair as the land is giving me no income and I can't ask anything to my Dad about it without causing a row.

We dealt with a company callled Fexco when selling the shares.

Is there any information that anyone could give me anywhere? Have been reading the capital gians tax info, but it doesn't make sense to me.

Really need the disability allowance as it is putting me through college. A college that I will be at for atleast 3 more years...

You're paying CGT (a tax on capital gain arising on the disposal of an asset) on the shares, the land doesn't enter into it.

adie1988

Do you think a stockbroking company like Fexco would have allowed the shares to have been sold without paying the capital gains tax?

clarkey1980

adie1988 wrote: »

Do you think a stockbroking company like Fexco would have allowed the shares to have been sold without paying the capital gains tax?

Yes they would. It's not up to them to ensure clients are tax compliant

pjproby

if the capital gain was realised this year the tax is not payable till next year surely!
remember it is profit on the shares not the 90,000 that the tax is due on.

clarkey1980

pjproby wrote: »

if the capital gain was realised this year the tax is not payable till next year surely!
remember it is profit on the shares not the 90,000 that the tax is due on.

Any Capital Gains realised between Jan & Sep '08, tax is payable before 31 Oct '08. Tax due on gains made between Oct & Dec '08 is due in Jan '09.

Genco

Cant you just show your father the letter and ask for his guidance and input ?

There may in fact be no capital gain depending on when the shares were purchased ...... back in the early 1990s the share price was at times significantly higher than it has been in the few years. Even if the original purchase price was lower you can still benefit from indexation depending on when they were purchased.

If there is a CGT Liability and you dont file and pay on time, significant interest and penalties can start clocking up pretty quickly.