Buying shares though a branch of aib.

daithijjj

Hi, i have boi shares purchased through a branch of aib, i understand that CGT is owed on profits gained. I would just like to know, if CGT is at 20%, why do i owe 42% on profits, as i was told by aib. Im not particularly concerned, i would just like to know why its such a big 'chunk'. I searched high and low online for a reason for this, but never came across anything resembling this %........is there anyone out there who can explain the extra just so im wiser for the next investment, thanks.

Mort5000

Hi,

Have you had a look here:

http://www.revenue.ie/en/tax/cgt/faqs.html

My understanding of CGT (until this afternoon when they change it :rolleyes: ) is:

"The first €1,270 of an individual’s annual gains is exempt. The balance is chargeable at 22%."

42% sounds like the PAYE rate, and I expect there is some confusion there.
I don't think you should be paying that on anything that isn't considered income.

daithijjj

Mort5000 wrote: »

Hi,

Have you had a look here:

http://www.revenue.ie/en/tax/cgt/faqs.html

My understanding of CGT (until this afternoon when they change it :rolleyes: ) is:

"The first €1,270 of an individual’s annual gains is exempt. The balance is chargeable at 22%."

42% sounds like the PAYE rate, and I expect there is some confusion there.
I don't think you should be paying that on anything that isn't considered income.

Thanks for the link mort, im gonna pop into aib and get my mind put at ease with this anyway because i wasnt there when the shares were bought, my brother bought them, i just gave him some money to buy me some while he was at it. They are currently >doubled in value so its turned out better than any savings account. We took a gamble buying at 39c and 20c:D.

Im a newbie to the whole shares thing so apologies for any ignorance in the OP.

time lord

daithijjj wrote: »

Thanks for the link mort, im gonna pop into aib and get my mind put at ease with this anyway because i wasnt there when the shares were bought, my brother bought them, i just gave him some money to buy me some while he was at it. They are currently >doubled in value so its turned out better than any savings account. We took a gamble buying at 39c and 20c:D.

Im a newbie to the whole shares thing so apologies for any ignorance in the OP.

Do you have to be an A.I.B. member or how does it work. Often meant to call in but any detail would be good. minimum buys etc.

Mort5000

Hi daithijjj,

No problem

Announced this afternoon:

"Capital Gains Tax and Capital Acquisitions Tax will both rise from 22% to 25%."

Keep an eye out for all those budget changes.

daithijjj

time lord wrote: »

Do you have to be an A.I.B. member or how does it work. Often meant to call in but any detail would be good. minimum buys etc.

yeah, you have to be a holder of a bank account with aib, thats why i tagged onto my brother, he has a current acc there. Not exactly sure of the minimum buys but i can tell you that there is a standard fee of 100 euro + 1% charge on the amount of money invested. I primarily took the punt on these shares with my savings (fairly modest) as i thought rates would drop and they have dropped, from 5.5% to 3.5% (in my case) in just a few months. Hope this is of some help if you want to go down the aib route but i think i might set up an account for myself somewhere else in the future as there are better options for cheaper fees to purchase shares.

daithijjj

Mort5000 wrote: »

Hi daithijjj,

No problem

Announced this afternoon:

"Capital Gains Tax and Capital Acquisitions Tax will both rise from 22% to 25%."

Keep an eye out for all those budget changes.

Yeah, just heard it on the radio, bit of a downer but i wont make too much of a fuss seeing as ive made a nice profit:D:D