Option to delay payment of Capital Gains Tax

DUBISAK

Does anyone know of any options to delay paying captal gains tax?

Speaking to a colleuge in the UK briefly expaline dhis position to me, and I am not sure if I tok him up correctly or if there is such a possability in Ireland.

When he sells shares in Uk for profit if he keeps the money in a certain account (like a pesion fund / account) it is not liabel to tax. He can then reinvest this in other shares.

If however he wa sto take the profit made from this account and put into ordinary banking account it woudl become liable to full rate of tax.

This is done to promote saving for private pension to take burden from the state.

This man is just an average privat trader with maybe a dozen trades a year on average.

Mr. Incognito

Firstly spell check.

There are due dates to pay capital gains tax. With the exception of RTSO's which may be paid within 30 days the periods that capital gains tax arises have specific due dates to be paid by. For example a gain made in June the CGT is not due till November. What you do with the money in the meantime is your business if you want to hold out to the deadline but you better have it when the tax man comes a calling or you're looking at interest and penalties.

You seem to be talking about shares and RTSO stands for relevant tax on share options- which must have the income tax paid within 30 days if given at a reduced rate.

johnc2212

it seems your colleague in the UK is dealing through a self invested pension which is either personal for a sole trader or small self administered in the case of a company (director). Once funds go into these pensions they can be used to trade in shares tax free. However, they can't be touched (i.e. withdrawn) until retirement conditions are fulfilled.

As per the last post there are 2 dates to remember for CGT, the year of assessment is a calendar year, CGT has its own payment dates and payment periods. These are divided into the “initial period”, which runs from January to November, and the “later period” being December. Jan to Nov is payable in December. December gains are payable by the following Jan.

DUBISAK

Thank you both for your assistance,