CGT Exemption

Arthurdaly

I have a modest amount invested in some funds with Rabo. Given time constraints my general strategy is buy and hold, served me ok considering I invested at a bad time originally and now seeing some returns.

Overall I am in the green for around 3/4K and am wondering should I realise gains from one of the funds (If I sold all units I would realise something in the order of the tax exemption limit 1270)? I will be reinvesting all that capital again and will incur redemption and reinvestment fees (100-150). All my capital was invested with dollar averaging originally and I would be a little nervous a lump at the moment. I dont need the cash at the moment but would like to cream off a little bit tax free profit considering the upcoming budget.

My strategy is long term and im prepared to sit for another 5-10 years. I know its small money but I was wondering If small investors think this way, ie use up the tax free exemption before year end? I could sell and reinvest and be in the red within a month which is the concern.

ravima

some funds discharge the CGT themselves, so the return to you is not subject to CGT. Check the documentation you have or talk to your financial advisor

Atlantic Dawn

The Rabo funds are outside the €1270 exemption and tax must be paid on every cent of profit. You pay taxes next year on profits made this year.

http://www.rabodirect.ie/investments/taxation/default.aspx