Capital gains tax on shares - Ireland / US / UK

gggg

Hello

This may have been addressed before. If you live in Ireland and buy and sell UK & US shares though the Irish arm of an international broker (TDWaterhouse.ie), do you simply put the gains through Revenue in Ireland or do you have do go through the IRS / HMRC to file?

thanks
G

Cute Hoor

I'm pretty certain that you pay your CGT in Ireland, irrespective of which stockbroker you use or the exchange you trade in.

Smcgie

Yes (unfortunately) you have to pay your CGT here. Sure its only 25% yet we charge large businesses 12.5% tax.

Wonderful island!

Iguana Bob

or you could forget to pay it.
you'll be grand they will never find out

Thargor

How do they find out? Do the banks report every time something over a certain amount goes through or something?

Johnny Favourite

Iguana Bob wrote: »

or you could forget to pay it.
you'll be grand they will never find out

Seriously?? How would the revenue find out??

The Pontiac

Johnny Favourite wrote: »

Seriously?? How would the revenue find out??

Seriously, how wouldn't they? Do you really think the Tax Man doesn't have a check system with registered brokers in Ireland? Do you honestly think the revenue guys don't go through the accounts of TD Waterhouse etc. to see which accounts have a surplus at year end? It would be a pretty simple procedure I'd imagine. Some people can be extremely naive.

Iguana Bob

<Ollie> wrote: »

Seriously, how wouldn't they? Do you really think the Tax Man doesn't have a check system with registered brokers in Ireland? Do you honestly think the revenue guys don't go through the accounts of TD Waterhouse etc. to see which accounts have a surplus at year end? It would be a pretty simple procedure I'd imagine. Some people can be extremely naive.

i would have my doubts that the tax man would ever find out unless you were clearly living beyond your means.
you really think the tax man will go throught millions of trades in TD waterhouse and others.
what about online brokers like sharewatch, and ones set up outside ireland.
i'd imagine they are generally relying on people declaring because if they do happen to find out you will be screwed.
if i use one of my bank accounts in either america or brazil and register with a broker there, im pretty sure they will never catch me. granted i would probably never pull in huge figures from trading.

Johnny Favourite

<Ollie> wrote: »

Seriously, how wouldn't they? Do you really think the Tax Man doesn't have a check system with registered brokers in Ireland? Do you honestly think the revenue guys don't go through the accounts of TD Waterhouse etc. to see which accounts have a surplus at year end? It would be a pretty simple procedure I'd imagine. Some people can be extremely naive.

Absolute nonsense... are you serious?

I think you are the one who is naive. Do you honestly think the Tax man can go through peoples accounts like that? They cant even get a look into your Irish bank accounts without a courts permission.

Its peoples naivety that has them believe the tax man has super powers and can find out all this info. They only know what you tell them.

I have a friend who works in the tax office and I'm always asking about various situations and if would the tax man find out and he laughs... laughs his ass off. Say they don't have a clue and only work on what people tell them.

Shauny2010

Its worst than that,
Government departments aren't even linked together,And even if they were they cant look at someones details from another dept for fear of breaking some Eu privacy laws:D

Muldooniho

don't forget the 1st €1270 capital gain per annum is tax free so you may not be liable in any case.

spcw

nobbin wrote: »

So I got a cheque in the post the other day for some shares I sold (used to work in the company a long time ago)

Oh to tell the tax man or not? I could badly do with the extra few bob not paying the tax would provide

Pay what you owe, not paying is robbing the rest of the country. do you use the roads, drink water, pee in a toilet, go to school, get health care.
it costs money and your taxes are the paymaster.

Tipical old ireland attitude, sure if he doesnt know it wont hurt him. I;m all right jack, your probably the same fellow on joe duffy whinging about the government and what they dont do for you.

Shauny2010

spcw wrote: »

Pay what you owe, not paying is robbing the rest of the country. do you use the roads, drink water, pee in a toilet, go to school, get health care.

You forgot to mention the TDs salaries+expenses+pensions, Big civil service salaries + expenses+pensions and now the German French banks.
Its enough to make anyone refuse to pay tax.

ixtlan

nobbin wrote: »

So I got a cheque in the post the other day for some shares I sold (used to work in the company a long time ago)

Oh to tell the tax man or not? I could badly do with the extra few bob not paying the tax would provide

Personally I would pay. I agree with some of the OPs that in most cases Revenue is extremely unlikely to find out about these activities, but it would always be hanging over your head.

Revenue may be disconnected and unobservant now, but it may not always be so. I've worked in companies with share schemes where employees got discounts for buying shares. Some people declared them and some did not. I figure adding all similiar schemes around the country over the past 2 decades there is likely to be 10's of millions of undeclared income. Eventually Revenue may get it's act together and start investigating these schemes. It could be like a mini, Joe Bloggs version of the Ansbacher accounts, and could get very ugly.

Likewise Revenue could make arrangements to investigate share accounts, in Ireland, EU and even the US (with agreement). This would be difficult now, but with some improvements in computer intelligence, eventually the dots may all get connected. Or not... but do you want to take the chance? And that's before we even talk about what is right, and what is wrong.

Ix.

wildrover50

We expect to sell some land in Canada this year for a profit which will be liable for CGT.
We also hold some Bank of Ireland shares which, if sold, would be at a considerable capital loss.
Can we offset the share loss against any capital gains tax due on the sale of the land in Canada?

EdenCyrus

Im not sure about canada, But i know Japan did something similar, where you could carry the losses over 3 years and write them off against your gains I think.

Singapore, Cayman islands, the Isle of man, China, Hong Kong etc are CGT free. I think that is probably why traders and companies are situated in these places. I think Mexico is like 35%

Be aware of Ireland, if your offshore gains are not declared in time Ireland can charge you around 40% in CGT. So its a huge risk in that regards.