CGT and share disposal within 4 weeks

gforce_24

Hi

With regard to the FIFO rules description on page 23 (paragraph "Disposal of shares within four weeks of acquisition") of the Revenue Commissioners "Guide to Capital Gains Tax", can anyone explain to me what the words "identified with" in the following sentence means

"Where shares are sold within four weeks of acquisition the shares sold are identifed with the shares acquired within that period."

In my case, I purchased some additional shares last year in a company I already held shares in. Within the 4 week period mentioned above, I sold my total holding of shares in that company at a loss. So I'm wondering how this "identified with" phrase affects my disposal of those shares?

Thank to all for any assistance

gforce_24

Another question relating to the FIFO rules if anyone would have any ideas....

Last December I sold a shareholding (2500 shares) in ILP on which I made a loss. A few days after that sale, the share price had risen and I bought back in with a smaller number of shares (1000 shares). This was well within the 4 week period relating to modified FIFO rules of share disposal. (Subsequently I bought an additional number of ILP shares in 2011, and sold my entire holding later in 2011.)

On page 23 of the Revenue's "Guide to Capital Gains Tax", it says:
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"Furthermore, where a loss accrues on the disposal of shares and shares of the same class are acquired within a four week period, the loss is not available for offset against any other gains arising. Instead the loss is only available for set off against any gain that might arise on the subsequent disposal of the shares so acquired in the four week period - this provision does not apply where there is a gain on the disposal."


I am trying to calculate how much of the loss made on the share sale in December 2010 I can claim for 2010. So I'm wondering if I can either
----
1) Use the balance of the loss (equal to 1500 shares) made between

(Sale of all holding in December 2010 - Purchase of small holding in December 2010)

in my calculation of CGT libability for 2010.

- or -

2) Does the loss for the sale in December 2010 relate to the entire 2500 share holding, meaning that I would not be able to use any of the loss the "remaining" 1500 shares until I sold the 1000 shares which I later purchased?


I think that I should be able to use the loss on the remaining 1500 shares in 2010, but just want to see if anyone else has any further information on this. Apologies if this sounds a bit confusing.


Thanks again for any help on these questions

gforce_24

In regard to the questions I posted below, I went to my Revenue office a few days back and got the following information:
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1) For the first question (http://www.boards.ie/vbulletin/showpost.php?p=75129667&postcount=1), as I sold the entire holding which I had in the company, the FIFO rules with regard to shares purchased in the last 4 weeks do not apply. However, if I only sold a portion of my holding, the FIFO rules would apply in that case.

The phrase "identified with" relates to this, meaning that the portion of shares that you sell is "linked to" (or in their words "identified with") the holding which you purchased within the previous 4 week period.


2) To question 2 above (http://www.boards.ie/vbulletin/showpost.php?p=75135313&postcount=2) - from what I was told by Revenue, because I re-purchased shares within the 4 week period, none of the loss which I incured on the first sale can be used. The only loss which I can use is that which occured when I sold the entire shareholding in 2011.

If anyone has any points that I haven't identified in regard to number 2), I'd be grateful to hear them.