Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Tax relief on investment loss?

  • 26-03-2012 8:21am
    #1
    edd012
    Closed Accounts Posts: 4 ✭


    Hi, I'm trying to get some answers for a friend who several years ago, during the economic boom time, took out shares that have since fallen greatly in value. What I need to know is if she sells the shares now, can she claim any tax relief on the losses? She pays tax at work. Is it possible to use the losses to have this tax reduced? From what I have been able to find on Google, it seems you can only use the losses to claim tax relief on gains from future investments. If this is correct, what kind of proof of the loss does she need to get when selling the shares, and can losses that occurred years ago still be used in the future? The shares were taken out using the AIB online share dealing service. Any advice would be appreciated. Thanks.


Comments

  • #2
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    The general principle of capital losses is that they are set off against capital gains of the same year. Any unutilised losses may then be carried forward, indefinitely, to set off against future capital gains.

    There is no scope for carrying capital losses back to earlier years. Nor is there any scope for setting off capital losses against anything else.


  • #3
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,686 ✭✭✭barneystinson


    She should complete and submit a form CG1 for the year she disposes of the shares at a loss. This will put the loss on record going forward. This link is to the 2011 CG1 - the 2012 form isn't available yet, as it wouldn't be due for filing until after the tax year end. http://www.revenue.ie/en/tax/cgt/forms/formcg1.pdf


  • #4
    handlemaster
    Registered Users, Registered Users 2 Posts: 6,003 ✭✭✭handlemaster


    does this mean losses on share cannot be used on income say from a house rental etc


  • #5
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    handlemaster wrote: »
    does this mean losses on share cannot be used on income say from a house rental etc

    What I said nine months ago remains true:

    "The general principle of capital losses is that they are set off against capital gains of the same year. Any unutilised losses may then be carried forward, indefinitely, to set off against future capital gains.

    "There is no scope for carrying capital losses back to earlier years. Nor is there any scope for setting off capital losses against anything else."


Advertisement