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Selling shares B&B and 4 week rule

  • 11-10-2013 5:16pm
    #1
    Diarmuid
    Registered Users, Registered Users 2 Posts: 3,981 ✭✭✭


    I've a question regarding the Section 581 rules with regard to so-called B&B share transactions.

    My understanding is that if you sell shares you cannot buy them back within 4 weeks and offset any potential loss against other gains. This statute was introduced to prevent this.

    On reading the link above, the text refers to "class of shares". Can anyone clarify this? What is a class of share?

    If I sell shares in AerLingus and buy Ryanair I assume this is not covered by this rule?

    What about if I sell one ETF and buy another ETF (potentially tracking the same index) within the 4 week window, is this permissible?


Comments

  • #2
    Bold Abdu
    Registered Users, Registered Users 2 Posts: 213 ✭✭Bold Abdu


    Classes of shares - ordinary, preference. Different shares might have different voting rights so they would be of a different class.

    Ryanair/Aer Lingus - Not just different class but different Co. - 4 week rule would not apply

    ETF - 4 week rule would not apply


  • #3
    NewApproach
    Registered Users, Registered Users 2 Posts: 2,191 ✭✭✭NewApproach


    Take care with the ETFs. They may be subject to Income Tax rather than CGT in which case losses from one cannot be used to offset gains from another.


  • #4
    Diarmuid
    Registered Users, Registered Users 2 Posts: 3,981 ✭✭✭Diarmuid


    NewApproach wrote: »
    Take care with the ETFs. They may be subject to Income Tax rather than CGT in which case losses from one cannot be used to offset gains from another.

    I've been googling around about them. The taxation side is a nightmare in Ireland and hard to get definitive answers. For EU resident ETFs most are treated as UCITS but it's not clear for US resident ETFs.


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