CGT on sale of etfs?

willietherock

I recently sold an exchange traded fund, a type of share index, for a profit of ~ € 600 recently that I owned via an online share account.

As this amount is below personal exemption of 1,270€ do I have to declare this to revenue for the purposes of paying CGT?

willietherock

Doing a bit research.
It appears that gain on the sale of etfs are covered under investment fund exit tax of 36?%
Anyone any knowledge of how I go about declaring this to revenue ( what forms ect)?

slo007

Did you find out which tax applies?

I'm struggling to identify the correct answer as the examples on Revenue's website are not clear.

Taxuser1

slo007 wrote: »

Did you find out which tax applies?

I'm struggling to identify the correct answer as the examples on Revenue's website are not clear.

Give more information and we can try and help you

What’s the origin of the etf
Where is it traded
Where is it regulated
Do you manage your own portfolio
Did you receive a prospectus on acquisition
Were you advised to declare its acquisition on a tax return

slo007

Taxuser1 wrote: »

Give more information and we can try and help you

What’s the origin of the etf
Where is it traded
Where is it regulated
Do you manage your own portfolio
Did you receive a prospectus on acquisition
Were you advised to declare its acquisition on a tax return

I sold Barings Europe Select Class I - Income (GBP) via the website Hargreaves Lansdown (HL.co.uk) for 1,099.62. The cost was 1200.00, so I incurred a loss of 100.38

I had "income" from the wound down of the Woodford LF Equity Income Fund in the sum of 1227.19 (on HL UK). The cost was 2,178.42, so a loss of 951.23

Finally, I had income from various funds and indexes (i.e. Marlborough Multi Cap Income, Royal London Sterling Extra Yield Bond, etc.) of 377.38.

I manage my own portfolio; which resides in an ISA in the UK. Income is reinvested on the HL platform.

So an overall loss for 2020. How would I report it correctly?

Does it make sense to bother since values are so small overall?

I checked with an accountant, he wants 500 Eur plus VAT to assist. Under the circumstances, it makes little sense.

Taxuser1

slo007 wrote: »

I sold Barings Europe Select Class I - Income (GBP) via the website Hargreaves Lansdown (HL.co.uk) for 1,099.62. The cost was 1200.00, so I incurred a loss of 100.38

I had "income" from the wound down of the Woodford LF Equity Income Fund in the sum of 1227.19 (on HL UK). The cost was 2,178.42, so a loss of 951.23

Finally, I had income from various funds and indexes (i.e. Marlborough Multi Cap Income, Royal London Sterling Extra Yield Bond, etc.) of 377.38.

I manage my own portfolio; which resides in an ISA in the UK. Income is reinvested on the HL platform.

So an overall loss for 2020. How would I report it correctly?

Does it make sense to bother since values are so small overall?

I checked with an accountant, he wants 500 Eur plus VAT to assist. Under the circumstances, it makes little sense.

i would have charged more. i'm not being smart.

the value in an accountant (or tax advisor) is that they will read the prospectus of each asset you buy and that takes time at their rates. did it mention what the funds were? the larger the portfolio the more it costs.

if you manage our own portfolio and do it incorrectly, like not telling revenue in a tax return that you acquired certain offshore funds you had a material interest in, the penalties for getting it wrong down the line are more extreme.

I wouldnt' have a clue whether those funds are ETFs Offshore funds, or UCITS type so wouldn't make a call on correct tax treatment here. broadly though, if funds are similiar to SICAVS like UCITS (think IFSC type funds on the whole) they will identify as so on the asset prospectus on acquisition. then the tax treatment is largely done at source and you get thet net amounts on redemption i.e. an exit tax is applied before you get your money. you don't have a reporting issue income or capital taxes wise.

that's not a given but the reason your accountant will charge you is because it'll take them tie to trawl through the various different prospectus and then compare to whether or not they are one type of asset or not. good location, bad location, etf, UCIT, SICAV material interest etc.

just for info purposes though, if its an "income" asset and you redeem for a loss or a gain, you don't pool "gains" or "losses" with most funds, each is separate. you might make an economic total loss or profit but its not reported (if it needs to be) as a total loss that way. you could quite easily have an income tax issue with one asset whilst making economic "losses" on 50 other assets.

slo007

Thanks for your reply. I acquired these funds when I lived in the UK. Since they are in an ISA wrapper, there's no tax applicable for the HRMC.

Interesting about not pooling gains/losses. Very informative

Taxuser1

slo007 wrote: »

Thanks for your reply. I acquired these funds when I lived in the UK. Since they are in an ISA wrapper, there's no tax applicable for the HRMC.

Interesting about not pooling gains/losses. Very informative

Hmrc has different funds rules to Irish revenue. I can only speak for Irish taxation rules

slo007

Taxuser1 wrote: »

Hmrc has different funds rules to Irish revenue. I can only speak for Irish taxation rules

Yes, I was referring to when I made the investments: didn't need to worry about tax. This is a problem I "created" by moving to Ireland.

Taxuser1

slo007 wrote: »

Yes, I was referring to when I made the investments: didn't need to worry about tax. This is a problem I "created" by moving to Ireland.

No, not necessarily so. Your circumstances are not clear. Are you Irish ? Where are you tax resident? There are so many variables here.

slo007

Taxuser1 wrote: »

No, not necessarily so. Your circumstances are not clear. Are you Irish ? Where are you tax resident? There are so many variables here.

EU passport and resident in Ireland. Are you referring to the domicile query? I can't seem to remember what I picked last year.

Taxuser1

slo007 wrote: »

EU passport and resident in Ireland. Are you referring to the domicile query? I can't seem to remember what I picked last year.

there's too many nuances to your situation like i said.

one - is it income or capital treamtent now
two - what is the fund, what did you buy, where did you intitially report the acquistion
three - you say its a UK saving product - HMRC or Irish issue
four - treatment of a non dom for CGT of an asset not in Ireland
five - remittance of any income or UK gains

your case needs proper practical tax advice that you need to get an advisor in my opinion. not 20 questions and answers on boards to get a general answer. happy to move to DM to assist there and i'd have charged more than 500 !.

Marcusm

slo007 wrote: »

I sold Barings Europe Select Class I - Income (GBP) via the website Hargreaves Lansdown (HL.co.uk) for 1,099.62. The cost was 1200.00, so I incurred a loss of 100.38

I had "income" from the wound down of the Woodford LF Equity Income Fund in the sum of 1227.19 (on HL UK). The cost was 2,178.42, so a loss of 951.23

Finally, I had income from various funds and indexes (i.e. Marlborough Multi Cap Income, Royal London Sterling Extra Yield Bond, etc.) of 377.38.

I manage my own portfolio; which resides in an ISA in the UK. Income is reinvested on the HL platform.

So an overall loss for 2020. How would I report it correctly?

Does it make sense to bother since values are so small overall?

I checked with an accountant, he wants 500 Eur plus VAT to assist. Under the circumstances, it makes little sense.

As an example of the issues you face, the first fund (Barings) is actually an Irish fund constituted as a company and subject to Irish exit tax rules except that it is targeted at non-Irish investors and I suspect (but could be wrong) that Hargreaves Lansdown is not aware of your Irish resident status or else hasn’t informed the fund.

Google each of the names and identify what type of product it is and then come back here with the info and we can give you a better steer.

You say you hve a European passport. Do you mean an Irish one? Whether you indicated domiciled or non-domiciled status on your tax return will have an impact on your Irish tax position so check it up and bring that information back also.