Paying CGT

samsamson

Hi guys,

Hypothetically, let's say I sell €3000 worth of shares that I have with Davy.

How do I actually go about paying Capital Gains Tax on this?

I would ideally like to pay off whatever tax I owe straight away so I'm not left with X amount of euro sitting around my bank account waiting for the Revenue to come knocking on my door.

This might sound stupid, but I presume I'm not lucky enough for it to be as simple as me sending them what I owe them via bank transfer or anything?

Thanks!

JohnnieA

Well there are 3 separate issues here.

1) Calculating tax. Can you do this yourself, or do you need help here as well? Sorry your post doesn't really clarify whether you need help on this too. I'm going to assume you can make the calculations yourself. If not, ask away.

2) Paying tax.
_If gain took place between Jan-Nov, you have to pay by December 15th. Fill out and send form CGT Payslip A.
_If gain took place in December, you have to pay by January 31st following year. Fill out and send form CGT Payslip B.
You pay by sending a bank draft or a cheque to the address shown on the form. You can also pay online by credit card, but I haven't tried it.
Obviously, if you sold at a loss or your gain is smaller than the allowable excemption, you don't have to pay.

3)Making a return.
To submit a return, fill out and send a CG1 form. You can also submit a return using form 12 for example, but I some issues when I did that (http://www.boards.ie/vbulletin/showthread.php?t=2057131288).
Best to fill out form CG1. It's short anyway.
Returns must be submitted by 31st October following year (if by post, remember that it takes some time for them to receive it).
You must submit a return, even if you made a loss or are exempt from payment.

Link to forms:
http://www.revenue.ie/en/tax/cgt/forms/index.html
Link to detailed guide:
http://www.revenue.ie/en/tax/cgt/faqs.html

manonboard

Could I confirm that paying CGT is based on the total profit/loss from share dealing within the year.

eg, If share A makes me 5000, and share B loses me 6000.
Do I pay tax on the 5000?

or does it all count as -1000 and I dont have to pay cgt?

JohnnieA

manonboard wrote: »

Could I confirm that paying CGT is based on the total profit/loss from share dealing within the year.

eg, If share A makes me 5000, and share B loses me 6000.
Do I pay tax on the 5000?

or does it all count as -1000 and I dont have to pay cgt?

It's based on total. Not only that, you can carry over your losses to next year.

e.g.
2012 - lose 6000
2013 - gain 5000

You pay no CGT, because you have a -1000 loss.

But: You must still submit a return for both years. Even if you made a loss.

Sconsey

Does the same go for managed funds? are they treated the same as share purchases/sales?

Thanks

arrowloopboy

This is exactly why I spread bet instead of buying shares,should be called ,we'll take the reward for you taking the risk tax,then we'll squander it ,or give it to the guys I see hanging around the bookie office all day every day (but not too early,poor divils need their 12 hrs:rolleyes:).
It warms the cockles of my heart to think that I'm going to work every day to pay my taxes ,social charge,etc etc to keep these guys in dole so they can do accumulators ,Yankees all day,awwww its a great little country,unless your trying to better yourself.

Sonnenblumen

arrowloopboy wrote: »

This is exactly why I spread bet instead of buying shares,should be called ,we'll take the reward for you taking the risk tax,then we'll squander it ,or give it to the guys I see hanging around the bookie office all day every day (but not too early,poor divils need their 12 hrs:rolleyes:).
It warms the cockles of my heart to think that I'm going to work every day to pay my taxes ,social charge,etc etc to keep these guys in dole so they can do accumulators ,Yankees all day,awwww its a great little country,unless your trying to better yourself.

Shame really isn't it, wasting money on educating people only to end up listening to the same beneficiaries whinge when the time comes for them to pay their share?

Few people like paying tax but most have the integrity and humility to do so without scapegoating the unemployed, the sick, the elderly, the young etc

arrowloopboy

Sonnenblumen wrote: »

Shame really isn't it, wasting money on educating people only to end up listening to the same beneficiaries whinge when the time comes for them to pay their share?

Few people like paying tax but most have the integrity and humility to do so without scapegoating the unemployed, the sick, the elderly, the young etc

YOU FORGOT THE WASTERS

samsamson

Thanks for the very helpful replies. I find the whole tax system extremely confusing but this has cleared it up for me considerably.

So if I sell 3000 euro worth of shares, of which 1000 euro is profit, then I am exempt because this figure is below the 1270 annual allowance.

However, I still need to fill in a return to let revenue know I paid in at point A, sold at point B, made X% profit but don't need to be taxed on it. Correct?

JohnnieA

samsamson wrote: »

Thanks for the very helpful replies. I find the whole tax system extremely confusing but this has cleared it up for me considerably.

So if I sell 3000 euro worth of shares, of which 1000 euro is profit, then I am exempt because this figure is below the 1270 annual allowance.

However, I still need to fill in a return to let revenue know I paid in at point A, sold at point B, made X% profit but don't need to be taxed on it. Correct?

Precisely.