Funds in Rabodirect

ali1971

Hi,

I have some investment funds in Rabodirect since 2005/2006. I invested approx. 200-500 euro in each fund at the time. Most of them dropped and were worth less in 2009. However, I see they are beginning to rise now. I have never sold any of them yet. Do I just pay the tax on them when they are sold? If I sell one that made a profit and one that made a loss can I offset the loss before paying tax.
Thanks in advance for any help.

robp

ali1971 wrote: »

Hi,

I have some investment funds in Rabodirect since 2005/2006. I invested approx. 200-500 euro in each fund at the time. Most of them dropped and were worth less in 2009. However, I see they are beginning to rise now. I have never sold any of them yet. Do I just pay the tax on them when they are sold? If I sell one that made a profit and one that made a loss can I offset the loss before paying tax.
Thanks in advance for any help.

As far as I know they will deduct tax for you (exit tax) if this unit. Though usually you can't offset a loss like that with such funds.

topper_harley2

robp wrote: »

As far as I know they will deduct tax for you (exit tax) if this unit. Though usually you can't offset a loss like that with such funds.

No. The exit fee is not the same as paying tax. This exit charge is a fee Rabo levy for the admin of exiting the fund. You must declare any profit separately to revenue yourself, either on exit from fund or every eight years. All info is here:
https://www.rabodirect.ie/investments/more-investment-info/taxation-faq.aspx

robp

topper_harley2 wrote: »

No. The exit fee is not the same as paying tax. This exit charge is a fee Rabo levy for the admin of exiting the fund. You must declare any profit separately to revenue yourself, either on exit from fund or every eight years. All info is here:
https://www.rabodirect.ie/investments/more-investment-info/taxation-faq.aspx

I have been personally told by revenue that tax is deducted by the company on the typical Irish unit funds so I checked the Rabo site and I found out this is indeed different. They are mostly Luxembourg based SICAVs and taxed like an ETFs.

ali1971

Hi, Thanks for all your replies.

Do I have to pay tax on them even if I haven't sold them. What if I pay the tax, don't decide to sell them and they decrease in value?
I would have checked them 2 years ago and they weren't doing particularly well.

topper_harley2

ali1971 wrote: »

Hi, Thanks for all your replies.

Do I have to pay tax on them even if I haven't sold them. What if I pay the tax, don't decide to sell them and they decrease in value?
I would have checked them 2 years ago and they weren't doing particularly well.

Answer to above is all in the link I already posted. Note the eight year rule section

ali1971

Thanks for that link. It explains it all. I also rang Rabodirect. I or they have no records from 2 years ago so may sell and send the tax due on.

daheff

ali1971 wrote: »

Thanks for that link. It explains it all. I also rang Rabodirect. I or they have no records from 2 years ago so may sell and send the tax due on.

Really? Banks are required by law to hold the records for 6 years
http://www.amlcu.gov.ie/en/AML/Pages/WP09000190


Also, when you login online you can view statements and contract notes

daheff

ali1971 wrote: »

Hi, Thanks for all your replies.

Do I have to pay tax on them even if I haven't sold them. What if I pay the tax, don't decide to sell them and they decrease in value?
I would have checked them 2 years ago and they weren't doing particularly well.

Yes you do have to pay tax on any deemed profits even if you haven't sold.

alb

daheff wrote: »

In the event they then subsequently lose value from the deemed exit price you can offset that loss against future taxable gains.

Pretty sure you can't do this for things subject to exit tax, it's only for capital gains.

daheff

alb wrote: »

Pretty sure you can't do this for things subject to exit tax, it's only for capital gains.

actually you are correct. apologies. I'm still thinking its under the CGT regime.

From rabo site https://www.rabodirect.ie/investments/more-investment-info/taxation-faq.aspx

Are there any tax reliefs available to help offset my tax liability?
In the case of offshore funds, investors will pay tax at 41%* from the 1st of January 2014, provided they’ve included the correct details with their tax return and made it by the 31st of October following the year in which the gain was made.

Investors can’t offset gains made in one fund against the losses incurred in another. It’s also worth nothing, if an investor has made a loss on the sale of a fund, there’s no tax relief available for that loss.

*PRSI may also apply depending on your circumstances