Capital Gains Tax Exemption

gambler12

I'm about to sell some shares that I bought as part of a share purchase plan with my employer. The gains from the sale should be below the €1270 personal exemption.
My question is, do I still need to declare the profits from the sale of the shares to Revenue or fill out any forms, even if the gain is below the €1270 exemption?

nailer54321

Anyone know about this, I would be interested in knowing what to do here also. you are allowed 1270 profit, so if you only make 1000k profit do you need to declare this or do you just keep your receipt from you sale of said stock as proof that you were within the capital gains exempt limits.

Penguin3029

Hmm... I've looked this up and can't find a conclusive answer so went to the legislation. Not purporting this to be definitive, but what I found was:

Section 959I(1): "Every chargeable person shall... prepare and deliver... a return"

Section 959A defines a chargeable person: "means, as respects a chargeable period, a person who is chargeable to tax for that period"

Section 601(1): "An individual shall not be chargeable to capital gains tax... if the amount on which he or she is chargeable... does not exceed €1,270"

On this basis, I would conclude that if the gains are less than €1,270 an individual is not chargeable. If not chargeable, no return need to be made. However, you will still need to keep documentation proving figures. That's all I could find anyway.

CIARAN_BOYLE

Penguin3029 wrote: »

Hmm... I've looked this up and can't find a conclusive answer so went to the legislation. Not purporting this to be definitive, but what I found was:

Section 959I(1): "Every chargeable person shall... prepare and deliver... a return"

Section 959A defines a chargeable person: "means, as respects a chargeable period, a person who is chargeable to tax for that period"

Section 601(1): "An individual shall not be chargeable to capital gains tax... if the amount on which he or she is chargeable... does not exceed €1,270"

On this basis, I would conclude that if the gains are less than €1,270 an individual is not chargeable. If not chargeable, no return need to be made. However, you will still need to keep documentation proving figures. That's all I could find anyway.

I believe you are right. Bear in mind though that a chargeable person for income tax must complete cgt portions of the form 11 as they become chargeable by being chargeable for it.

Penguin3029

CIARAN_BOYLE wrote: »

Penguin3029 wrote: »

Hmm... I've looked this up and can't find a conclusive answer so went to the legislation. Not purporting this to be definitive, but what I found was:

Section 959I(1): "Every chargeable person shall... prepare and deliver... a return"

Section 959A defines a chargeable person: "means, as respects a chargeable period, a person who is chargeable to tax for that period"

Section 601(1): "An individual shall not be chargeable to capital gains tax... if the amount on which he or she is chargeable... does not exceed €1,270"

On this basis, I would conclude that if the gains are less than €1,270 an individual is not chargeable. If not chargeable, no return need to be made. However, you will still need to keep documentation proving figures. That's all I could find anyway.

I believe you are right. Bear in mind though that a chargeable person for income tax must complete cgt portions of the form 11 as they become chargeable by being chargeable for it.

Very good point, it'll depend on each individual's other circumstances (namely whether self-assessed).

nailer54321

@penguin3029, if you get stock options from your employer do you not have to do a self assessment, this has always been a grey area with the revenue. Years back I was given stock option and bought shares in said company and anytime I was dealing with the revenue they had me down as self assessment even thought I was a paye employee. Very confusing to the normal person who just want to dabel in the stock market. My advice to anyone who sells shares or stock option would be to keep a record and receipts of everything because when you are dealing with the revenue you will get different options on what is required depending on who you talk too.

Penguin3029

nailer54321 wrote: »

@penguin3029, if you get stock options from your employer do you not have to do a self assessment, this has always been a grey area with the revenue. Years back I was given stock option and bought shares in said company and anytime I was dealing with the revenue they had me down as self assessment even thought I was a paye employee. Very confusing to the normal person who just want to dabel in the stock market. My advice to anyone who sells shares or stock option would be to keep a record and receipts of everything because when you are dealing with the revenue you will get different options on what is required depending on who you talk too.

I missed the part of the q about stock options initially. Section 128 says you are charged under Schedule E, but are a chargeable person (and should make a return) in respect of gains on stock options. However, there is provision in section 959N for Revenue to exclude you from having to make a return in this case (not sure why/when they do, or if they do it in reality, but they can).

gambler12

Thanks for the advice everyone. As a PAYE worker I've had shares from my employer over the last few years but they've been very small and the sale of the shares has been below the yearly 1,270 euro exemption. So i don't think I'll bother filling out any forms. If revenue comes looking, I have all my receipts to prove I don't owe anything anyway.