CGT on Shares sold 31 Dec

Naos

Morning all,

I sold shares on the 31 Dec '18 and just received the cheque today. I will deposit the cheque this afternoon.

I made approx €1,000 profit.

Do I need to pay CGT on that or will it be covered under the €1,270 per year and if so, will it be considered 2018 or 2019 (ie. Can I sell more shares to avail of a further €1,270).

Thanks

BrokenArrows

Naos wrote: »

Morning all,

I sold shares on the 31 Dec '18 and just received the cheque today. I will deposit the cheque this afternoon.

I made approx €1,000 profit.

Do I need to pay CGT on that or will it be covered under the €1,270 per year and if so, will it be considered 2018 or 2019 (ie. Can I sell more shares to avail of a further €1,270).

Thanks

It will be classed as 2018 and you will use the 1270 allowance, so yes you have another allowance this year to use.

Naos

BrokenArrows wrote: »

It will be classed as 2018 and you will use the 1270 allowance, so yes you have another allowance this year to use.

I did not however register it with the Revenue yet. I was under the impression (as of today!) I should have done that by Jan 31?

ongarboy

Naos wrote: »

I did not however register it with the Revenue yet. I was under the impression (as of today!) I should have done that by Jan 31?

https://www.irishtimes.com/business/personal-finance/making-a-cgt-return-when-no-tax-is-due-1.2908799

According to above, if CGT gain is less than €1270, then you don't have to make a return so you are fine. If you had made an excess gain, you would have been late in filing your return after Jan 31st. Bear that in mind for the timing of future CGT gains you may make in excess of €1270

"Turning to the kernel of your question, the answer is that you do not have to file a capital gains tax return if the gain you have made in the year is below the €1,270 exemption limit."

Naos

ongarboy wrote: »

https://www.irishtimes.com/business/personal-finance/making-a-cgt-return-when-no-tax-is-due-1.2908799

According to above, if CGT gain is less than €1270, then you don't have to make a return so you are fine. If you had made an excess gain, you would have been late in filing your return after Jan 31st. Bear that in mind for the timing of future CGT gains you may make in excess of €1270

"Turning to the kernel of your question, the answer is that you do not have to file a capital gains tax return if the gain you have made in the year is below the €1,270 exemption limit."

Thanks for that, unfortunately I'm blocked by a Paywall on that link!

So although I have not yet cashed the cheque, does the money count towards 2018 or 2019 when it's cleared in the bank?

Because I have more to sell this year and it will be over 1270.

BrokenArrows

Naos wrote: »

Thanks for that, unfortunately I'm blocked by a Paywall on that link!

So although I have not yet cashed the cheque, does the money count towards 2018 or 2019 when it's cleared in the bank?

Because I have more to sell this year and it will be over 1270.

Its when you sold the shares that matters.
It doesnt matter when or if you deposit the money.

vargoo

"Reminder - CGT Deadline. If you sold, gifted or transferred an asset between 1 December and 31 December 2018, or if you received capital payments from such assets, you must pay any Capital Gains Tax due by 31 January 2019. For disposals between 1 January and 30 November 2018, payment was due by 15 December 2018."

Needlessly convoluted?

Supercell

On a related note, I've been wondering about CGT on shares purchased at different prices.

Say for example I bought 10 shares of ABC at €10 in January
Then in July I bought another 10 shares of ABC at €1
Now in December the current price of the fictional ABC is €5 and I sell 10 shares.

Can I claim a loss on the January shares purchased at €10 and offset it against something else I sold or is it based on average cost of the holding?

nompere

Supercell wrote: »

On a related note, I've been wondering about CGT on shares purchased at different prices.

Say for example I bought 10 shares of ABC at €10 in January
Then in July I bought another 10 shares of ABC at €1
Now in December the current price of the fictional ABC is €5 and I sell 10 shares.

Can I claim a loss on the January shares purchased at €10 and offset it against something else I sold or is it based on average cost of the holding?

Generally, it's "first in first out". So the December sale is of the shares bought in January. And you can claim your loss.

daheff

ongarboy wrote: »

https://www.irishtimes.com/business/personal-finance/making-a-cgt-return-when-no-tax-is-due-1.2908799

According to above, if CGT gain is less than €1270, then you don't have to make a return so you are fine. If you had made an excess gain, you would have been late in filing your return after Jan 31st. Bear that in mind for the timing of future CGT gains you may make in excess of €1270

"Turning to the kernel of your question, the answer is that you do not have to file a capital gains tax return if the gain you have made in the year is below the €1,270 exemption limit."

I'd be erring on the side of caution and letting revenue know. AFAIK you do need to declare gains/losses regardless as to whether you have CGT due.

Naos

daheff wrote: »

I'd be erring on the side of caution and letting revenue know. AFAIK you do need to declare gains/losses regardless as to whether you have CGT due.

Just to update the thread - I rang the revenue to let them know and they advised me:

1) I do not need to file as it was below 1250e gains.

2) CGT is counted from the point of sale, so as I sold on the 31 Dec 2018 but cashed the cheque in 2019, it's considered 2018 (as was said in this thread).