Maximise CGT exemption

Fol20

Hi Guys,

THE CGT exemption is 1270 and im trying to see how i make the best of the situation.

Situation 1:

Year 1
Bought shares for 1000
Now valued 2270.

Can i sell them for 2270 and then buy them back again on the same day for 2270 and pay 0 tax.

Year two
Shares bought for 2270
Now valued at 3k. Sell them and buy back at the same value on the same day.
Rinse and repeat.

Situation 2:
Shares bought under one persons name for 1k in degiro
Now valued at 3540k

Person is married.Can they "gift"some of their shares to their partner so they in essence have an exemption of 2540?

Calahonda52

IIRC, there is a 4 week gap requirement to avoid the bed and breakfast rules.

Fol20

Calahonda52 wrote: »

IIRC, there is a 4 week gap requirement to avoid the bed and breakfast rules.

Do you have any link I could read to take a look. Iv been trying to find something on it and couldn’t see anything on citizens information

How about the second option as well?

Calahonda52

Fol20 wrote: »

Do you have any link I could read to take a look. Iv been trying to find something on it and couldn’t see anything on citizens information

How about the second option as well?

If you google it you will find it in askaboutmoney site.

there is tax free transfer of assets between married couples
https://www.revenue.ie/en/life-events-and-personal-circumstances/marital-status/marriage-and-civil-partnerships/transferring-assets-between-spouses-or-civil-partners.aspx
.
MY QUESS is that the transfer must be done at current market price, so while you don't pay CGT and the other side doesn't pay CAT, you can't transfer it at original cost and let your partner avail of the 1270 as if she had owned the asset from day 1.
I don't know so needs further work!

tanit

Transfers of assets between married people are free of tax. The transfer effectively does not happen (hence no CGT or CAT) and the partner receiving the asset "steps into the shoes" of the other partner. That means that the partner receiving the asset is considered to have obtained the asset the date the original partner got it and at the same valuation at the time of first purchase by the original partner.

• Partner A buys shares of 1,000 in 2010
• Partner A transfers shares to partner B in 2020. They are valued in the market as 2,000
• Partner B is considered to have acquired those shares in 2010 at 1,000 for any disposal purposes that take place in the future.

You do not avoid paying CGT you are just simply transferring the liability to the other partner, if they opt to dispose of that asset to a third party. If the liability falls under the threshold for Partner B, they will not pay any tax. But good luck getting the money from them

Fol20

Calahonda52 wrote: »

IIRC, there is a 4 week gap requirement to avoid the bed and breakfast rules.

One more quick question in relation to bed and breakfast rules.

I know you cannot crystallise a loss due to the rules but what about if you have a profit of 1270 from sell a stock?

Can i sell a stock today with a profit of 1270 and buy it again tomorrow or do i have tax implications or not use the cgt exemption then?