Cashing out on stocks with Revolut. How does tax work?

Pompous

Do I pay tax on the dollar amount of profits? Before paying the currency exchange fees?

Or do I pay tax on the euro profit that gets transferred back into my bank account?

Do Revolut tell Revenue how much I made? Or do I have to inform them myself?

I know I have a tax credit on capital gains up to around €1250 and it's 33% thereafter but I don't know how to pay it or what the particulars are.

Browney7

Pompous wrote: »

Do I pay tax on the dollar amount of profits? Before paying the currency exchange fees?

Or do I pay tax on the euro profit that gets transferred back into my bank account?

Do Revolut tell Revenue how much I made? Or do I have to inform them myself?

I know I have a tax credit on capital gains up to around €1250 and it's 33% thereafter but I don't know how to pay it or what the particulars are.

I use the difference between the € amount needed to purchase the exposure with the brokerage fees allowable and the € amount received after paying fees. I'm not sure what happens if you sell a holding and leave it sitting in dollars/£ after sale however.

Diarmuid

I calculate the tax on the euro profit. Revenue treat currency gains like any other asset

Whether Revolut inform or not, you have to submit a return. Use your online Revenue account (MyAccount) to declare the income.

Thierry

I believe in that case there are two types of tax:

1- tax on the shares themselves:

date A: Bought for $1000 shares

date B: Sold same shares at $3000

so profit is $3000-$1000 = $2000

2- tax on dollar exchange at different dates.

Date A: $1 = €0.85

Date B: $1 = €1

so in term of shares value:

Date A: €850

Date B: €3000

Profit is actually €3000 - €850 = €2150

So the profit here is: $3000*(value of dollar at date B) - $1000*(value of dollar at date A)