CGT Annual Exemption

cronos

Hi there,

I bought my first shares this year and have not sold any yet. I'm up 3k (without having sold anything) overall across the 4 companies I've invested in.

I'd like to best make use of the CGT Annual Exemption but even after reading the article I'm slightly confused. Also what form do I need to fill once I've worked out what to sell. The below is the performance of the 4 companies I've invested in as of today.

+3,376.00 (+33.76%)
+266.20 (+5.31%)
-36.75 (-0.74%)
-781.70 (-13.16%)

https://www.moneyguideireland.com/tax-on-selling-shares-in-ireland.html

Thank you

Taylor365

Are the stocks a secret? :pac:

Form CG1

Sell and rebuy to the amount of 1270 gain. Whether this is ok, until otherwise who knows, but to quote a certain poet, "Don't quote me boy, 'cause I ain't sayin' $hit".

cronos

Taylor365 wrote: »

Are the stocks a secret? :pac:

Form CG1

Sell and rebuy to the amount of 1270 gain. Whether this is ok, until otherwise who knows, but to quote a certain poet, "Don't quote me boy, 'cause I ain't sayin' $hit".

Didn't think it mattered for tax purposes so just didn't put it in.

Boohoo
Crosshair Gaming
JFrog
Nio

Taylor365

Also, don't forget 4 week rules apply to transactions:

https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/selling-or-disposing-of-shares.aspx

cronos

OK so I don't need to have sold by the 30th of November. It's within the full calendar year. So I can sell anytime up to the end of December. So just sell enough to make a profit below the mark and don't rebuy within 4 weeks?

Taylor365

Rules state:

Sell and buy to harvest a loss - no - not allowed to sell for purpose of loss harvesting.

But..

Sell and buy to crystallize a gain - yes - does not say anything about this, only that they cannot be offset against other gains.

Paylesstax.ie also breaks this down:

Use of Annual Tax Free Exemption

The annual tax free exemption must be used up every year. It cannot be carried forward from year to year.

If you have shares that have increased in value you could make a disposal of a sufficient number of shares each tax year to give a gain of €1,270 which is equal to the annual tax free exemption. The shares disposed of can be immediately re-acquired if you wish to retain ownership of them.

These transactions are referred to as “Bed & Breakfast” sales/repurchase. You need to check the charges e.g. Stockbrokers and Stamp Duty costs, for dealing in such transactions and compare it to the tax saving.

Losses on Shares

If you have shares which have gone down in value and you wish to use the loss incurred on the shares against other gains then you must dispose of the shares in the same tax year as other shares sales upon which you have made a gain.

Sometimes you may want to keep the shares which have gone down in value in the hope of them increasing in value in the future. To get the tax benefit of the reduction in value you must dispose of the shares. You can, if you wish, re-acquire the shares but you must wait for a period of four weeks before doing so to ensure that the loss realised can be offset against other gains. This is one of the so-called Bed & Breakfast anti-avoidance rules.

bfa1509

Taylor365 wrote: »

Rules state:

Sell and buy to harvest a loss - no - not allowed to sell for purpose of loss harvesting.

But..

Sell and buy to crystallize a gain - yes - does not say anything about this, only that they cannot be offset against other gains.

Paylesstax.ie also breaks this down:

Not sure what you are saying here. The first line you say you are "not allowed sell for the purpose of loss harvesting" - I assume you mean not allowed to sell and buy within 4 weeks per the paylesstax.ie paragraph?

On the second line you mention crystallizing gains and how "they cannot be offset against other gains". Not sure what you mean by this, can you clarify?

Taylor365

bfa1509 wrote: »

Not sure what you are saying here. The first line you say you are "not allowed sell for the purpose of loss harvesting" - I assume you mean not allowed to sell and buy within 4 weeks per the paylesstax.ie paragraph?

On the second line you mention crystallizing gains and how "they cannot be offset against other gains". Not sure what you mean by this, can you clarify?

Sell and rebuy rule.


No - to offset losses against gains
Yes - any other reason.