CGT on mixed investment portfolio allowable expenses.

victorcarrera

Has anybody any experience of this scenario.

Are entry, annual and exit fees paid to and intermediary/broker on a portfolio containing shares, non governmental bonds and gold allowable expenses. I am already aware of the annual €1270 CGT credit.

Or direct me to a resource that answers this query.

Thanks in advance.

Geuze

Trading fees, as in buying and selling commissions = yes.

Annual fees for simply having the account = no.

victorcarrera

Thanks. The financial advice practice charges 0.5% to arrange the portfolio with a company that manages the fund and they in turn charge 1% set up fee. Can I take it that the 1% is allowable because it is a commission for buying stock but the 0.5% is not? Likewise on exit.

Thereafter the annual cost is 1.8%. As it is a managed fund there is trading of the various assets during the year but I am not doing the trading. How does the client know at end of tax year what if any commissions / trades to claim against CGT? Does the client get notification of the cost of trading and can the client claim for them.

This is the only relevant info I found on revenue.ie

What are ‘allowable expenses’?

These are costs that you can deduct from the sale price to work out your chargeable gain. They can be:

• costs (for example, fees paid by you to a solicitor or auctioneer) when you acquired and disposed of the asset.

I understand that means the allowable expenses are not in addition to the €1270 exemption but are to be subtracted from the sale price prior to calculating the CGT.

Ultimately I'm beginning to think that Tax and financial advice + Fees+inflation+CGT+hassle versus Gain is not worth it when compared to a straight forward easy access 4% deposit account less DIRT.

Geuze

Be careful.

Managed funds in Ireland are subject to exit tax at 41%, not income tax and CGT.

My earlier reply applies to the situation where you hold the stocks and bonds directly.