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UCIT/ETF exit tax query?

  • 05-03-2018 09:06AM
    #1
    hometruths
    Registered Users, Subscribers, Registered Users 2 Posts: 6,747 ✭✭✭


    Having read about the 40% exit tax on unit trusts, etfs etc I am still a bit confused. I plan to sell some that I inherited. I don't plan to hold for 8 years.

    Am I right in thinking it is is simply 40% tax on any gain incurred? And that this cannot be offset against any losses?


Comments

  • #2
    topper_harley2
    Registered Users, Registered Users 2 Posts: 537 ✭✭✭topper_harley2


    Not as simple as that!

    It depends on how/when they were bought. If they were bought pre-2001, i have no idea. See here for importance of 2001 https://www.irishtimes.com/business/personal-finance/should-i-pay-capital-gains-tax-or-exit-tax-on-my-investment-1.3187588?mode=amp

    Post 2001.. . As you say, losses can't be offset BETWEEN ETFs so each ETF is independent. However, within each individual ETF, losses can't be offset either. Hence, if there was only 1 purchase then it's exit tax on purchase vs sale price, simple(r). If they were bought in many transactions, it's purchase of each profitable tranche vs sale price, ignoring losses on other (loss-making) tranches. Total nightmare... you need complete records of the purchases to be sure.


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