CGT loss offset

Rader200 · 26-07-2014 08:59AM #1

Hi

I've a CGT query that I'd be very grateful for any help on.

My wife made a CGT loss on a business a few years back. We're jointly assessed for tax and the CGT loss was recorded in our Form 11 filing with Revenue against my wife's name. I've made a small capital gain this year. My query is - can I offset this gain against the loss my wife had? I've tried to find some guidance on Revenue.ie, but I can't find a direct match.

Thanks

Eoin

Alan Shore · 26-07-2014 10:18AM

CGT loss on a business.

Did she buy shares or goodwill?

Rader200 · 26-07-2014 05:19PM

Hi Alan

The loss was from the sale of shares in a business.

Eoin

barneystinson · 27-07-2014 04:58AM

Rader200 wrote: »

Hi Alan

The loss was from the sale of shares in a business.

Eoin

Do you mean shares in a company? Not nitpicking but it's an important distinction.

Rader200 · 27-07-2014 08:11PM

Hi

It was from the sale of shares (25%) in a company.

mozattack · 28-07-2014 01:40PM

The answer is "no" but with a bit of foresight and actually paying a tax advisor it could have been sorted, subject to this and that.

Husband has asset subject to gain.

Husband transfers asset to wife.

Wife takes over original base cost etc.

Wife sells asset and crystallises gain.

Gain c/f clears current year gain.

mozattack · 28-07-2014 01:41PM

[I am assuming above that the loss is a loss for CGT purposes, e.g. in this case the shares were purchased etc]

Mr. Incognito · 28-07-2014 02:24PM

You are jointly assessed?

It appears that you were jointly assessed at the time of the loss and the subsequent disposal and as such can offset one against the other

http://www.google.ie/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CB4QFjAA&url=http%3A%2F%2Fwww.revenue.ie%2Fen%2Fabout%2Ffoi%2Fs16%2Fincome-tax-capital-gains-tax-corporation-tax%2Fpart-44%2F44-02-01.pdf%3Fdownload%3Dtrue&ei=5FDWU5KyLomP7AbIz4CgDw&usg=AFQjCNGwbmJhGGoNdZcntfpxg-yy8uFYzg&sig2=3XHkcNLMazmum1wGW16BZQ&bvm=bv.71778758,d.ZGU

mozattack · 28-07-2014 02:43PM

Mr. Incognito wrote: »

You are jointly assessed?

It appears that you were jointly assessed at the time of the loss and the subsequent disposal and as such can offset one against the other

http://www.google.ie/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CB4QFjAA&url=http%3A%2F%2Fwww.revenue.ie%2Fen%2Fabout%2Ffoi%2Fs16%2Fincome-tax-capital-gains-tax-corporation-tax%2Fpart-44%2F44-02-01.pdf%3Fdownload%3Dtrue&ei=5FDWU5KyLomP7AbIz4CgDw&usg=AFQjCNGwbmJhGGoNdZcntfpxg-yy8uFYzg&sig2=3XHkcNLMazmum1wGW16BZQ&bvm=bv.71778758,d.ZGU

True:

"Surplus losses of one spouse or civil partner can be set against gains of the other spouse or civil partner in a year of assessment, regardless of whether they arise in the current year or have been carried forward from prior years (including years prior to the date of marriage or registration of the civil partnership)."

Rader200 · 28-07-2014 04:46PM

That's good news! Yes - we are jointly assessed. Thanks very much for the assistance.

ucd.1985 · 28-07-2014 05:31PM

mozattack wrote: »

The answer is "no" but with a bit of foresight and actually paying a tax advisor it could have been sorted, subject to this and that.

You are wrong.

Plus no need for the smarmy "actually paying a tax advisor" comment.

Alan Shore · 28-07-2014 09:43PM

Also make sure that she paid for the shares and not a loss related a loan to the company which people often confuse.

CGT loss offset

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