profits on stock market

beaufoy · 08-12-2019 11:15am #1

i assume cgt is charged on stock market profits
are they charged on the amount of profit shown when funds are withdrawn, or do i have to inform the tax authority of my profits (on paper) each time i write a tax return
i assume if i lose money on the stock market said loses can be calculated against profits i make on other business ventures

relax carry on · 08-12-2019 11:28am

beaufoy wrote: »

i assume cgt is charged on stock market profits
are they charged on the amount of profit shown when funds are withdrawn, or do i have to inform the tax authority of my profits (on paper) each time i write a tax return
i assume if i lose money on the stock market said loses can be calculated against profits i make on other business ventures

Bit of reading in order.

https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/how-to-calculate-cgt.aspx

Calahonda52 · 08-12-2019 11:29am

CGT is ring fenced to CGT gains and losses and not transferable to other tax heads.
Do you hold the shares in your own name or are they managed for you.
.
Gains and losses generally only arise when there's is a disposal.

beaufoy · 08-12-2019 11:44am

i hold etf's and standard shares in a degiro account in my own name. If i sell one share and keep the money in the degiro account to buy another share i assume that is not counted as a disposal

daheff · 08-12-2019 11:50am

beaufoy wrote: »

i hold etf's and standard shares in a degiro account in my own name. If i sell one share and keep the money in the degiro account to buy another share i assume that is not counted as a disposal

Yes it is counted as a disposal.

Also as you have etfs, be aware of the 8 year deemed disposal rule and that etfs are not taxed like normal shares unless they are under a specific UCITS type.

beaufoy · 08-12-2019 12:13pm

daheff wrote: »

Yes it is counted as a disposal.

Also as you have etfs, be aware of the 8 year deemed disposal rule and that etfs are not taxed like normal shares unless they are under a specific UCITS type.

thanks for info.The tax on shares sold to buy other shares seems to discourage short term trades
The shares i have sold showed a large profit therefore it would seem logical to sell some of the shares which made a loss in order to reduce my 2019 tax liability
Does the tax year for CGT run jan 1-dec 31 same as income tax. Is there an extra tax free allowance for CGT

Calahonda52 · 08-12-2019 12:17pm

1,270 euro personal reduction in the taxable gain. NOT from the TAX PAYABLE
For normal shares, ie not in the etfs etc, losses on disposal can be carried forward, and must be used before the 1,270 gets taken off

profits on stock market

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