Calculating CGT on selling shares

fjon

I've done a search, and seen that this has come up a lot, but just wanted to check.
I sold some shares, say they were worth 5k. From looking here:

http://www.fixmytax.com/capitalgains-summary.html

It seems that the first €1,270 is exempt (I only have one of these exemptions a year), and the rest is taxable at 20%.
So the tax payable on €5000 is:
5000-1270 = 3730
20% of 3730 = €746

Now I believe the tax year is up at the end of Sep, and this needs to be paid at the end of Oct. If I sell more share after this, would this be considered another tax year, and would I have my €1270 exemption again?

kenco

AFAIK the exemption is annual (i.e. calendar year)

Also if you have sold any shares you have made a loss on the the loss can be used against the gain for calculation of CGT.

Also to be clear when you say the worth of the shares what do you mean? Is this what they were sold for or the actual profit you made on them? If you purchased them for say 2000 and sold them for 5000 then your CGT is 3000 and that is what you take the exemption from

fjon

kenco wrote: »

AFAIK the exemption is annual (i.e. calendar year)

Also if you have sold any shares you have made a loss on the the loss can be used against the gain for calculation of CGT.

Also to be clear when you say the worth of the shares what do you mean? Is this what they were sold for or the actual profit you made on them? If you purchased them for say 2000 and sold them for 5000 then your CGT is 3000 and that is what you take the exemption from

Thanks for the quick reply!
So I'm better off waiting until 2009 to sell any more then.
Do the rest of the calculations look correct?

LightningBolt

Don't forget that you also deduct the cost of buying the shares also! CGT is only done on the actual gain that you make.

fjon

LightningBolt wrote: »

Don't forget that you also deduct the cost of buying the shares also! CGT is only done on the actual gain that you make.

Oh, really? So from the money that I've received, I need to deduct what I originally paid for the shares, and then work out the tax on that?
That would only end up as €100-200, which seems awfully low.

kenco

Yes the calcs seem fine. Note the annual exemption cant be rolled forward and is a once off each year.

However I think (though am not 100% sure) that you can use losses from previous years to off set the gain in any particular year. I know people who did this in recent years with the loss that they incurred over the Eircom share debacle.

To be honest you are best off calling revenue and asking them as from my experiences they are very helpful and if they can save you a few quid they will do.

fjon

Thanks!
I didn't find them too helpful in the past which is why I was looking on here. I just gave them a call though and was informed that I need to pay RTSO, not CGT. Works out dearer, but oh well.

LightningBolt

fjon wrote: »

Thanks for the quick reply!
So I'm better off waiting until 2009 to sell any more then.
Do the rest of the calculations look correct?

Ye you may be better off although you will also have to use a part disposal rule to work out exactly how much you'll need to pay which makes things a bit more awkward.

It's basically Gross Proceeds x A/(A+B)

Take away your annual exemption and whatever is left deduct CGT at 20%