Shares For Sale

gerbear69

I have over the last 5 years saved every week in my job to purchase shares , they have thankfully risen substantially in the last 5 years.

Is there any way I can get around paying the ludicrous 42% DIRT tax?? could I split up the shares and give them as "gifts" to family members???? I pay my fair share in taxes every week, I'm a single parent who has never taken a penny off the state, I just want to enjoy what I have saved for. Thanks in advance

D3PO

why would you be paying DIRT ? Share profit isnt interest.

You have to file a return and will be paying CGT on the profit.

However €1270 of profit per year is tax free.

So instead of selling everything at once if you play the long game and only sell an amount that will net you less than that in profit yearly then you will not have any tax liability. Of course depending on how many shares you ahve and how much profit you ahve to release that may not be a viable option for you.

clint_silver

gerbear69 wrote: »

I have over the last 5 years saved every week in my job to purchase shares , they have thankfully risen substantially in the last 5 years.

Is there any way I can get around paying the ludicrous 42% DIRT tax?? could I split up the shares and give them as "gifts" to family members???? I pay my fair share in taxes every week, I'm a single parent who has never taken a penny off the state, I just want to enjoy what I have saved for. Thanks in advance

Well, to be pedantic, you didnt save the profit and you dont pay tax if you wanted to sell the shares for the same price you bought them for.

Since 2012 You pay CGT of 33% on the gain on your investment. You cant avoid that tax bill, other than the annual 1270e allowance.

Tax evasion of not paying the self assessed capital gains tax come october is not recommended. If you get audited, you get hit with Penalties & accrued interest which would out weigh any CGT you would have paid in the first place.

If you have shares that have taken losses you can offset the losses IN THAT year for calculating overall tax.

you can offset any expenditure like broker fees.

you could have transferred some shares to a spouse to avail of secondary 1270 tax allowance but not applicable here if youre single.

If youve made substantial money, you need to look at your own financial situation to say whether to cash out or not.

say you bought at 1000, and shares now worth 31270 = 30k taxable. 33% tax. you clear 20k and write revenue a cheque for 10k in october.

either that or sell each year for next 20 odd years leaving you only with 1270e profit each time. risking shares falling. up to you really but theres no getting away from it.