ETF's

Heraclius

ryanch09 wrote: »

As far as I know you don't actually get extra 'shares' of that ETF, so there's nothing for you to track, I could be wrong though, I started investing in accumulating ETFs in July 2020 and haven't seen anything to indicate that I got any extra shares from reinvested dividends, I think the reinvestment is just reflected in the overall price of the ETF (I am open to correction from anyone if I'm misunderstanding)

Thanks for the information:) I keep putting off investing in an ETF because I'm afraid of getting the tax declarations wrong and ending up in hot water with revenue.

handlemaster

With the very high valuations currently of stocks e.g. Tesla , ETF could be viewed as being considerably more risky than they have previously perceived.

Bobeagleburger

HillCloudHop wrote: »

Could you use Investment Trusts as an alternative to ETFs?
Have to pay management fees, but taxed as a stock and no messy deemed disposal rule.

You can buy Investment Trusts on DeGiro.

33% CGT rather than the 41% exit tax mess.

Diarmuid

cowboyjoe wrote: »

My question is do I need to notify revenue I bought these ETF's? Even though I have no intention of disposal. I am well aware of the deemed disposal exit tax after 8 years.

You don't have to notify Revenue.

I think you're missing the point here. If you don't dispose of (some) of them to pay the tax on the gains, then you have to fund the tax with capital from elsewhere, which you have to save outside the ETF. This capital *is* effectively money you would have put into the ETF in the absence of the deemed disposal rule. So in effect you are making the situation worse!. It's likely that you would do better to fund the investment to the 100% of your capital and then sell some to pay of the tax than fund 80% (say) holding 20% in cash to pay the deemed disposal tax.

PietroM

Hi guys, I have more questions on ETF investing in Ireland if you don't mind:

As an example, Imagine an investment of 100K on an ETF:

1. At year 8 I register a gain of 10K, I pay 4.1K tax on unrealized gain.
   1. At year 9 the ETF falls at 90K and I am forced to sell. Can I ask the reimbursement of the 4.1K paid?
   2. Would anyone know how much I need to sell if I decide to pay the 4.1K taking money directly from the ETF? Do I pay taxes on the money I am taking to pay taxes? How would that work?
2. At year 8 I register a loss of 50K, I pay no taxes on the unrealized gain.
   1. At year 9 ETF raises again at 100K and I am forced to sell. Will Revenue consider this as a gain of 50K since year 8 or no gain considering the original investment?
3. At year 6 I decide to leave Ireland permanently for another European country. Do I need to pay any tax in Ireland before leaving? Am I forced to sell my positions? If this happens at year 10, the other European country will ask me Capital gain on the total gain, will I be able to deduct the taxes I already paid in Ireland at year 8 (assuming double taxation agreement) or ask Revenue for reimbursement?
4. I understand losses on one ETF cannot be used to offsets gains in stocks, but what about other ETF?
5. Did anyone make simulations of the real impact of deemed disposal rule on ETF investing? I suspect the ETF must generate very high yield (i.e. very high risk) to provide reasonable returns (considering hyperinflation)

Thanks for your help