CGT Calculation

PaoloGotti

Hi,

If one has say €150k worth of shares which cost €100k, is it correct to say that CGT is only liable once above €100k worth are sold?

If so, let’s say one sells €10k per year for ten years (100k total). From then each sale is liable for 33%? How is that declared on a tax return?

Cheers for any replies.

nompere

https://www.boards.ie/discussion/2058330359/cgt-calculation

That's not how it works.

Suppose you sell shares that are now worth €15,000, which is 1/10th of your holding. They have a cost of €10,000 (1/10th of the total cost), so there's a gain of €5,000. So, the tax is 33% of €15,000 less €10,000, less your allowance of €1,270 per year. That's €1,230.90.

If you sell €10,000 of shares, they have a cost of 1/15th of €100,000, which is €6,667, so the gain is €3,333. If you haven't already used it, deduct the personal allowance, and the tax is 33% of that number.

And so on ...

PaoloGotti

Thank you very much, really appreciate your help.