I understand that Ireland doesn’t have tax efficient investment options like an ISA in the U.K or a Roth IRA in the U.S.A but surely there some way to minimise the flat rate of 33% no? Currently I’ve just been making sure to only realise up to 1,270€ of profits per annum to avoid paying CGT. But as I’ve recently increased my portfolio and achieved higher profits I am looking for anyways to try and minimise tax hammering me.
How can I be tax savvy to avoid 33% CTG on stocks
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jamesandrewsmith46
New member
@shaniboek Does that 1270 reset at the start of every year? Like if someone was to make 1,200 this year in profit and then the value increased a further 1,200 the following year, so that they’ve made 2,400 in profit over the 2 years, they still wouldn’t have to pay any tax?
@jamesandrewsmith46 You cannot add the years together in that way. You have to realise the 1270 profit each year
@shaniboek Thank you
@reasonwithme How do you figure?
vulcanlogician
New member
@spinuscyn They mean the disproportionate ownership of housing, what do people need 1, maybe 2 houses? But it’s more like some people have 10, 20, 30
,50 houses, and others have zero. If the return from the stock market was much clearly higher than the return of owning/renting houses maybe things would slowly change
,50 houses, and others have zero. If the return from the stock market was much clearly higher than the return of owning/renting houses maybe things would slowly change
@vulcanlogician Am I missing something? CGT applies to properties as well. Stock investments are more liquid, more diversified, can adjust for risk by buying bonds, and higher pre-tax return. We just don't have a culture of stock investments
vulcanlogician
New member
@vulcanlogician And if you have stocks income tax applies to dividends. Likely people with properties are paying 40% paye so income is not tax advantageous
michaelsouby
New member
@glowing Could do EIIS Funds ( private unlisted Irish company's that are risky investments) but don't expect return for 5/6 years - get now 25% tax free. I think and used to be 40% (30 when make investment and 10 when redeem) , upside capped at 10% that you pay cgt on.
More info on type of tax efficient fund structure
https://www.eiismanagement.ie/
More info on type of tax efficient fund structure
https://www.eiismanagement.ie/
@michaelsouby This seems intriguing, So when investing in lump sums it can be used as a tax write off? and although CGT is capped at 10% if you have experience investing did you ever make more than 10% P/A?
michaelsouby
New member
@glowing How it works Example invest 100 in Dec 23, claim tax back of 30 in March 24 cost of investment 70(whenever do 23 tax return), wait 5/6 years get 110 back from your investment . claim tax back of 10 in year you disposed and pay cgt on the 10 of 3.3 your uplift.
That is how it used to work but think now a blended rate a tax claim is 25%
That is how it used to work but think now a blended rate a tax claim is 25%
@michaelsouby I will contact them see what the fees and returns are could be a solid idea. Thanks for the advice 