3 Ways to Avoid Capital Gains Tax (Legally) in Ireland

In this video, we're talking about 3 ways to avoid capital gains tax (legally) in Ireland. Capital gains tax in Ireland is charged at a rate of 33%. The 3 ways to avoid capital gains tax that we'll be discussing are: not selling, the annual CGT exemption and the utilization of realized capital losses. Let's talk about each of these in detail!

Intro 0:00
Don't Sell 1:38
Annual CGT Exemption 5:02
Loss Utilization 11:10
Closing Words 17:42

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*Malone Financial is affiliated with the aforementioned companies. Malone Financial receives a commission for any customer conversions realized via the affiliate links. This video includes my own opinions (which do not reflect the opinions of said companies). Investing involves a risk of loss. Nothing mentioned in this video should be construed as financial advice.

[malone_financial]

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Note: At 14:47 I state that, for Scenario 1, you shouldn't buy any additional shares in the company in the 4 weeks prior to sale. In reality, this wouldn't be necessary for two reasons: a) if you don't want to own the stock anymore you likely wouldn't be buying and b) if your intention was to sell your full holding, then buying 4 weeks prior to sale wouldn't make a difference. Halting your buying activity in the 4 weeks prior to realizing a loss-making investment is only necessary where your intention is to realize a loss-making PORTION of the investment (i.e. selling some but not all of the investment).

[furiousfelicia]

Ok this channel is now on top of my subs list. I know 0 about the financial world and investing but I decided to make it my priority from now on, and this is the kind of content I need.

[Clarke]

I will be facing this very hurdle soon. My first thought was to do nothing and just not sell. The Irish government really needs to re-evaluate the CGT rate. 33% is daylight robbery!

[jamieosz]

Picked up an old "Tab Guide" from 1999/2000 off the shelf and gasped when I saw the CGT rate was 20% back then, amazing what a difference 13% makes :-D

[nh]

I just moved home after being away for 10 years. Happy to have found this channel. I'm interested to learn more about ISA accounts for investing in stocks and shares.

[Daniel-OConnell]

In real terms CGT is far higher than 33%. It is derived from the value of something in 2002 with no allowance for the cumulative inflation of about 70% since. So if you bought something valued at 100k in 2002 and sold it for 150K in 2024 you would actually have lost 20K in real terms, but would still be liable for 16, 666 in CGT.
You don't even have to sell an asset it can be forced off you through Compulsory Purchase and you still have to pay CGT with no rollover relief.

[kivylius]

Great video! Hope to see company tips series, I’ve like to use my company funds to make more, and not deprecate with inflation.

[Lilliandel]

Love your content- clear and concise.

You would consider making a video about Irish citizens who set up limited companies offshore (eg in a jersey, Isle of Man) to avoid capital gains tax.

[juliyansilva]

I think this channel is the only and best channel for Ireland based investments. Thank you for your hard work gathering all these info!.
I do have a question too, so does CGT applies if we get profits from stock dividends?

[adrianheffernan]

Thanks for the video, the annual cgt allowance hasn't increaseed since we had the punt when it was £1000IR, it should be double or triple that now due to inflation
This is another example of the Irish government screwing its own investor citizens with massive taxes, while letting foreign investors off with low / zero taxes- zero non domicile taxes unlimited time period, zero withholding taxes for foreign investors etc

[ivanschannel]

More videos about the tax please. Thank you

[TheDanieldineen]

Maith thú Dan, any chance you would do a video on tax strategies for sole traders in the service industry? 👍

[ecrypto]

great info thanks! have loads of realised losses to work with

[pushp]

Good informational / educational video Dan. It would be really helpfull if you could provide link in the description to download the excel sheet where we can just play around with the values and learn how we can make the best out of it.

[scottfarrell]

Nice info mate, started investing a few months ago (knowing CGT was pretty heavy in Ireland). Ridiculous rate of tax for risking your own money to be completely honest

[gardenjoy]

There is also a fee of selling stock and a fee of buying stock, or is there not? Transactions cost time and thus cost money, usually.

[gerkelly]

Lovely video Dan!

Know its more of a political question but do you believe it's likely for the CGT rate in ireland to change? Quite surprised to see it so high given Irelands typical status as an investment magent although I guess thats primarily on the corporate side.Bbut surely *certain* companies presence in Ireland is pressuring the givernment to lower the rate to be competitive?

[jamieosz]

Thanks, knew most of this except for LIFO/FIFO stuff but content specific to Ireland like this is badly needed, we've kind of been handed a dud hand in terms of jurisdictional tax regulations. 😕

Wondering whether the tax rate on dividends from an ETF are subject to the CGT or ETF rate..CGT i assume? If so, some ETFs like CSAV (CAD) or HISU (USD) could provide better "interest" rate compared to currently available deposit savings rates, particularly if paired with CGT exemption allowance and offsetting with capital losses..

Finding a brokerage that allows trading those ETFs may be tricky though, tried on IBKR and they're there but restricted due to lack of some EU regulatory document.

[Zigzag-k]

What about day stock traders who are doing option trading, swing trading etc, is only CGT 33% applicable ?

[declanmcardle]

@0:40 where's this 19.14% rate coming from and can we all have some of it? I have Warren and Charlie on the other line...