|
|
Capital
losses
The state of the Stock Market means that many people will have capital losses in their investment holdings. You can hold onto these investments and hope that they will recover, but if you have gains above your annual exemption this year, it may be worth triggering the losses by disposing of the shares in order to save tax this year.
Some people will have made gains in the last boom, and have current losses. It is frustrating that you cannot generally get back CGT paid in earlier years on account of current losses. However, it is possible to recover that
CGT, by "reinvesting" in a new qualifying Enterprise Investment Scheme company. Although such investments are risky, the CGT recovery and income tax relief on investment provide a substantial return straight away, reducing the exposure significantly.
In 2003, the Revenue changed their view of the calculation of gains on shares which were acquired by employees in share option schemes. If the employee paid income tax on the exercise of the options, it is likely that gains previously reported ought to be losses, and small losses ought to be larger losses. Most of those affected will already know about this, but if you have ever paid income tax on the exercise of employee share options, and you haven't done anything about losses in 2003, it's worth investigating.
| Action Point! |
Do You Have Losses Which Could Save You Cgt?
Have You Ever Paid Income Tax On Share Options? |
|
