Capital Gains Tax – Treatment of allowable losses

Capital Gains Tax (CGT). Allowable Capital Losses. Form 11 Tax Returns. CG1 Returns. Revenue Guidance.

Revenue have confirmed in today’s guidance, ebrief No. 124/20, that there is no requirement for a person to include a capital loss in a tax return (Form 11 or Form CG1) for the chargeable period in which the loss arises in such circumstances where there is no chargeable gain, arising in the same chargeable period, against which it may be offset.

Revenue’s Tax and Duty manual Part 19-02-05, which deals with the treatment of allowable Capital Gains Tax (CGT) Losses, has been updated.

Paragraph 5.1 clarifies Revenue’s position that, where an allowable loss arises in a chargeable period and there is no chargeable gain arising in the same chargeable period against which it may be offset, then there is no obligation for a person to include the loss in a tax return for the chargeable period in which the loss arises.

For further information, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-19/19-02-05.pdf

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.