Margaret, a higher rate taxpayer, sells some shares in June 2020 and has a chargeable gain of €6,700. How much Capital Gains Tax will she be liable for if this is her only asset disposal in 2020?

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Prepare for the QFA Investments Exam 1. Study with flashcards and multiple-choice questions with detailed explanations. Enhance your understanding and succeed on your exam!

Multiple Choice

Margaret, a higher rate taxpayer, sells some shares in June 2020 and has a chargeable gain of €6,700. How much Capital Gains Tax will she be liable for if this is her only asset disposal in 2020?

The key idea is how Capital Gains Tax is calculated on a disposal: apply the annual CGT exemption, then tax the rest at the applicable rate.

In Ireland, individuals pay CGT at 33% on the chargeable gains after deducting the annual exempt amount. Since this is Margaret’s only asset disposal in 2020, there are no other gains or offsets to consider. Start with the chargeable gain €6,700 and subtract the annual exempt amount of €1,270 for 2020, giving €5,430 of taxable gain. 33% of €5,430 is €1,791.90, which rounds to €1,792. Therefore, the Capital Gains Tax liability is €1,792.

Margaret, a higher rate taxpayer, sells some shares in June 2020 and has a chargeable gain of €6,700. How much Capital Gains Tax will she be liable for if this is her only asset disposal in 2020?

Prepare for the QFA Investments Exam 1. Study with flashcards and multiple-choice questions with detailed explanations. Enhance your understanding and succeed on your exam!

Margaret, a higher rate taxpayer, sells some shares in June 2020 and has a chargeable gain of €6,700. How much Capital Gains Tax will she be liable for if this is her only asset disposal in 2020?

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