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I have what many here would regard an extremely basic (or even silly) question on capital gains tax (CGT) and stocks.

I have an account with an online trading platform. Over the course of the year I have sold some of those stocks and bought others. When it comes to doing my tax returns do I declare profits that I made on the sale of stocks even though I haven't withdrawn funds from the trading account or is it only when I withdraw funds that I declare the profits for CGT.

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    You declare them on your taxes. Withdrawal has nothing to do with it. Unless you traded inside a tax favored account such as an IRA. – Pete B. Oct 12 '16 at 19:40
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    which country's CGT are you talking about here – Pepone Oct 12 '16 at 19:40
  • @Pepone Sorry - should have mentioned. It's Ireland. Although I think Pete B has answered what I suspected alright i.e. that withdrawing the money has nothing to do with it. It makes sense but I just wanted to be sure. Thx. – Tomás Oct 12 '16 at 19:55
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    Unlike the us? We too tax only income/profit, unless you're talking about a tax-deferred retirement plan. – keshlam Oct 12 '16 at 23:35
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    As others have noted, you are liable for CGT once you sell your shares. In Ireland you have an annual Capital Gains Tax allowance of EUR 1,270 on your net capital gains. The balance is taxed at 33%. So, for example, if you made capital gains of EUR 5,000, then after the allowance of 1,270 you would have a tax liability of 33% of 3,730, which equates to 1,230.90 in taxes. – Nick R Oct 13 '16 at 0:06
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Making or losing income (via selling shares) is the taxable event, not moving the income you made to and from an account.

The only exception would be a special account such as an IRA, and then there would be rules specific to that account structure about when you can withdraw money and what the tax consequences are.

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  • IRA? OP is in Ireland, not US. – JoeTaxpayer♦ Nov 8 '16 at 3:44

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