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“Deposit rates are so low and then you have to pay 41% DIRT” is a very common complaint from people who are referred to us here at Metis Ireland. This of course is a fact of life and, as the Government are trying to encourage spending, DIRT rates are likely to remain at record high levels.

 

Another common grumble is that life assurance exit tax is also 41%! No matter where you go to invest your hard earned cash, there’s a hefty tax bill waiting for you at the other end.

 

So, are there any alternatives for the lump sum investor? At Metis Ireland, we’ve come up with a simple yet really effective way of (potentially) making your lump sum investments more tax efficient. If you structure your investment so that it is liable to Capital Gains Tax, you are reducing your tax rate on investment gains to 33%. 8% less tax on your gains straight away. Less tax has to be a good thing right?!

 

Furthermore, we’ve found with many clients that they have accumulated capital losses over the last few years either in property deals or other types of investments that haven’t worked out. If you are in this category and you invest in an investment portfolio that is liable to Capital Gains Tax, any investment gains you make will effectively be tax free. This is because you are entitled to offset previous capital losses against your gains.

 

Now, we aren’t tax advisers here at Metis Ireland but we’ve done enough research on this topic to know that this method of tax efficient investing merits consideration for almost everyone who has a lump sum to invest.

 

Why not ask your tax adviser/accountant to look into this on your behalf? We are happy to sit down and discuss this with your trusted advisers. We have worked with lots of clients’ third party advisers over the past 6 months on this topic. After all, if you can cut down on your tax bill by being prudent, wouldn’t you like to know what all of your options are?

 

Talk to Carl Widger or Karl Daly about structuring your investments in the most tax efficient manner possible.

 

cwidger@metislife.ie

kdaly@metislife.ie

 

Metis Ireland Ltd t/a Metis Ireland is regulated by the Central Bank of Ireland. All content provided in these blog posts is intended for information purposes only and should not be interpreted as financial advice. You should always engage the services of a fully qualified independent financial adviser before entering any financial contract. Metis Ireland Ltd t/a Metis Ireland will not be held responsible for any actions taken as a result of reading these blog posts.