P
paddy
Guest
Hi,
I am in a 50% shareholder in a company in which there is one other 50% shareholder. The other shareholder is leaving and transferring 49 of the 100 issued ordinary shares to me and 1 to another person at nominal value of €1 per share. The company has carried forward losses. I have been advised by my tax advisor that because of the carried forward losses, the shareholder disposing of the shares will be liable to CGT on their portion of the losses, i.e. 50%.
This sounded odd to me as there does not appear to be any "Gain" here. So I checked with another tax advisor who says this is not the case. Just wondered if anyone on here had any thoughts to add, suppose best bet is to contact Revenue for clarification. Thanks.
I am in a 50% shareholder in a company in which there is one other 50% shareholder. The other shareholder is leaving and transferring 49 of the 100 issued ordinary shares to me and 1 to another person at nominal value of €1 per share. The company has carried forward losses. I have been advised by my tax advisor that because of the carried forward losses, the shareholder disposing of the shares will be liable to CGT on their portion of the losses, i.e. 50%.
This sounded odd to me as there does not appear to be any "Gain" here. So I checked with another tax advisor who says this is not the case. Just wondered if anyone on here had any thoughts to add, suppose best bet is to contact Revenue for clarification. Thanks.