CGT - did I pay twice?

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cookiemon136

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In 2003 a sport & social club whichg I was an owner/member was sold for €18.1 million (approx.) and a tax liability of €4.4 millin (approx) was paid on this. I received €20,000 for my sale in the sale of this club, of which I paid €3,600 in capital gains tax to the Revenue Commissioners. I have since been advised that I did not have a liability to pay capital gains tax on the €20,000 I received as this was covered by the initial tax on the sale of the club. Would you know if this is the case or was I liable to pay the CGT on the €20,000 I received??????
 
Re: CGT - did I pay twice?????

I would have thought that your fee would have been subject to Income tax, not CGT. Can you clarify what you mean by 'owner/member'..?
 
Was your part ownership in this property in your own name or through a company structure
 
It was in a company name and I was one of the shareholders. Unfortunately I did not seek professional advice before paying the €3,600. I was informed that the €20,000 I received was compensation for surrendering my right to membership of the club and therefore is assessable as a Capital Gain.
 
cookiemon136 said:
It was in a company name and I was one of the shareholders. .
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In that case it is most likely that you are assessable to CGT on the sale of your share.
 
What often happens in these situations is that the solicitor and/or accountant that were invloved in the sale would have worked out the CGT due by each member. They would then have withheld this amount from ech members distribution and paid it directly to Revenue.

So your 20K may be net of 20% CGT.

The solicitor involved has more than likely sent the €4.4m off to Revenue but it may not necessarily be linked to your own tax number. I've come across a few of these cases.

You need to go back to the solicitor and get more details as to where the tax has been paid.
 
If the property was sold be the company then the company then pays CGT on the gain. The money that is remaining is belonging to the company and not to you.
If the company then divides this money between the shareholders then each has to pay tax on that.
The company is viewed as a third party for tax purposes.
 
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