Tax on 'Return of Capital to Shareholders'

W

weston68

Registered User
Messages
56
I'm trying to fill out a Form12 for 2006. During that tax year I received a sterling cheque with a reference 'Return of Capital to Shareholders'. Not only do I not know what this is but what do I do with this amount on the form? Is the amount subject to ordinary PAYE tax or is it Capital Gains Tax?
 
Ok - well you're waaaay late with your Form.

But from which company did you receive it - the Revenue would probably have issued Guidance at the time (it could be a mixure of both income and capital).
 
A late form is the least of my problems! It was from Vodafone (remember the good old Eircom shares we all bought that eventually became Vodafone).
 
Casting my poor mind back, I seem to remember a CGT loss on mine and had to call for expert help to make sense of all the bumph for me. I signed the Form 12. I'm looking for it and the P21 now - hold the phone a minute.
 
Sorry, I was wrong. I seem to have recorded CGT losses in 2001 & 2003, but not for 2006 that I can see. I just happened to have the tax files out for a different reason.
 
"Return of Capital" does sound as though CGT would be the relevant tax. Everyone I know made losses; you're unlikely to have a gain. If the cheque is below the €1270 annual CGT threshold, don't bother tring to find a space on the form.
As for being late, I hope you're trying to claim back overpaid tax, and you are not too late for that.
 
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