Distribution from Liquidation of Company in Form 11

smpillai11

Where do I declare Distribution from Liquidation of Company in Form 11?
I called up revenue and they said its other income. The guy on the phone seemed a bit unsure

nompere

smpillai11 wrote: »

Where do I declare Distribution from Liquidation of Company in Form 11?
I called up revenue and they said its other income. The guy on the phone seemed a bit unsure

I'm not surprised he seemed unsure - he's wrong.

If it's liable to tax it will be capital gains tax, not income tax.

So you need to look at the cost of the shares you bought and the liquidation distribution (and any forecasted further distribution) and work out the gain or loss.

You might need professional help if you haven't found this outline explanation simplle to follow.

smpillai11

Thanks for your reply, your explanation is simple to understand. It was an IT company and the cost of shares was only nominal.
So 99% of the distribution would be a profit
I assume it would it still fall under Capital Gains tax?

exaisle

In the absence of other capital gains, the taxable gain would be the amount you received less the cost, less the personal allowance of €1270.

nompere

exaisle wrote: »

In the absence of other capital gains, the taxable gain would be the amount you received less the cost, less the personal allowance of €1270.

That's often the case, but I'm old enough to remember the Rolls Royce liquidation. The company went into liquidation in 1971 and the process was finished in 1982 after (I think) 7 or 8 separate payments. Each payment was a part disposal for CGT purposes.

henryd65

If there is a CGT liability, you might want to check if entrepreneur's CGT relief is relevant.

smpillai11

Thanks everyone for your help with this. Where does the CGT go in form 11. I can see the two fields

a) Enter amount of net gain to be charged at 33%

b) Enter amount of net gain to be charged at 40% (excluding Foreign Life Policies)

I tried entering the amount in (a), When I go to print view I can see CGT Self Assessment and Balance of Tax Payable for this period (which seems correct)
However the total Liability shows up as Zero

dogsears

smpillai11 wrote: »

Thanks everyone for your help with this. Where does the CGT go in form 11. I can see the two fields

a) Enter amount of net gain to be charged at 33%

b) Enter amount of net gain to be charged at 40% (excluding Foreign Life Policies)

I tried entering the amount in (a), When I go to print view I can see CGT Self Assessment and Balance of Tax Payable for this period (which seems correct)
However the total Liability shows up as Zero

Should be 33%. Not sure why the net payable is showing as Nil - is the gain below E 1270?

smpillai11

Gain is nearly 5K. I went to the payments section and selected capital gains and paid the due amount. Not sure if this is the correct way to do it but at least I have paid whats due

The form 11 is not too intuitive, hope the revenue make this more user friendly.