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Ask Ronan Your Own Question
Ronan, Solicitor
Category: Republic of Ireland Law
Satisfied Customers: 2255
Experience:  B. Corp Law, Ll.B. Dip Comm Prop. In general practice for more then 6 years
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I have been shortlisted as a potential winner at a

Customer Question

Hello. I have been shortlisted as a potential winner at a international Supercar competition. If I win, I will have won a supercar worth 200 thousand euros. The game is not classified as gambling, rather as a skill based game since you have to guess the centre of a ball deleted from a still picture taken at a football game. People play by marking where they think the centre of the ball is, then a team of professional referees decides where the ball is and the person who matches the coordinates or is the closest to it wins. I live in Ireland and intend to sell the car in the UK or Ireland. If I do, will I have to pay tax in Ireland for the money I take from the sale? If this is so, what percentage would I have to pay?
Submitted: 1 year ago.
Category: Republic of Ireland Law
Expert:  Ronan replied 1 year ago.

In the case of an individual who is resident or ordinarily resident but not domiciled in the State, gains realised on disposals of assets situated outside the State are liable to tax only to the extent that they are remitted to this country. Such gains are not chargeable to tax until so remitted. So if you sell the car in the UK and remit the money back here it will be liable to Capital Gains Tax at a rate of 33%.

Customer: replied 1 year ago.
OK, thanks. And what if I sell the car in Ireland or in another EU state? Would I have to pay tax in Ireland or elsewhere in the EU? If so, how much?
Expert:  Ronan replied 1 year ago.

Yes, if you sell it in Ireland you will pay tax on the gain at 33% if you sell it elsewhere in Europe you will be liable for tax on the portion you remit to Ireland at 33%. As to other EU country, you ll need to be more specific as each one has different tax laws

Customer: replied 1 year ago.
OK, so wherever I might sell it, as long as I bring the money back to Ireland, where I am resident, I will have to pay 33% tax on it? Is that correct? Now, turning the question on its head, is there a legally acceptable way that I can get around it and avoid paying tax on it?
Expert:  Ronan replied 1 year ago.

That's correct. You are entitled to an exemption of €1,270.00 on the initial gain. Beyond that the only possible relief is the entrepreneur's relief

Section 52 of the Finance Act 2014 provides relief from a future Capital Gains Tax liability for entrepreneurs who, on or after 1 January 2014 and on or before 31 December 2018, invest the proceeds of an earlier disposal in respect of which Capital Gains Tax was paid in new business ventures, which are subsequently sold. The relief is in the form of a tax credit against any Capital Gains Tax liability on the future disposal of chargeable business assets of the qualifying enterprise made more than 3 years after they were acquired. The tax credit will be the lower of: (a) the CGT paid on the earlier disposal where all the consideration on the disposal, apart from any CGT paid, is invested in chargeable business assets (or a proportionate amount where less than the full amount is reinvested), and (b) 50 per cent of the CGT payable on the disposal of chargeable business assets. Chargeable business assets are assets used wholly for the purposes of a new business carried on by an individual or new ordinary shares issued on or after 1 January 2014 in a qualifying company over which the shareholder has control and in which the shareholder is a full-time working director. There is a minimum investment requirement of €10,000. In the case of investment through a company, each shareholder must own not less than 15% of the shares in the qualifying company carrying on the new business (or in a holding company which owns 100% of the ordinary share capital of a qualifying company carrying on a new business) and must be a full-time working director in the qualifying company. Assets held as passive investments do not qualify for the relief. If the proceeds of a disposal of chargeable business assets are in turn reinvested in another new business, CGT relief can be claimed on the same basis as outlined above.

Customer: replied 1 year ago.
in simple terms, I could invest the 33% tax money on a business as described above?
Expert:  Ronan replied 1 year ago.

No you ll have to invest the full amount of the gain