Transfer of shares in Offshore company

In the late 1980s my father bought a house in Portugal. The house is held as an asset in a Gibraltar company. In an attempt to be clever he put all the shares of the company in his 3 children's name. We now all want to transfer the shares into his name only. The asset was worth about €100k when bought and is now worth about €400k. Can anyone clarify what the tax implications of this will be for us, his children? We are tax resident/domiciled in Ireland.

This is such a complicated issue that I really don't think anyone on askboutmoney would be able to answer it.

You will need to consult a tax advisor who is familiar with Portuguese, Irish and Gibraltar's tax.

Brendan Burgess said:

This is such a complicated issue that I really don't think anyone on askboutmoney would be able to answer it.

You will need to consult a tax advisor who is familiar with Portuguese, Irish and Gibraltar's tax.

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It's not that complicated an issue from an Irish CGT perspective - if all the individuals concerned are Irish resident & domiciled, they are liable to CGT on worldwide gains. The disposal to father would result in a deemed mkt value disposal, and any gain taxable here, subject to any applicable double taxation relief.

I'd agree with Brendan - this could be more complicated than it appears.

The first thought that occurs to me is whether the shares are held in trust, as nominee, by the children for the father. If this was the case then it may be as simple as cancelling the nominee or trust arrangement and transferring the shares to the father without any change in beneficial ownership.

As Gibraltar is a common law jurisdiction could you construct an argument of a resulting trust? Just a question I don't have the answer.

Good luck.