gnf_ireland
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I am asking this on behalf of a friend who went into an investment with someone else.
The investment was for 100k in a limited company used to buy property in the UK in 2007. Both parties put in 20k each and took out an 'deferred interest' loan of 60k in the 3rd parties sole name. They signed a piece of paper saying they were both equal partners in the investment, but don't have any emails showing dates etc. It should be noted the payment made included other money as well.
About 5 years ago, the loan matured and they started paying interest only on it. There would be a record of regular payments from my friend into the 3rd party account. 2 years ago it went to full repayments, and again shows regular payments between the two. However, everything is still in the 3rd parties name (shares, loans etc).
The company has now been liquidated, with a distribution of 20k. There is an 80k capital loss - but in the 3rd parties sole name. The 3rd party wishes to transfer 40k of the loss to my friend, as joint shareholder.
Will the Revenue allow this, or how would it be viewed by them? Is the loss purely the 3rd Parties to offset since everything is in their name?
They are working on a final settlement to close out the deal - so the capital loss is central to it. Any advice would be welcome here
The investment was for 100k in a limited company used to buy property in the UK in 2007. Both parties put in 20k each and took out an 'deferred interest' loan of 60k in the 3rd parties sole name. They signed a piece of paper saying they were both equal partners in the investment, but don't have any emails showing dates etc. It should be noted the payment made included other money as well.
About 5 years ago, the loan matured and they started paying interest only on it. There would be a record of regular payments from my friend into the 3rd party account. 2 years ago it went to full repayments, and again shows regular payments between the two. However, everything is still in the 3rd parties name (shares, loans etc).
The company has now been liquidated, with a distribution of 20k. There is an 80k capital loss - but in the 3rd parties sole name. The 3rd party wishes to transfer 40k of the loss to my friend, as joint shareholder.
Will the Revenue allow this, or how would it be viewed by them? Is the loss purely the 3rd Parties to offset since everything is in their name?
They are working on a final settlement to close out the deal - so the capital loss is central to it. Any advice would be welcome here