Income from Cash Deposits

Hi,

I have a friend that is confused about cash deposits that are delivering a small amount of annual interest. The cash is the proceeds of a house sale several years ago - her primary residence.

DIRT is deducted at source so is she liable to any other taxes on the residue....is it income or would this be capital gains ? can you get taxed twice on the same event ?


She has no other income sources and has been a mature student for 4 years. The Revenue are writing to her to make a return.....any help gratefully received.

DIRT is the only tax that she is liable for on deposit accounts and as you say it is taken at source. She would only have to declare it if she held it abroad. (Assume all tax affairs to do with sale of house are in order)

that depends was the house she sold gifted to her or inhertance ? if so and she dident inform revenue she could be due to pay cat but if the house by was bought by her then shes ok she wont have anymore tax on it

mcriot29 said:

that depends was the house she sold gifted to her or inhertance ? if so and she dident inform revenue she could be due to pay cat but if the house by was bought by her then shes ok she wont have anymore tax on it

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The house was her marital home and the cash was her share of the Divorce settlement whenit was sold. As far as I can see there would be no CAT liability at that time. The cash has stayed in the bank until she recently split it across several banks to meet the deposit protection limits of the Government guarantee. I assume some of the mandatory reporting by banks to revenue has triggered the request.

If she can show the original source of the funds I would think she would have no CAT liability....