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Clarification of circumstances where CGT clearance certificate not required

Arising from a number of requests for clarification from tax practitioners and legal offices, the purpose of this eBrief is to set out particular circumstances in which the provisions of section 980 Taxes Consolidation Act 1997 (TCA) will not be applicable to disposals/sales of assets that are referred to in subsection (2) of that section.

Disposals of assets by bodies which carry an exemption from capital gains tax (CGT)

The section will not apply to a disposal of an asset by a person where any gain accruing on the disposal would not be a chargeable gain. Examples of such disposals in the TCA are: A disposal by a pension fund or arrangement carrying an exemption from CGT under section 608(2) or (2A).A disposal by an investment undertaking within section 739C.A disposal by a charity to which section 609(1) would be applicable.A disposal by the National Asset Management Agency (NAMA) or by any other body specified in Schedule 15.Sales by financial institutions of loans secured on land in the State

The section will not apply to the sale by a financial institution of loans secured on land in the State where the sale arises in the ordinary course of the carrying out of its trading activities. In other words, the section will not apply to the sale of such a loan by a financial institution in circumstances where any profit on the sale would be treated as a trading receipt of its trade.

However, in regard to loans secured on land in the State, Revenue wishes to make clear its view that: In general, such loans are interests in land for the purposes of section 980, andIn general, such loans are securities for the purposes of that section.It follows, therefore, that the provisions of section 980 will have application where the sale of such a loan would be a disposal for CGT purposes.

For full details see Tax and Duty Manual Part 42-03-01 (PDF, 108KB).

http://www.revenue.ie/en/practitioner/ebrief/2015/no-1052015.html


Source: accountingnet.ie



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