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