Tax

Helen Byrne, Senior Tax Manager at EY Ireland, outlines the relevant compliance dates for October and November. RELEVANT COMPANY DATES 14 October 2018 Dividend withholding tax return filing and payment date (for distributions made in September 2018). 21 October 2018 Due date for payment of preliminary tax for companies with a financial year ended 30 November 2018. If this is paid using ROS, this date is extended to 23 October 2018. Due date for payment of initial instalments of preliminary tax for companies (not “small” companies) with a financial year ended 30 April 2019. If this is paid using ROS, this date is extended to 23 October 2018. 23 October 2018 Last date for filing corporation tax return Form CT1 for companies with a financial year ending on 31 January 2018 if filed using ROS. Due date for any balancing payment in respect of the same accounting period. Loans advanced to participators in a close company in the year ended 31 January 2018 may need to be repaid by 23 October 2018 to avoid the assessment (on the company) of income tax thereon. A concessional three-month filing extension for iXBRL financial statements (not Form CT1) may apply. For 31 October 2017 year ends, this should extend the iXBRL deadline to 23 October 2018. 31 October 2018 Last date for filing third-party payments return Form 46G for companies with a financial year ending on 31 January 2018. Latest date for payment of dividends for the period ended 30 April 2017 to avoid Sections 440 and 441 TCA97 surcharges on investment, rental and professional services income arising in that period (close companies only). Country-by-Country Reporting Notifications relating to the fiscal year ended 31 October 2018 must be made to Revenue no later than 31 October 2018 via ROS (where necessary). 14 November 2018 Dividend withholding tax return filing and payment date (for distributions made in October 2018). 21 November 2018 Due date for payment of preliminary tax for companies with a financial year ended 31 December 2018. If this is paid using ROS, this date is extended to 23 November 2018. Due date for payment of initial instalments of preliminary tax for companies (not “small” companies) with a financial year ended 31 May 2019. If this is paid using ROS, this date is extended to 23 November 2018. 23 November 2018 Last date for filing corporation tax return Form CT1 for companies with a financial year ending on 28 February 2018 if filed using ROS. Due date for any balancing payment in respect of the same accounting period. Loans advanced to participators in a close company in the year ended 28 February 2018 may need to be repaid by 23 November 2018 to avoid the assessment (on the company) of income tax thereon. A concessional three-month filing extension for iXBRL financial statements (not Form CT1) may apply. For 30 November 2017 year ends, this should extend the iXBRL deadline to 23 November 2018. 30 November 2018 Last date for filing third-party payments return Form 46G for companies with a financial year ending on 28 February 2018. Latest date for the payment of dividends for the period ended 31 May 2017 to avoid Sections 440 and 441 TCA97 surcharges on investment, rental and professional services income arising in that period (close companies only). Country-by-Country Reporting Notifications relating to the fiscal year ended 30 November 2018 must be made to Revenue no later than 30 November 2018 via ROS (where necessary). PERSONAL TAXES 31 October 2018 Due date for payment of preliminary income tax (inclusive of the USC) for the tax year 2018 (assuming the ROS ‘pay and file’ 14 November 2018 extension is not availed of). Due date by which self-assessed income tax and capital gains tax returns must be made for the year of assessment 2017 (see 14 November 2018 ROS ‘pay and file’ deadline extension). Due date for payment of any balance of income tax for the tax year 2017, assuming adequate preliminary tax was paid for 2017. Due date for payment and return of €200,000 Domicile Levy for 2017. Latest date for making contributions to a PRSA, an AVC or an RAC for the tax year 2017 (subject to an extension to 14 November 2018 for ROS pay and filers). 14 November 2018 An extension of the income tax ‘pay and file’ date of 31 October 2018 to 14 November 2018 may be availed of if taxpayers submit their payment and file their tax return through ROS. Extended due date for payment of capital acquisitions tax and filing of returns in respect of gifts and inheritances taken in the 12-month period ended 31 August 2018 (if done through ROS, otherwise 31 October 2018).  GENERAL 5 October 2018 Under mandatory reporting rules, promoters of certain transactions may be required to submit quarterly ‘client lists’ in respect of disclosed transactions made available in the relevant quarter. Any quarterly returns for the period to 30 September are due on 5 October. 1 November 2018 Date on which residential property must be held in order to be liable for 2019 Local Property Tax. Note: this article does not take account of any amendments proposed in Budget 2019 or Finance Bill 2018, both of which are expected to be published in December 2018.

David Duffy highlights the latest VAT cases and discusses recent VAT developments. IRISH VAT UPDATES Transfer of business Revenue eBrief No. 150/18 provides a link to the updated VAT Tax and Duty Manual (TDM) in respect of VAT transfer of business (TOB) relief. This updates the previous guidance dated December 2017. The new guidance applies to asset transfers from 31 July 2018 onwards. However, where there was a binding contract in place before 31 July 2018 in respect of a transaction, previous guidance will apply to that transaction. The guidance includes examples of transactions that, in Revenue’s view, qualify for TOB relief. This includes detailed comments on the circumstances in which a sale of property can qualify for TOB relief. The guidance states that the sale of a property that is subject to an existing letting agreement, an agreement to lease or a licence to occupy qualifies for TOB relief provided the buyer is an accountable person. However, the sale of vacant property or the sale of a let property to the tenant would generally not qualify for TOB relief, unless those sales are accompanied by other assets which, together with the property, constitute a business.  The guidance also sets out the VAT deductibility position on costs in relation to a transfer of business and comments on the application of the relief in scenarios where multiple assets and businesses are transferring. Compulsory purchase orders Revenue has updated the VAT on Property Guide (available through the Revenue website) to include comments on the VAT treatment of compulsory purchase orders of land. The guidance states that, where a supply of property takes place on foot of a compulsory purchase order, Revenue will not, in general, consider the supply to be subject to VAT solely by virtue of development work carried out by the acquiring body under its statutory powers, after the notice to treat has issued. EU VAT UPDATES VAT treatment of payment processing service The Court of Justice of the European Union (CJEU) judgment in DPAS Limited (C-5/17) concerns the VAT treatment of certain payment-related services. This is the latest in a number of CJEU cases which have considered the scope of the VAT exemption for transactions concerning payments. This is a complex area and each scenario should be considered on a case-by-case basis. This judgment held that DPAS’s service to dental patients of facilitating their direct debit payments to their dentist did not constitute a VAT-exempt financial transaction. Therefore, VAT was applicable on this service. The CJEU had previously determined in AXA UK (C 175/09) that similar services provided to dentists should be regarded as debt collection, an activity that is subject to VAT. However, DPAS sought to argue that its services were different to those in AXA UK as DPAS contractually provided its services to the patients who made the payments rather than the dentists who received the payments. However, the CJEU considered that DPAS’s arrangement did not meet the conditions for VAT exemption. In reaching its judgment, the CJEU considered it significant that DPAS was not responsible for the failure or cancellation of a payment as a result of the direct debit, as this was ultimately the responsibility of the relevant party’s banks. Change of use In the case of Gmina Ryjewo (C-140/17), a Polish local authority constructed a property that was initially used for activities which were outside the scope of VAT. On that basis, the local authority did not recover VAT on the construction of the building. Four years later (i.e. still within the period for the adjustment of input tax in Poland), the authority began to use part of the building for VATable activities and sought to reclaim a portion of input VAT previously disallowed. The Polish tax authorities denied this VAT recovery on the ground that the authority had constructed the property for an ‘outside the scope of VAT’ activity. However, the CJEU found in the local authority’s favour. In Ireland, we have provisions known as the Capital Goods Scheme, which can result in additional VAT recovery or VAT clawbacks on property-related costs where the level of VATable activity in a property changes over a period of time, typically 20 years. Brexit The UK Government issued a number of papers on 23 August 2018 on the potential impact of a no-deal Brexit scenario, two of which deal with the potential VAT implications for UK businesses. While the Brexit landscape continues to evolve and at this point is far from certain, the papers set out the likely VAT implications if there is no deal between the EU and the UK. The first paper entitled Trading with the EU If There’s No Brexit Deal states that UK businesses would in those circumstances have to apply the same customs and excise rules to goods moving between the UK and the remaining EU countries as currently apply in cases where goods move between the UK and a non-EU country. Customs declarations would be required when goods enter or leave the UK. The paper assumes that the remaining EU countries would also apply customs and excise rules and requirements to trade with the UK, as is currently the case with other non-EU countries. The second paper entitled VAT for Businesses If There’s No Brexit Deal states that the UK’s VAT regime would mirror the current VAT system as closely as possible. However, some specific changes would be required to deal with the fact that the UK would not be part of the EU. For example, the movement of goods in and out of the UK from the EU would be regarded as imports and exports. To help reduce the potential cash flow implications, the UK Government may introduce a postponed accounting system for UK businesses for import VAT. This would allow UK businesses to account for import VAT when filing their VAT returns rather than at the time of import. The papers focus on the position from a UK perspective. However, similar VAT implications could arise for Irish businesses trading with the UK in the event of a no-deal Brexit.   David Duffy ACA, AITI Chartered Tax Advisor, is a VAT Director at KPMG.

With the impending changes to property tax, it’s important to communicate some key changes to your clients. BY ANGELA KEERY Following a period of consultation, from April 2020 there will be changes to the payment of capital gains tax (CGT) on residential property by all individuals who are filing UK tax returns under self-assessment. This change will apply to both residents and non-residents. Currently, non-residents must file a return within 30 days of disposal but have the option to pay the tax on 31 January with their self-assessment tax payment, which is when UK residents are required to file their returns and pay the CGT due. From April 2020, both UK resident and non-residents will have to make a payment on account within 30 days of the completion of the disposal of UK residential property. A payment on account will also need to be calculated when a UK resident disposes of an overseas residential property unless the gain is covered by double tax relief or the remittance basis applies. T hese are significant changes for UK residents disposing of UK property and one that we need to make clients and their solicitors aware of.  Non-residents  From 6 April 2015, non-residents have been subject to capital gains tax on the disposal of UK residential property and many off-shore investors have been caught out by the strict 30-day time frame post-disposal date in which they must submit the non-resident capital gains tax (NRCGT) return, even if no gain has been made, and pay any tax that is due. At present, there is no capital gains tax charge on the disposal of commercial property by non-residents (unless the property was held on a trading account). However, draft legislation has been published to implement an extension to the charge to tax on gains. The new regime, due to come into effect in April 2019, will catch all disposals of UK investment property by non-residents. The key changes are: Most non-residents will be chargeable to UK tax on gains accruing on the disposal of UK commercial property; The existing capital gains tax charge for non-residents disposing of UK residential property will be extended to indirect disposals of properties; Annual Tax on Enveloped Dwellings (ATED) related capital gains tax, which has applied to some residential properties owned by companies since 2013, will be abolished from April 2019; and There will be a rebasing for tax purposes to April 2019 values for both commercial property and shares in “property rich” companies (see indirect disposal of properties below). Indirect disposals of properties Disposals of UK investment properties often involve a sale of the company owning the property rather than a sale of the property itself and in most cases gains are not currently taxable for non-resident investors. However, under the draft legislation, gains on share disposals of “property rich” companies will be charged UK tax where both of the following conditions are met: a)  75% or more of the gross asset value at the date of disposal is represented by UK property; and b)  The individual holds (or has held within two years prior to disposal) an interest of 25% or more in the company. Shares in such companies will be re-based to their market value in April 2019. There will be an exemption available for companies holding property for trading purposes, such as hoteliers and care home operators. In addition, some exemptions are expected to be available to widely-held entities which would not be chargeable to corporation tax if they are UK resident – pension funds, for example. The mechanism for this is subject to further consultation but one of the proposals is to introduce tax advantaged status to the offshore funds in exchange for complying with HMRC reporting obligations.  Calculating and reporting  For non-residential property brought into charge, only gains attributable to the change in value from April 2019 will be chargeable. Gains arising to individuals will be chargeable to capital gains tax and gains arising to companies will be chargeable to corporation tax. The present reporting deadlines for residential gains will be mirrored; disposals will need to be reported to HMRC on a non-resident capital gains tax return within 30 days of completion. Tax payment For corporations, a payment on account will be required with the filing of the NRCGT return by companies from 6 April 2019. Individuals, however, will have to file a return within 30 days of disposal but have the option to pay the tax on 31 January with their self-assessment tax payment. However, from April 2020, when they dispose of residential property they will have to make a payment on account within 30 days of the completion of the disposal. How can you prepare? You should advise all clients (resident and non-resident) of the forthcoming changes and request that they give you advance notice of impending disposals. The 30-day reporting deadline for residential disposals is often missed and there have been a number of appeals lodged against penalties. If you have overseas clients with UK property, it may be prudent to organise valuations for April 2019 to be one step ahead when it comes to capital gains tax reporting. Angela Keery is a Tax Director at BDO Northern Ireland.

With the publication of the Corporation Tax Roadmap, Ireland has a clear route towards BEPS implementation. BY PETER VALE Last month saw the publication of Ireland’s Corporation Tax Roadmap document by Minister Donohoe. This document outlines how Ireland intends to implement mandatory EU tax directives and other non-binding recommendations under the OECD’s BEPS tax anti-avoidance project. International tax Corporation tax receipts have doubled since 2013 and now make up 16% of our total tax take. So far this year, it is the more than €400 million increase in corporate receipts over the prior year that is cushioning deficits elsewhere. The point is: robust corporation tax receipts are critical to the Exchequer’s health. Much of the focus of the Roadmap document is on international tax issues. This is relevant for Ireland as 80% of our corporate receipts are made by foreign multi-national corporations and 39% of that is made by the top 10 companies. So what imminent changes are addressed in the Roadmap document? A tightening of our existing laws on the deductibility of interest is an important aspect. At the moment, Ireland has relatively light rules in terms of disallowing ‘excessive’ interest payments. Under the EU’s Anti Tax Avoidance Directive (ATAD), interest deductions will be capped at 30% of EBITA. Originally, it appeared Ireland would have until 2024 before this restriction would be introduced, but an earlier implementation date now looks likely. The restriction on interest deductibility is not just in respect of intra-group interest charges, it also applies to third-party interest. For groups with significant financing costs, this restriction will increase after-tax costs and is already being factored into financing models, with an implementation date of somewhere between 2020 and 2022 seen as prudent. It is planned to hold a public consultation shortly on the proposed new interest rules, in tandem with certain other ATAD changes. Exit tax Ireland currently has rules that provide for an ‘exit tax’, where an Irish tax-resident company moves its tax residence away from Ireland. Broadly, that exit event triggers a deemed disposal of assets at market value for Capital Gains Tax (CGT) purposes, resulting in a potential 33% CGT charge. There are a number of exemptions to the exit tax rules and, in practice, it is currently not a significant issue for most Irish tax-resident companies. Under the EU’s ATAD rules, the existing rules will be tightened significantly, making it much more difficult to escape an Irish tax charge on migration of tax residence. You could assess this as making it more difficult to move valuable assets, such as intellectual property, out of Ireland, but will possibly encourage existing groups to stay, which could be seen as a positive move, but in reality, anything that reduces flexibility for either existing groups or potential new investors is not a good thing. However, all EU countries will be obliged to introduce similar rules by 1 January 2020 at the latest. It is also worth noting that the current CGT rate of 33% applies to exit tax charges. One suggestion, which seems reasonable, is that a 12.5% rate is more appropriate.  We can expect to see legislation on the exit tax changes next year, although there is no formal public consultation phase planned. A final point to note is that the grandfathering of the old “Double Irish” rules ends on 31 December 2020, at which point many groups will have made a decision to “onshore” their intellectual property from an existing low/nil tax jurisdiction. A change in the exit tax rules could potentially influence this decision. Controlled Foreign Company regime The Roadmap document also covers the most imminent change to our corporation tax rules: the introduction of a Controlled Foreign Company (CFC) regime to Ireland. Many countries already have a CFC regime under ATAD. We are obliged to introduce similar rules by 1 January 2019, with the legislation to be presented in the 2018 Finance Bill later this month. Broadly, under CFC rules, low-tax subsidiaries are taxed in the parent company’s jurisdiction where there are ‘non-genuine’ arrangements in place for the purposes of obtaining a tax advantage. Where the tax rate in the subsidiary is less than half of the tax rate in the parent company, then the CFC rules can take effect. The CFC rules can impact on Irish groups with low-tax operations overseas but also on Irish companies with a foreign parent which itself might be impacted by the new CFC rules by virtue of Ireland’s relatively low rate. Transfer pricing There have been major transfer pricing (TP) developments in recent years, with a broad move towards aligning taxable profits with real substance. Ireland has yet to adopt the latest OECD TP guidelines, something that is expected to happen in the near future. This will be a significant development for many groups, with a welcome consultation phase in early 2019. Legislation is expected to be introduced later that year, effective 1 January 2020. How Ireland and other countries implement TP rules could have a significant impact on future corporation tax receipts, with the taxation of valuable IP one of the most sensitive areas of the OECD’s BEPS project. Probably the most welcome feature of the Roadmap is the willingness of the Minster to engage via public consultation on issues that are critical to the future sustainability of our corporate tax receipts. As ever, many things remain outside of our control, but we’re at a critical juncture given the requirement to introduce further anti-avoidance provisions while simultaneously maintaining the attractiveness and sustainability of our regime. Peter Vale FCA is a Tax Partner at Grant Thornton.

With Budget 2019 just weeks away and limited fiscal space for manoeuvre, what are the key themes under consideration? With two months to go, what can we expect to see in Budget 2019 and what is being sought in the pre-Budget submissions made to date? At this stage, it is safe to predict that low and middle income earners will do relatively better from Budget 2019 than higher income earners. Any cut to the top marginal tax rates of 52% and 55% for the employed and self-employed respectively would be a big surprise. Likely measures in Budget 2019 include a widening of the tax bands, pushing more income outside the 40% top income tax rate, and an increase in tax credits. Both measures are of relatively more benefit to lower and middle income earners. Small reductions in the USC rates and tweaks to the bands can also be expected, again of relatively more benefit to lower and middle income earners. The above changes will likely make up the bulk of the tax breaks we can expect in October. The cost of last year’s equivalent changes amounted to €400 million and didn’t leave much room for further tax cuts. Pre-Budget submissions Pre-Budget submissions made to date have focused on a few key areas, with entrepreneurship a recurring theme that features in both the CCABI and ITI submissions. Despite previous Government commitments to bring our tax regime for entrepreneurs more in line with the UK equivalent, the €1 million cap on gains liable to the reduced 10% capital gains tax (CGT) rate remains. Other anomalies in the legislation have also been central to submissions to the Minister. While it is difficult to fathom why more hasn’t been done for Irish entrepreneurs, particularly given our exposure to any dip in foreign direct investment, I wouldn’t hold out for any significant improvements in the regime this year. We may therefore be left with the €1 million cap for another year, although I hope that this won’t be the case. On a similar theme, a more attractive tax regime for share options (the KEEP scheme) was introduced last year, broadly providing CGT treatment rather than income tax on share option gains. While welcome, there are a number of practical difficulties under the existing legislation which make it difficult to access in many cases. Improving the accessibility of the KEEP scheme, in line with promoting entrepreneurship, has been identified in pre-Budget submissions made. Private pension provision Over the past number of years, successive Finance Bills have reduced the attractiveness of making pension contributions, with recent media reports raising the spectre of even more significant adverse changes. This seems to run against concerns as to how well-provided we are for the post-retirement years. At a minimum, tax relief at marginal income tax rates for pension contributions should be maintained. Many pension pots still bear the scars of the recession. Property supply Other matters identified in pre-Budget submissions, and likely to feature in future submissions, include considering the position of landlords in an effort to improve supply and pricing in the rental sector and an increase in the capital acquisitions tax (CAT) thresholds, which remain significantly behind 2008/09 levels. In respect of landlords, the restriction on the deductibility of interest costs has been removed, albeit on a phased basis over five years. It is difficult to understand why a full deduction for interest incurred isn’t reinstated immediately – at present, an unprofitable letting can still result in a tax charge. Tax issues On the corporate tax front, there will be significant changes announced on Budget day with most of the detail in the subsequent Finance Bill/Act. From 1 January 2019, Ireland will be obliged to introduce Controlled Foreign Company (CFC) legislation, broadly aimed at ensuring that the profits of low-taxed subsidiaries can be subject to tax in the Irish parent company if there is insufficient substance in the foreign subsidiary. The legislation implementing CFC rules will be included in the Finance Bill and has been the subject of much discussion in recent months. While our legislation must fit within the parameters of the relevant EU Directive, it is critical that it protects both Irish and foreign parented groups to the greatest extent possible. In tandem with the CFC changes, we can also expect a change to the taxation of foreign dividends and branches. While foreign dividends generally suffer no additional Irish tax due to the availability of foreign tax credits, the rules are complex and in some cases unclear. Going forward, we may have a much more straightforward regime that broadly exempts foreign dividends completely, thus providing more simplicity and certainty – although, we may have to wait until next year’s Finance Bill. Last year, we saw a change to the intangible asset regime, re-introducing the 80% cap on allowances. I suspect we won’t see any further significant change this year, although pre-Budget submissions have included the research and development (R&D) tax credit and enabling loss-making companies to claim the full tax credit in year one as opposed to over a three-year period. In summary, for most taxpayers, Budget 2019 might look similar to Budget 2018. A key focus of pre-Budget submissions has been on entrepreneurship and ensuring that the right tax incentives are in place to encourage innovation in Ireland. Peter Vale FCA is Tax Partner at Grant Thornton.

Executors must consider a range of issues if they are to fully discharge their relevant tax obligations. An executor has many responsibilities, one of which is to deal with the tax affairs of the deceased. In addition to quantifying any inheritance tax liability and ensuring that all income tax and capital gains tax liabilities up to the date of death are settled, executors are also responsible for taxation during the period of administration, which lasts from the day after death until the estate is settled. Income tax During the administration period, executors are subject to income tax at a rate of 7.5% on dividend income and 20% on any other income. Unlike individuals, executors do not benefit from the personal allowance, personal savings allowance or the dividend allowance. Furthermore, there is no liability to higher rate tax. Prior to 6 April 2016, executors were liable for income tax on dividend income at a rate of 10% and this was covered by the dividend notional tax credit. The abolition of the dividend tax credit, coupled with banks’ decision to cease the deduction of tax at source on interest income, has resulted in increased tax reporting requirements and additional income tax liabilities for executors in the administration period post-6 April 2016. While the income arising in the period of administration is taxed on executors in the first instance, the residuary beneficiaries are ultimately personally liable for income tax on their share of the estate’s income. For simple estates that are administered within one year, executors should provide the beneficiary with details of the estate income taxable on them via Form R185 Estate Income. In calculating the taxable amounts, general estate management expenses (for example, the costs associated with the preparation of tax returns) can be deducted. The beneficiary will use the R185 figures to complete his or her own tax return, as appropriate. The beneficiary then receives credit for the tax already paid by the executor. If they are basic rate taxpayers, there will be no further income tax to pay. If they are higher rate taxpayers, on the other hand, they will be subject to an additional inheritance tax (IT) liability. Alternatively, they may be due a tax refund if they are not a taxpayer. Where dividends were received by the executor prior to 6 April 2016 but only taxed on the beneficiaries after 6 April 2016, such income must be separately identified to ensure that the tax credit is not treated as repayable to the beneficiary. For more lengthy administrations, which may extend over a number of tax years, a record of the estate income arising and tax paid by the executor in each year must be maintained. The income will be taxed on the beneficiary when sums are paid to them (this includes a transfer of assets). If no distributions are made until the end of the administration period, the beneficiary’s share of the total estate income will be taxed in the final tax year of administration. Executors should therefore consider, and discuss with beneficiaries, whether it is appropriate to make interim payments as the administration progresses to avoid, for example, needlessly pushing the beneficiary into a higher tax band or increasing income to a point that triggers a child benefit clawback. Capital Gains Tax Death represents a capital gains tax-free uplift to probate value for executors, who are treated as acquiring the assets at the date of death. During the administration period, executors pay capital gains tax at a rate of 20% or 28% on UK residential property. For the tax year of death and the two subsequent tax years only, the executors have a full capital gains tax annual exemption, which currently stands at £11,700.  In calculating the gain, executors may make a deduction to represent the costs of establishing title. This is a scale rate dependent upon the value of the deceased’s estate. If assets are to be sold during the administration period, consideration should be given to whether the sale ought to be carried out by the executors or by the beneficiaries. It may minimise capital gains tax to transfer assets to the beneficiaries prior to a sale as the beneficiaries may have a larger available capital gains tax annual exemption; they may pay capital gains tax at the lower rates of 10% or 18%; or they may have personal capital losses to use. If certain estate assets (including land and quoted shares) realise a loss on sale within prescribed time periods, the executors may claim inheritance tax loss on sale relief. This effectively substitutes the sale proceeds for the probate value for inheritance tax purposes, resulting in an inheritance tax refund. If no inheritance tax was paid, inheritance tax loss on sale relief is not applicable. Therefore, for assets standing at a loss, consideration should be given as to how best to utilise the loss. For example, should the asset be transferred to the beneficiary to sell, or can the executors sell other assets at a gain to fully utilise their capital losses before the end of the administration period? As always, appropriate tax advice should be taken to ensure that the executors are meeting all relevant tax obligations. Fiona Hall is Tax Principal at BDO Northern Ireland.