CG50s and deduction of CGT from consideration on certain disposals

Feb 22, 2021

The Tax and Duty Manual Part 42-03-01 - Deduction from consideration on disposal of certain assets (s.980) – now includes guidance on eCG50 applications. The manual has also been updated to provide guidance for applications in specific circumstances and clarity on the interaction of certain sections of TCA 1997.

The updates to manual provide:

  • guidance on the online eCG50 application processing system and updates on paper-based applications;
    • Revenue will continue to support paper-based applications; however, from 1 July 2021, taxpayers and agents should allow 10 working days in advance of the closing date for applications to be processed;
  • clarity for the application to disposals by way of a gift;
  • clarity on the interaction of sections 615, 617 and 980;
    • Revenue clarify in the case of transfers of assets to which sections 615 or 617 apply, the consideration for section 980 purposes is deemed to be the original cost of acquiring the asset by the vendor company; and
  • guidance for applications in specific circumstances, including; disposal by receiver or mortgagee in possession, resident individuals with no tax reference number, multiple vendors, Executors/Administrator, etc., purchase in trust, simultaneous signing and closing of contracts, disposals where there is no contract, consideration payable by instalments, disposals by co-ownerships and liquidators.

See eBrief No. 033/21 for further details.