CGT Withholding Tax S. 980 TCA 1997

Deduction from Consideration on disposal of Certain Assets

Section 980(4) Taxes Consolidation Act, 1997 states that where an asset, to which this section applies, is being acquired the purchaser must deduct an amount equal to 15 per cent of the payment for capital gains tax unless the vendor produces one of the certificates referred to in the section.

Where a person deducts withholding tax on the purchase of an asset he/she must make a return of the transaction and the tax deducted to the Revenue Commissioners.

Section 980(7) TCA 1997 provides that in computing the capital gains tax liability on the disposal, the vendor is entitled, on making a claim, to relief for the tax deducted by the purchaser. A vendor may apply for relief to his/her local Revenue Office by submitting a completed Form CG50B. This Form is completed in full by the purchaser and transmitted to the vendor who, in turn, submits it to his/her local Revenue Office.

Form CG50B is available on the revenue website, www.revenue.ie under Forms, Forms for Individuals, Capital Gains Tax or from your local Revenue Office.