A number of instances have come to attention recently relating to interest incurred by taxpayers on late payment of Capital Gains Tax.
In these cases, delays in closing contracts were put forward as the reason for not paying the tax on time.
This e-Brief is being issued to remind practitioners of the due dates for payment of Capital Gains Tax.
Where a disposal takes place in the first nine months of the year -> the due date is on or before 31 October in that year.
Where a disposal is in the last three months of the year -> the due date is on or before the following 31 January (S958 TCA 1997 refers).
It is important for practitioners to be aware of the above due dates - particularly where the time of disposal may be prior to a due date in any year but a contract is not closed until after a due date. Delays in closing contracts for whatever reason cannot be put forward as a basis for not paying Capital Gains Tax on time. Any such late payment is subject to the statutory interest charge.