Revenue E-Brief

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Revenue E-Brief Issue 4, 19 February 2004

Capital Gains Tax-Time of Disposal of Conditional Contracts

Following the High Court judgement in the case of O’Connor v Coady, reported in December 2003, we have received enquiries regarding its implications on the application of Section 542 of the Taxes Consolidation Act, 1997. This non-tax case concerned planning permission and the rescission of contract.

Having considered the facts, the Office of the Revenue Commissioners believes that no change is required to the existing treatment of conditional contracts. Where the contract is conditional, the time of disposal will continue to be the time when the condition is satisfied. Consequently, if a contract is stated to be conditional on the grant of planning permission, the time of disposal will be when such planning permission is granted.