Capital Gains Tax - Due Dates for Payment

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.

Due Dates

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).

Time of Disposal

• In the case of a straightforward contract, the time of disposal is the date of making the contract – not the time at which the asset is conveyed or transferred.
• In the case of a conditional contract, the time of disposal is the date the condition is satisfied (S542 (1)(a) & (b) TCA 1997 refers). For example, in a contract in which the acquiring of planning permission is a condition precedent, the date of disposal is the date of grant of planning permission.
• Where land is acquired by CPO, the time of disposal is the earlier of the date of agreement or entry onto the land by the authority (S542 (1)(c) TCA 1997 refers).
• There is special treatment of farming land acquired by CPO for road widening or road making – the gain is deemed to accrue in the year of assessment in which the consideration is received (S542 (1)(d) 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.