54 Payment of tax by instalments

Summary

This section provides that, in the case of real property (i.e. land and buildings) and in the case of a limited interest in any property, tax may, at the option of the person liable for tax, be paid by monthly instalments over a period not exceeding 5 years in such manner as may be determined by the Revenue Commissioners. . Interest on an unpaid balance, at the rate or rates set out in Part 1 of the Table in section 51(2) (inserted by section 145 of the Finance Act 2005), will be added to each instalment. This provision does not apply to tax arising by reason of section 20.

An outstanding balance can be paid at any time and, except in the case of a limited interest, it must be paid in the event of a sale of the property concerned. Instalments due after the death of a donee or successor, who is a life tenant, will not be payable.

Details

(1) Tax may, at the option of the person delivering the return, be paid by monthly instalments over a period not exceeding 5 years in manner as may be determined by the Revenue Commissioners. Interest on any unpaid tax, at the rate or rates set out in Part 1 of the Table in section 51(2) (inserted by section 145 of the Finance Act 2005), will be added to, and payable with, each instalment. This provision does not apply to tax arising by reason of section 20.

(2) An unpaid instalment can be paid before it becomes due.

(3) Except in the case of a limited interest, all unpaid instalments must be paid on completion of a sale or compulsory acquisition of the property comprised in the gift or inheritance.

(4) Tax on an absolute interest in personal property may not be paid by instalments. Thus, the facility to pay by instalments applies to tax chargeable on real property and limited interests in personal property only.

(5) Where the donee or successor, who is a life tenant, dies before all the instalments have become due i.e. within 5 years of the valuation date, those instalments due after his/her death will not be payable. If all the tax, or some instalments, have been paid in advance, the amount of tax, or those instalments due for the period subsequent to the death of the life tenant, will be treated as an overpayment of tax and will be refunded.

Relevant Date: Finance Act 2015