Following discussions with practitioner bodies at the TALC Technical forum concerning the application of section 980 TCA 1997 to intra-group transfers of assets which qualify for relief under section 617 TCA 1997, Revenue has issued Tax Briefing 13.

Revenue has confirmed that in the case of transfers of assets to which section 617 TCA 1997 applies; the consideration is deemed to be the original cost of acquiring the asset by the vendor company. This is also to be regarded as the consideration for such transfers for the purposes of section 980 TCA 1997 and, where this does not exceed €500,000, the requirement under that section to deduct 15% from the purchase price in respect of capital gains tax or obtain a tax clearance certificate, CG50A, does not apply.

Further information on the application of section 980 TCA 1997 to intra-group transfers and a number of examples illustrating the position is set out in Revenue's Tax Briefing 13 which is available here.