The Revenue have decided to target unpaid capital gains tax (CGT) liabilities from the sale of investment properties. No CGT is usually payable on the sale of your main home, but it is due on the sale of second and investment properties. The Revenue have stated that they have obtained evidence that a significant number of individuals sold investment properties during 2008 without paying the CGT which was due.
Revenue have sent letters to an initial 7,000 individuals whom they understand to have sold an investment property during 2008. The letter outlines the law in relation to CGT on the sale of investment properties and other second homes.
If you sold an investment property in 2008, a CGT return and payslip should have been filed before 31st October 2009. However, the actual payment of the tax due should have been paid much earlier. If the property was sold between 1 January 2008 and 30 September 2008, the payment should have been made to the Revenue by 31 October 2008. CGT payments on the sale of properties between 1 October 2008 and 31 December 2008 should have been made by 31 January 2009.
The Revenue can charge interest on the late payment of tax at a rate of approximately 10% per annum. If you believe you may have an unpaid tax liability it is advisable to address this sooner rather than later in order to minimise potential interest charges.
The Revenue have prepared a set of FAQs to assist individuals to establish whether they may have a CGT liability. This can be found at: