Note: Previous Practice Notes on this issue can be reviewed at October 2022 and March 2025.
This Practice Note updates the Law Society Taxation Committee’s previous practice notes on disposals of property by non-resident vendors following the May 2026 update to Revenue's Tax and Duty Manual (TDM) Part 45-01-05. It should be read together with the updated TDM, which contains the detailed Revenue process and documentation requirements.
Sections 1034 and 1043 of the Taxes Consolidation Act 1997 (TCA 1997) provide that a non-resident person may be assessed and charged to income tax and capital gains tax (CGT) in the name of a representative in the State, which could include a Solicitor. The TDM clearance process is directed at Revenue clearance for representatives under sections 1034 and 1043 in respect of disposals of Irish land and buildings by non-resident vendors.
The Committee’s standing advice remains that solicitors acting for non-resident vendors should not distribute the relevant sale proceeds until Revenue clearance (or deemed clearance) under the TDM process, is available.
It should also be noted that Revenue have indicated to the Committee that, where section 1035 TCA 1997 applies, it falls outside the clearance process described in TDM Part 45-01-05 and so must be dealt with separately on a case-by-case basis.
Clearance where the property was rented during ownership
The updated TDM now clarifies that, where a non-resident vendor disposes of Irish land or buildings and no chargeable gain arises, a clearance request is not required if the property was not rented during the period of ownership. However, where the property was rented during the period of ownership, a clearance request should still be submitted to Revenue notwithstanding that no chargeable gain arises.
The updated TDM also notes that, where the property was not rented during the period of ownership, the vendor should provide the solicitor with written confirmation of that fact.
CGT payment timing for non-resident vendors
The updated TDM includes further guidance on the timing of CGT payments by non-residents disposing of Irish land and buildings. Under section 1042(1) TCA 1997, such CGT is payable by the later of:
- three months after the date of disposal; or
- two months after the assessment issues.
The updated TDM also notes that, in order to avail of the clearance process, CGT due should be paid when the representative submits the clearance request.
Property use and income tax compliance
Section 4 of the TDM sets out the documentation and returns that must accompany a clearance request. In particular, paragraph g) of this section requires details on how the property was used during the period of ownership and, where the property was rented, confirmation that all relevant income tax returns have been filed and all liabilities paid. Where the income tax returns were filed by a resident agent on behalf of the non-resident landlord, details of the agent's PPS number must also be provided. The updated TDM notes that such information ensures that secondary liability to income tax does not arise.
The updated TDM also confirms that, in cases where the property was not rented, confirmation of this fact will suffice and the vendor should provide the representative with written confirmation that the property had not been rented during the period of ownership.
Recommendation
Solicitors should establish at the outset whether the property was rented at any time during the period of ownership, as this may affect whether a clearance request is required. Where the property was not rented during the period of ownership, solicitors should obtain written confirmation of that fact from the vendor.
Revenue clarification on joint owners
The Committee has sought clarification from Revenue regarding disposals of Irish land or buildings by joint owners where one vendor is resident and the other is non-resident.
Revenue have confirmed that, as a general principle, the secondary liability risk under sections 1034/1043 TCA 1997 relates to the non-resident vendor's CGT liability only and the resident vendor's share of the proceeds is outside the scope of the automatic clearance process. Revenue further stated that there is nothing within TDM Part 45-01-05 or the clearance process therein that prevents a solicitor from distributing the resident vendor's share of the sale proceeds.
Closing note
This Practice Note highlights the key practical implications of the May 2026 update to TDM 45-01-05 and does not replace the TDM. Practitioners should review TDM 45-01-05 in full, including its appendices, before submitting a clearance request or distributing sale proceeds.
