The Law Society’s Taxation Committee have issued a new practice note to take account this updated guidance from Revenue (Revenue's Tax and Duty Manual (TDM) Part 45-01-05).

The new guidance supplements and updates previous practice notes on this topic and should be read together with the updated Tax and Duty Manual (TDM), which contains the detailed Revenue process and documentation requirements. Updates to the TDM are reflected in the practice note, as well as some other clarifications recently provided to the Taxation Committee by Revenue.

Updates include the following:

• 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.
• 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.
• Where the property was not rented during the period of ownership, the vendor should provide the solicitor with written confirmation of that fact.
• 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 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.

For more information, read the full Practice Note