# What is a certificate of discharge from capital gains tax all about?



## agencydude (5 Apr 2006)

Hi,

I'm currently selling my house . I got a letter from my solicitor today to say I have to get a certificate of discharge from capital gains tax as I sold my house for over €500k.

To get this document will cost me €200 plus vat.

Whats this document for and why is it so expensive?


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## ClubMan (5 Apr 2006)

Are you sure it's not [broken link removed]?


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## agencydude (5 Apr 2006)

Hi Clubman,
Thanks for reply. The solicitor definitely said 'capital gains tax' in the  letter.

I'll have to ask them is this what they really mean.

cheers


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## ClubMan (5 Apr 2006)

I remember my mother having to obtain a certificate of clearance for Capital Taxes (which I presume covers _Capital Gains _and _Capital Acquisition Tax _including _Gift Tax _and _Inheritance Tax_) from the _Capital Taxes Division of Revenue _in _Dublin Castle _if I recall correctly) in relation to my father's estate after he died. Perhaps it's a general capital taxes clearance cert to show that nothing is owed? Not sure why a house sale price of €500K. Your solicitor really should be able to explain this better to you.


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## xeresod (6 Apr 2006)

agencydude said:
			
		

> I'm currently selling my house . I got a letter from my solicitor today to say I have to get a certificate of discharge from capital gains tax as I sold my house for over €500k.
> 
> To get this document will cost me €200 plus vat.
> 
> Whats this document for and why is it so expensive?


 
Sounds like it may be CG50A tax clearance certificate which is required when a person is disposing of an asset where the consideration exceeds €500,000 or else 15% of the sale price will be withheld and passed onto Revenue.

Basically, you give details of the asset on Form CG50 citing one of the following conditions;

The person making the disposal is Resident in the State 
No Capital Gains Tax is payable in respect of the disposal
The Capital Gains Tax Liability has been paid

Which in your case would be condition 1. You still need to submit your CGT return and payment as normal but this certificate will prevent 15% of the full sale price being withheld. 

Here is the form [broken link removed]. See pages 27 & 28 of this guide for more information http://www.revenue.ie/leaflets/cgt1.pdf.

Note, _*there is no charge for this*_, you just submit the fully completed form along with a copy of the contract of sale to your normal Revenue office and receive the certificate back from them by post. The charge of €200 must be what your solicitor is going to charge you for this relatively simple issue, which you could easily do yourself.



			
				ClubMan said:
			
		

> Not sure why a house sale price of €500K.


 
This is standard and applies to all assets over that threshold including peoples PPR's (in which case condition 2 above applies). Up until a couple of years ago it used to be €250,000 but Revenue were getting so many applications for the clearance certificate just from the sale of PPR's that the threshold was increased, but seeing what house prices are at now it really needs to be incresed again!


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## ClubMan (6 Apr 2006)

Thanks _xeresod_.


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## agencydude (6 Apr 2006)

Thanks very much _xeresod_.

Can you confirm if the copy of the sales contract has to be fully signed when sending it into revenue??


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