CGT calculation - can I deduct the D.C.C. Clawback charge?

I

IRISHJC

New Member
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4
Hello All,

After 17 years ownership I have sold my affordable apartment and paid the clawback fee to D.C.C.
My accountant when calculating the CGT figure has mentioned that the clawback is not claimable as an expense.

This does not seem right because it would mean that I pay the CGT on all of the small profit made, even for the portion that D.C,.C. gained.

I have completed many Google searches on this and can find no information.
Can anyone advise on this please?

Does anyone know where there may be information on this available please?

Thank You.
 
It might be helpful if you briefly explain the clawback, what it was and how it worked. Was it something to do with Stamp Duty?

I can barely remember it myself.
 
T McGibney said:
if you briefly explain the clawback,
Click to expand...

Here is an example

Affordable housing clawback

Hi just wondering if anyone can help me out with calculations with the clawback from the affordable house. I want to sell my house but I’m trying to find out how much I need to pay back to the council. I bought my house for €165,000. original price was €245,000. Recently got my house valued at...
www.askaboutmoney.com
 
If it was not your PPR and is subject to CGT

Then the "clawback" would be part of the price you paid for the house.

You got a discount. On selling the house, the discount was clawed back.

So the Capital Gain would be

Selling price
- price paid
- clawback

Brendan
 
Brendan Burgess said:
If it was not your PPR and is subject to CGT

Then the "clawback" would be part of the price you paid for the house.

You got a discount. On selling the house, the discount was clawed back.

So the Capital Gain would be

Selling price
- price paid
- clawback

Brendan
Click to expand...
Hi @Brendan Burgess , thank you for your reply.
My thoughts are aligned with yours, the Clawback should be deducted from the selling price as it was not my profit.
My accountant has not done this and has instructed that the calculation is
Selling Price
- price paid.

She said that she needs to check with the revenue about the clawback, and in the meantime I pay the CGT on all of the difference, including the clawback, this seems nonsensical to me.
However I cannot find it documented anywhere officially that the clawback should be deducted from the selling price. That is what I am after. Something official I can send to the accountant.
(Apartment was let out for a few years so CGT applies unfortunately).
 
IRISHJC said:
She said that she needs to check with the revenue about the clawback,
Click to expand...
Your accountant shouldn't be checking anything of this nature with Revenue.

They are totally unaccountable even if they give her totally incorrect advice.

IRISHJC said:
and in the meantime I pay the CGT on all of the difference, including the clawback, this seems nonsensical to me.
Click to expand...

No, you pay the amount of the CGT that you consider to be owing, both on foot of your accountant's advice and what other relevant information you have managed to glean.
 
T McGibney said:
Your accountant shouldn't be checking anything of this nature with Revenue.

They are totally unaccountable even if they give her totally incorrect advice.



No, you pay the amount of the CGT that you consider to be owing, both on foot of your accountant's advice and what other relevant information you have managed to glean.
Click to expand...
agreed
 
T McGibney said:
Your accountant shouldn't be checking anything of this nature with Revenue.

They are totally unaccountable even if they give her totally incorrect advice.



No, you pay the amount of the CGT that you consider to be owing, both on foot of your accountant's advice and what other relevant information you have managed to glean.
Click to expand...
Agree and this is the information that I am trying to glean! Hence the request for any links to official information that anyone can share a link to.
Again my request is if anyone has been in this situation before and has any links to official documentation about the same. Thank you
 
Last edited by a moderator:
Is it your solicitor by any chance who needs a statement that all taxes have been paid before selling it?

If the sale has gone through then submit your calculation to Revenue but explain how you did the calculation and let them challenge it.
They won't.

Brendan
 
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