CGT, Cert of No Audit of residing abroad - Revenue time for clearance

[Mothergoose]

I have gone sale agreed on my house at 550k. It was a rental and then we lived in it. We spent 175k on renovations, so we're at a loss from purchase price to sale of 70k. My accountant has done the CGT calculation and said I owe nothing, and that the Revenue clearance for Cert of No Audit will be very quick as the house is being sold within one year of me moving abroad. However, my solicitor says that the clearance from Revenue could take up to six months, and that he will have to keep the funds during this time as he may be liable for CGT. I have given him my accountants calculations and all receipts for money we spent on renovation, with my accountant stating there is no CGT owed, but he is still insisting on this. I have stated I won't sign the contract for sale if this is the case, but he is sticking to his guns. Property locally is going up at a pace here, and apartments - I am downsizing - that were 360k in April/May, are now going for 430k, and I am concerned that if he keeps the funds from the sale for 6 months that I won't be able to purchase the apartment I want. I am thinking now of just pulling out of the sale as it seems too complicated and stressful. I would welcome advice/information on this scenario.

 

[jpd]

Also, your post was quiet difficult to read - it would be better to break it down into simple paragraphs

You could change solicitor - https://mcgibney.ie/2022/01/11/the-...purpose of the Letter,an audit of your Return.

 

[T McGibney]

You automatically are granted a Letter of No Audit after 35 working days assuming a complete and valid application has been made in the first instance, and provided Revenue haven't raised any queries in the meantime in relation to your CG1 tax return or any other aspect of your case.

Most valid applications are processed much more quickly than that.

Your solicitor is overly pessimistic but otherwise correct.

 

[Mothergoose]

Thanks jpd - apologies for my my post being hard to read = and TMcGibney. I'm glad to here that a Letter of No Audit is granted automatically after 35 days once the application is valid. I presume once the Letter of No Audit is received that there will be no other reason for my solicitor to hang on to the funds? Can I apply for the Letter of No Audit once contracts are signed by both parties, and my accountant has submitted the CGT tax return, rather than wait until the sale is completely closed?

 

[T McGibney]

Can I apply for the Letter of No Audit once contracts are signed by both parties, and my accountant has submitted the CGT tax return, rather than wait until the sale is completely closed?

I wouldn't think so. There's a whole host of items that need to be included in it, including the CG1 return itself and a copy of the sale contract. It is a serious matter that warrants concise and careful attention. It would I presume be problematic to declare a disposal that technically hasn't yet taken place.

 

[Mothergoose]

Thanks for that info. I guess I'm going to have to wait until early next year to go apartment hunting. Maybe not a bad thing, though I don't see the market cooling any time soon.