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GAZETTE
SEPTEMBER 1979
Conveyancing Notes
The Society have received numerous complaints from
country solicitors that correspondence from Government
offices rarely quote the solicitors' office reference. The
Society made representations to the Revenue Com-
missioners and the Registrar of Titles, who say that their
staff are instructed to quote any reference given but
suggest that the problem may be caused by the fact that
many of the dealings in question are lodged by hand by
the solicitor's town agent and that, normally, there would
not be any covering letter giving a reference in such cir-
cumstances. If solicitors take care in such circumstances
to include a letter, quoting their own reference, this should
help to reduce the problem. Similarly, the Land Registry
will quote any reference given on a Form 17 in corres-
pondence with the solicitor who lodged it.
Many solicitors type their office reference on the back
of deeds and other documents and in the opinion of the
Society, this is a good idea and should be adopted more
generally.
CAPITAL GAINS TAX
There have been a number of queries to the Con-
veyancing Committee about the position of a Purchaser
where the Vendor argued that a particular property was
not liable for Capital Gains Tax by reason of being the
Vendor's only or main residence, and declined to furnish
a Capital Gains Tax Clearance Certificate.
The legal position is quite clear. The question of
whether a particular transaction is or is not liable to
Capital Gains Tax is not relevant. A Purchaser is not
required to make any enquiries about the Vendor's tax
liability nor obliged to consider any information about it
that may be given to him. All that is relevant is the
amount of the consideration. If it is over £50,000 the
Solicitor for the Purchaser must insist on a Capital Gains
Tax Clearance Certificate or make the deduction pre-
scribed by the Act from the amount of purchase money
paid by him.
A Solicitor should not offer nor accept an undertaking
to furnish Capital Gains Tax Clearance Certificate.
Solicitors are reminded of the severe sanctions available
against them personally if they fail to fulfil the duties
imposed upon them by the Statute.
CAPITAL GAINS TAX: NEW HOUSES
Members will have noted the increasing number of new
houses where the total price being paid by Purchasers
exceeds £50,000.
Doubts have arisen as to the need for CGT Clearance
Certificates in such cases. The following appears to be the
position:
(1) Where there is an agreement for the purchase of a
site and that agreement is separate from and uncon-
nected with another agreement to erect a building on their
site, a CGT Clearance Certificate is not required for the
protection of the Purchaser unless the price of the site
itself exceeds £50,000.
(2) An Agreement for Sale and Building Agreement
which are considered sufficiently unconnected by the
Revenue Commissioners to enable the Revenue Com-
missioners to assess Stamp Duty on the Site Value only,
should also satisfy the criteria for CGT purposes.
(3) If the Contracts comprise a combined Building
Agreement and Agreement for Lease or if separate con-
tracts are interconnected, then, if the total consideration
exceeds £50,000, the Solicitor for the Purchaser must
insist on getting a CGT Clearance Certificate, or make
the deduction prescribed by the CGT Act 1975.
Independent Actuarial Advice regarding
Interests in Settled Property
and
Claims for Dama g es
BACON & WOODROW
Consulting Actuaries
58 Fitzwilliam Square
Dublin 2
(Telephone 7 6 2 0 3 1)
Special Announcement
from October 1979
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