Previous Page  447 / 822 Next Page
Information
Show Menu
Previous Page 447 / 822 Next Page
Page Background

GAZETTE

SEPTEMBER 1988

Practice

Notes

Capital Gains Tax

The Revenue Commissioners have

recently confirmed to the Society

that the guidelines published in the

November 1979

Gazette,

which are

r e - p u b l i s h ed be l ow, are s t i ll

applicable.

Capital Gains Tax

There have been a number of

que r i es t o t he Co n v e y a n c i ng

Commi t t ee about the position of a

Pu r chaser wh e re t he Vendor

argued that a particular property

was not liable for Capital Gains Tax

by reason of being the Vendor's

on l y or ma in r es i dence, and

declined to furnish a Capital Gains

Tax Clearance Certificate.

The legal position is quite clear.

The q u e s t i on of w h e t h er a

particular transaction is or is not

liable to Capital Gains Tax is not

r e l evan t. A Pu r chaser 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

£ 5 0 , 0 00 the Solicitor for the

Purchaser must insist on a Capital

Gains Tax Clearance Certificate or

make the deduction prescribed by

the Act f r om the amount of pur-

chase money paid by him.

A Solicitor should not offer nor

accept an undertaking to furnish

Ca p i t al Ga i ns Tax C l ea r an ce

Certificate. Solicitors are reminded

of the severe sanctions available

against t hem personally if they fail

to fulfil the duties imposed upon

t hem by the Statute.

Capital Gains Tax: New Housas

Membe rs will have no t ed t he

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 Certifi-

cates 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

unconnected w i th another agree-

ment 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 wh i ch are

cons i de r ed s u f f i c i en t ly uncon-

nected by the Revenue Commiss-

ioners to enable the Revenue

Commissioners 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

contracts 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.

Cou r t s -Ma r t i al

(Legal Aid) Regulations,

1988

S.I. No. 125 of 1988

These Regulations provide for

increases, w i th effect from 27

April, 1988, in the legal aid fees

payable to solicitors, in respect of

certain attendances at c o u r t s -

ma r t i al and visits to prisons,

d e t e n t i on ba r r acks and o t her

custodial centres.

The fees payable to a solicitor

assigned to a case, under Regula-

tions 12(2)(a) of the C o u r t s-

Martial (Legal Aid) Regulations,

1986 to 1988, shall be £ 9 9 . 24

together w i t h, if the hearing lasts

for more than one day, £44.14 for

each day or part of a day after the

first for wh i ch the hearing lasts and

for wh i ch the solicitor attends the

hearing.

The fee payable under Regulation

14 in respect of a visit by a solicitor

to a prison, detention barrack or

other custodial centre, shall be

£25 . 73 for each such visit plus

travelling expenses.

Jur i sd i c t i on of Courts

and Enforcement of

Judgmen ts (European

Commun i t i es Ac t, 1988).

S.I. 91 of 1988 gives effect to this

Act (passed on 5 March, 1988) as

and from 1 June, 1988.

The legislation changes the

c ommon law rules on the Jurisdic-

t i on of Irish Courts in cases

involving international aspects and

f a c i l i t a t es t he r e c o g n i t i on of

judgments from other E.E.C. states.

(See Gazettes Dec., 1985, Jan/Feb.,

1986 and June, 1987).

The Act is available from the

Goverment Publications Sale Office

at a cost of £4.10 plus postage.

The High Court

Practice Direction

The attention of practitioners is

drawn to the Jurisdiction of Courts

and Enforcement of Judgmen ts

(European Communities) Act, 1988

(N. 3 of 1988) wh i ch came into

operation on 1st June 1988 in

accordance w i th the provisions of

Article 2 of the Jurisdiction of

Courts and Enforcement of Judg-

ments (European Communities)

Act, 1988 (Commencement) Order,

1988 (S.I. No. 91 of 1988).

Pending the making of amend-

ments to the Rules of the Superior

Courts by the Superior Courts

Rules Committee, a s ummo ns

wh i ch is to be served out of the

Jurisdiction may be issued w i t hout

the leave of the High Court, if but

only if, it comp l i es w i t h the

following conditions:

(a)That each claim made by the

summons is one wh i ch by virtue of

the Jurisdiction of Courts and

E n f o r c eme nt

of

J u d g m e n ts

(European Communities) Act 1988

the Court has power to hear and

determine: and

(b)That the summons is en-

dorsed before it is issued w i t h a

s t a t ement t hat the Court has

power under the Jurisdiction of

Courts and Enforcement of Judg-

ments (European Communities)

Act, 1988 to hear and determine

the claim, and that no proceedings

involving the same cause of action

are pending be tween the parties in

another Contracting State.

C o n t r a c t i ng S t a te f or t he

purpose of this Practice Direction

means Belgium, Demark, France,

209