The beneficial ownership of the asset changes once there's an unconditional, binding contract for sale in force. From that point on, the purchaser can compel the owner to transfer title to him.
It's the legal ownership that changes at completion.
The beneficial ownership of the asset changes once there's an unconditional, binding contract for sale in force. From that point on, the purchaser can compel the owner to transfer title to him.That doesn't sound right to me either. Surely it's when the beneficial ownership of the asset changes?
The beneficial ownership of the asset changes once there's an unconditional, binding contract for sale in force. From that point on, the purchaser can compel the owner to transfer title to him.
That is correct, or at least what my solicitor told me.It's the legal ownership that changes at completion.
My tenants told me the bank had asked them to get house insurance and mortgage protection for the mortgage approval, so even before any contracts! I dont know if this is right, but the fact that they are currently living their as tenants might have something to do with it...You mean that the purchaser is, for example, supposed to insure the property as their own from the time that they sign contracts as opposed to close the deal? That's not my experience.
Yeah, but if CGT isnt due til the following year, you should have the money by then?I think solicitors try to get the contract signed and binding and the sale closed very close together to prevent you having a binding contract and no cash to pay the CGT, but it is something to watch in case there is a delay.
I went back on my records from decades ago. My excel from then had Date of Acquisition as Date of contract, I must have got that from Revenue of the time, this is the days before google etc. And I used date of transfer, not contract, for Date of Sale. No accountant involved. I know I submitted a return and paid CGT. Then I used that excel for my recent sales. It also involved changing pounds to Euro's. Plus indexation relief.That's what I was told, but if the contract is conditional on something, it becomes binding when the condition is fulfilled and that is the disposal date for CGT purposes.
It is all a bit odd, but I've been through a couple of sales now and I have had to get advice on the CGT. I'm sure the guy knows what he is talking about and the Revenue manual backs it up.
I think solicitors try to get the contract signed and binding and the sale closed very close together to prevent you having a binding contract and no cash to pay the CGT, but it is something to watch in case there is a delay.
This is my case. I had to pay by Dec 15th which I did. Did the CGT calculation with my accountant and he did something to organise this for me. And then he put the details in the normal tax return for me the following year Form 11, but he mentioned he only had to put in a couple of details as revenue do not look for detailed calculations at all. They only do that in case of audit he said. I thought he'd done a CGT return before Dec 15th so I assume now this is not how it works.I think the Capital Gains Tax for disposals made between Janury 1st and Nov 3oth must be paid by Dec 15th of the same year.
And
Disposals between 1st December and 31st December must be paid by 31st January of the following year.
But your CGT return is only required on or before 31st October of the year that follows the disposal.
Of course things can still fall thru. The contract is not enforceable if it says 'subject to mortgage' and the bank pulls the mortgage approval. Which has happened. In addition, even if mortgage approval came thru, so the condition is satisfied if the purchaser pulls out, dies, goes to Australia, (which happened during the Celtic Tiger) then you'd be a fool to try and enforce it. You just keep your 10% and there is no sale.Once contracts are signed, things can't fall through - you can enforce the contract through the courts if necessary
I’m a non resident. My accountant told me his costs were not an eligible deduction for CGT. My solicitor who I’m close with never put a tax requirement on me, but she knows I do everything correctly tax wise etc. Plus I’ve other Irish property so maybe there was no concern there.As an overseas resident, my solicitor is requiring me to hire an accountant to perform the CGT calculation. He claims that he is liable for any shortfall in cgt and therefore requires this calculation from a chartered accountant. Another (tax deductible) cost to me then..
So does the beneficial owner change on the date of contract, even if the contract isn't definitive - that seems a bit strange?Of course things can still fall thru. The contract is not enforceable if it says 'subject to mortgage' and the bank pulls the mortgage approval. Which has happened. In addition, even if mortgage approval came thru, so the condition is satisfied if the purchaser pulls out, dies, goes to Australia, (which happened during the Celtic Tiger) then you'd be a fool to try and enforce it. You just keep your 10% and there is no sale.