Review period for CGT on sale of second home

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frankbradz

Registered User
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In 2001 I purchased a house in N.Ireland. My parents put up 50% of the cost, by selling their existing home and I took on the remaining 50% in a mortgage. My parents lived in the house as their sole residence up until the house was sold in 2019. When the house was sold I got 50% and my parents got 50% in line with what we contributed to the purchase price. This arrangement was agreed via a declaration of trust document, held by our solicitor.

In Sept 2020 I settled my 2019 CGT affairs with UK and ROI Revenue. My ROI CGT figure was calculated on the basis of the 50% of the sale that I received.

It is now 6 months since I made my CGT payment and I haven't heard anything back from ROI Revenue. Is this enough time to assume that the amount won't be challenged, or should I wait longer?
 
Generally Revenue has 4 years to make any inquiries. Is there a reason why you should be concerned they may challenge you return?
 
Ordinary User said:
Generally Revenue has 4 years to make any inquiries. Is there a reason why you should be concerned they may challenge you return?
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The house in N.Ireland was in my name, even though my parents contributed to 50% of the purchase price and took 50% of the profit. They also lived in the house for the full 18 years, until it was sold.

My accountant and solicitor have advised me that the Declaration of Trust we signed in 2001 should be sufficient as evidence on this matter. However, my experience is that there are no guarantees when it comes to Revenue. I've set aside a sum of the sale proceeds in the event Revenue does challenge what I've declared. The last thing I want to do is spend this money and then have Revenue come saying that what I declared was not enough.

Are you saying I need to wait 4 years, until it is safe to touch this money I've set aside?
 
Is it possible to approach Revenue and ask them to verify if they are happy with my declaration?
 
frankbradz said:
Is it possible to approach Revenue and ask them to verify if they are happy with my declaration?
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If you were worried/confused about the situation then you could have availed of an expression of doubt when the return was filed. Have you discussed your concerns with your tax agent?
 
frankbradz said:
Is it possible to approach Revenue and ask them to verify if they are happy with my declaration?
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That would be an insane approach.

“Hi Guys...that declaration I sent into you...just double-checking you’re fine with it?”

Talk about a red flag...

Your accountant and solicitor have advised you that’s it’s okay; I agree with them.
 
torblednam said:
Who paid the mortgage for the 18 years?
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Both myself and my parents. The money came out of my N.Ireland bank account. Each month they contributed 50% of the mortgage payment. They also contributed 50% of the initial purchase price. So the house cost £60k. They contributed £30k and I took out a mortgage for £30k.
 
frankbradz said:
Both myself and my parents. The money came out of my N.Ireland bank account. Each month they contributed 50% of the mortgage payment. They also contributed 50% of the initial purchase price. So the house cost £60k. They contributed £30k and I took out a mortgage for £30k.
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So they have paid 75% of the cost by the looks of it, is that right? i.e. 50% up front, and half of the other 50% that was mortgaged?
 
relax carry on said:
That is not correct. Revenue can go beyond the standard 4 year limit in compliance cases where fraud or neglect is suspected.
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True, I have assumed a genuine return and from description above we can see that professional advice was sought, so wouldn't consider this case as fraudulent nor negligent. best
 
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