Tax Appeals Commission determination 194TACD2025 regarding CGT, 2025

• Administrative Decision Number: 194TACD2025
• Year: 2025
• Date: 12 June 2025
• Respondent: REVENUE COMMISSIONERS

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AN COIMISIÚIN UM ACHOMHAIRC CHÁNACH

TAX APPEALS COMMISSION

Between

Appellant

and

REVENUE COMMISSIONERS

Respondent

Determination

Introduction

1. This is an appeal to the Tax Appeals Commission (“the Commission”) by

(“the Appellant”), against an amended assessment to capital gains tax (“CGT”) raised by

the Revenue Commissioners (“the Respondent”) for the year ended 31 December 2023.

The amount of tax at issue is €52,946.00.

2. The Appellant’s wife, with whom the Appellant is jointly assessed, disposed of land in

2023, which led to a chargeable gain and an assessment to CGT in the amount of

€79,460. The Appellant sought to claim negligible loss relief pursuant to section 538(2)

of the Taxes Consolidation Act 1997 as amended (“TCA 1997”). His claim was refused

by the Respondent, on the basis that shares held by him in Allied Irish Banks plc (“AIB”)

and Irish Life and Permanent plc (“IL&P”)1 were not of negligible value.

1 The company is now called Permanent T SB Group Holdings plc, but for conv enience is referred to

as IL&P throughout this Determination.

194TACD2025

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Background

3. On 23 January 2024, the Appellant’s wife filed a CGT return for 2023 which showed a

chargeable gain of in respect of a disposal of land. In February 2024, the

Appellant’s daughter wrote to the Respondent on behalf of her parents, requesting that it

grant relief pursuant to section 538(2) in respect of AIB and IL&P shares. On 5 March

2024, the Respondent refused the claim on the basis that section 538(2) was “not

intended to be a provision for making losses available on an artificial basis in

circumstances where there would be no impediment to an actual disposal of the

shareholding.”

4. On 28 April 2024, the Appellant completed a Form 11 income tax return for 2023, which

claimed inter alia negligible loss relief. On 11 July 2024, the Respondent issued an

amended assessment to CGT, which effectively disallowed the claim for relief. On 23 July

2024, the Appellant appealed against the amended assessment to the Commission.

5. The appeal proceeded by way of a hearing in private on 29 April 2025. The Appellant was

represented by his tax agent. The Respondent was represented by counsel.

Legislation and Guidelines

6. Section 28(1) of the TCA 1997 states that

“Capital gains tax shall be charged in accordance with the Capital Gains Tax Acts in

respect of capital gains, that is, in respect of chargeable gains computed in accordance

with those Acts and accruing to a person on the disposal of assets.”

7. Section 532 of the TCA 1997 states inter alia that

"All forms of property shall be assets for the purposes of the Capital Gains Tax Acts

whether situated in the State or not, including – (a) options, debts, and incorporeal

property generally…”

8. Section 538 of the TCA 1997 states inter alia that

“(1) Subject to the Capital Gains Tax Acts and in particular to section 540, the occasion

of the entire loss, destruction, dissipation or extinction of an asset shall for the

purposes of those Acts constitute a disposal of the asset whether or not any capital

sum as compensation or otherwise is received in respect of the destruction, dissipation

or extinction of the asset.

(2) Where on a claim by the owner of an asset the inspector is satisfied that the value

of an asset has become negligible, the inspector may allow the claim, and thereupon