Tax Appeals Commission determination 127TACD2021 regarding CGT, 2021

• Administrative Decision Number: 127TACD2021
• Year: 2021
• Date: 05 August 2021
• Subject Matter: CGT

127TACD2021

APPELLANT

V

THE REVENUE COMMISSIONERS

RESPONDENT

DETERMINATION

Introduction

1. This is an appeal against a capital gains tax (CGT) assessment raised on the Appellant in respect

of a disposal of land arising from a county council CPO (Disposal B). In June 2007 the CPO

acquired a part of the Appellant’s farmlands together with the Appellant’s dwelling in order to

facilitate the construction of a motorway. (What remained were two tranches of agricultural land

either side of the proposed motorway, one being approximately 25 acres containing the farmyard

and the other being 42 acres of agricultural land. These two tranches of land were disposed of in

June 2007 (Disposal A). No “roll-over” relief is being sought in respect of Disposal A and as a

result, in this respect, Disposal A does not form part of the matters in dispute in this appeal.)

2. The Appellant purchased a new property consisting of agricultural land and a dwelling

house in March 2007.

3. An assessment to CGT was raised on 11 April 2012 in relation to the land disposal

associated with the CPO. The Appellant has appealed the assessment on the basis that he

is entitled to claim roll over relief under Sections 535 and 536 TCA 1997 in relation to

some of the CPO proceeds because of his acquisition of the new property.

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4. This Appeal was heard by remote hearing on May 2021 before the Tax Appeals

Commission.

Background

5. The Appellant is a farmer who formerly held approximately 30.7 hectares (77.85 acres)

of farmland in which was disposed of in its entirety in

June 2007. The Appellant carried on dry stock farming carrying suckle cows, cattle and

sheep. In or about 11th June 2007 the Appellant and his wife entered into an agreement

with County Council ( “Council”) to transfer 3.8 hectares (9.6 acres) of land held at

to the Council on foot of a Compulsory Purchase Order ("CPO") for the

purpose of building an addition to the roadway and received the sum of €1,300,000

in compensation (“Disposal B”). A residential home was situate on the land subject to the

CPO.

6. On 1st June 2007 the Appellant and his wife entered into a separate contract for sale with

for the sale of the remaining two plots of land measuring

approximately 17.3 hectares (42.7 acres) and 9.6 hectares (23.7 acres) respectively for

consideration of an additional €1,300,000 (“Disposal A”).

7. Prior to the above Disposals, by contract of sale dated 27 March 2007 the Appellant

purchased a 19 hectare (47 acre) farm and residential house in

for €1,050,000.

8. The Appellant paid preliminary Capital Gains Tax (CGT) of €270,000 on 8th January 2008

but failed to submit a CGT return prior to the 2007 tax year filing deadline.

9. The Revenue Commissioners commenced a desk audit on 22nd February 2012 and issued

a CGT assessment to the Appellant on 11 April 2012 in the amount of €417,368, inclusive