On 28 August 2026, Irish Revenue published eBrief No. 123/26 explaining the deduction from consideration on disposal of certain assets under Section 980 of the Taxes Consolidation Act 1997. This provision allows a deduction from the sale proceeds of certain assets (primarily land and buildings) where the consideration includes an amount attributable to the benefit of a lease or other right that the vendor has granted. The eBrief provides worked examples, clarifies the interaction with capital allowances, and outlines the documentation required to support the deduction claim.
Key Takeaways
- Scope of Deduction: Applies where consideration for disposal includes value attributable to a lease, licence, or other right granted by the vendor. The deduction equals the present value of the future income stream from that right.
- Interaction with Capital Allowances: The deduction reduces the chargeable gain but does not affect balancing allowances or charges on plant and machinery. Separate computations are required.
- Evidence Requirements: Taxpayers must retain valuation reports, lease agreements, and discount rate calculations for six years. Revenue may challenge valuations not supported by independent evidence.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement