The Gazette 1979

SEPTEMBER 1979

GAZETTE

Conveyancing Notes

The Society have received numerous complaints from country solicitors that correspondence from Government offices rarely quote the solicitors' office reference. The Society made representations to the Revenue Com- missioners and the Registrar of Titles, who say that their staff are instructed to quote any reference given but suggest that the problem may be caused by the fact that many of the dealings in question are lodged by hand by the solicitor's town agent and that, normally, there would not be any covering letter giving a reference in such cir- cumstances. If solicitors take care in such circumstances to include a letter, quoting their own reference, this should help to reduce the problem. Similarly, the Land Registry will quote any reference given on a Form 17 in corres- pondence with the solicitor who lodged it. Many solicitors type their office reference on the back of deeds and other documents and in the opinion of the Society, this is a good idea and should be adopted more generally. CAPITAL GAINS TAX There have been a number of queries to the Con- veyancing Committee about the position of a Purchaser where the Vendor argued that a particular property was not liable for Capital Gains Tax by reason of being the Vendor's only or main residence, and declined to furnish a Capital Gains Tax Clearance Certificate. The legal position is quite clear. The question of whether a particular transaction is or is not liable to Capital Gains Tax is not relevant. A Purchaser is not required to make any enquiries about the Vendor's tax liability nor obliged to consider any information about it that may be given to him. All that is relevant is the amount of the consideration. If it is over £50,000 the Solicitor for the Purchaser must insist on a Capital Gains Tax Clearance Certificate or make the deduction pre- scribed by the Act from the amount of purchase money paid by him. A Solicitor should not offer nor accept an undertaking to furnish Capital Gains Tax Clearance Certificate. Solicitors are reminded of the severe sanctions available against them personally if they fail to fulfil the duties imposed upon them by the Statute. CAPITAL GAINS TAX: NEW HOUSES Members will have noted the increasing number of new houses where the total price being paid by Purchasers exceeds £50,000. Doubts have arisen as to the need for CGT Clearance Certificates in such cases. The following appears to be the position: (1) Where there is an agreement for the purchase of a site and that agreement is separate from and uncon- nected with another agreement to erect a building on their site, a CGT Clearance Certificate is not required for the protection of the Purchaser unless the price of the site itself exceeds £50,000. (2) An Agreement for Sale and Building Agreement which are considered sufficiently unconnected by the

Revenue Commissioners to enable the Revenue Com- missioners to assess Stamp Duty on the Site Value only, should also satisfy the criteria for CGT purposes. (3) If the Contracts comprise a combined Building Agreement and Agreement for Lease or if separate con- tracts are interconnected, then, if the total consideration exceeds £50,000, the Solicitor for the Purchaser must insist on getting a CGT Clearance Certificate, or make the deduction prescribed by the CGT Act 1975.

Independent Actuarial Advice regarding Interests in Settled Property and Claims for Dama g es BACON & WOODROW

Consulting Actuaries 58 Fitzwilliam Square Dublin 2 (Telephone 7 6 2 0 3 1)

Special Announcement from October 1979 DETECTIVES (Private) Éire B E COME INTERCITY INVESTIGATIONS (Ireland) Limited

2 94 Merrion Ro ad Dublin, Ireland Dublin (01) 6 9 1 5 61 also at

Belfast ( 0232) 6 6 3 6 68 London (01) 6 8 0 5 1 50 Brighton ( 0273) 5 9 1 4 58 New York ( 212) 7 5 8 2 1 07 Re no, Ne v a da ( 702) 8 5 1 3 4 00 Telex 3 0 4 93

187