Income Tax Clearance and Tax Update

11 September 2020


No, this is not an email about what’s happened to cashflow mid September, but it could be! It’s just a short note on the new world we are facing until we wait for Statements of Affairs (SA2) to come into being. A further issue that arises is the question of income tax clearance for your estate. The normal system was that a copy of the CA24 was sent to the relevant tax office (normally the income tax office nearest to the deceased). I spoke with contacts in Revenue during the week and they appear to be unclear how income tax clearance will be dealt with under the new regime. So, it appears Revenue officers on the ground that deal with income tax clearance have yet to be informed. However, one would have thought that clearance should be more streamlined now with everything online. I would have thought that My Enquiries will be used for this arrangement. However, we will have to watch this space, because, obviously obtaining income tax clearance is an essential part of our overall probate process.

Also there has been updates to the Stamp Duty Manuals in relation to certain agricultural reliefs which may be of interest to you or your clients. The changes are set out in Revenue E-Brief No. 163/20. The Updates relate to the following:

The Stamp Duty Tax Manuals titled Transfers of Land to Young Trained Farmers and Relief for Leases of Farmland have been amended to include the Bachelor of Science in Agricultural Science awarded by Tralee Institute of Technology, in the list of approved courses.

In addition, the Manual on Relief for Leases of Farmland has been amended to reflect the increased EU State aid limit of €20,000 (previously €15,000) that now applies to this relief.