We have a client who was subject to a CPO of land near her PPR. Her house sits on a 2.5 acre site and 1.6 acres were acquired. The CGT was paid on the 1.6 acres aquired. She received €32,047 in compensation from the council. We queried what the compensation was for and they said disturbance – but mainly for the devaluation of her PPR.
The Revenue have refused our claim for PPR relief on this compensation payment saying that S604(2)(b) does not apply in their letter
We would maintain that the devaluation would be a part disposal and exempt as her property is now worth less due to a main road running close to it now.
Any advice on this and how we should reply back to Revenue as we have already stated that it was for the devaluation of her PPR but they have written to us again refusing to accept this?
Would you know of any case law on this?