Taxes Consolidation Act 1997 section 1029

Application of section 1022 for purposes of capital gains tax

Section 1029 applies the provisions of section 1022 (collection of unpaid tax from a spouse) to capital gains tax, allowing Revenue to pursue a married woman for CGT attributable to her chargeable gains where the tax assessed on her husband remains unpaid.

• Where CGT assessed on a married man remains unpaid 28 days after the due date, Revenue may issue a demand notice to his wife for the lesser of the tax attributable to her gains under separate assessment or the total unpaid tax.
• The demand notice is treated as a separate assessment on the wife for the purposes of collection and enforcement, bankruptcy priority, and appeals.
• Once the demand notice is issued, the tax up to the amount demanded ceases to be payable by the husband and is treated as if it had never been charged to him.
• If the husband dies, the wife (or her executors) may disclaim responsibility for her portion of a joint CGT liability within two months of the grant of probate or letters of administration.