Taxes Consolidation Act 1997 section 1031N

Application of section 1031G for purposes of capital gains tax

Section 1031N allows Revenue to pursue a civil partner for capital gains tax owed but not paid by the other civil partner, by applying the income tax recovery provisions of section 1031G with any necessary modifications.

• Where a CGT assessment on a civil partner remains unpaid 28 days after it became due, Revenue may issue a demand notice to the other civil partner for the lesser of the tax that would have been payable under separate assessment or the amount of unpaid tax.
• The demand notice is treated as a separate assessment on the other civil partner for the purposes of collection, enforcement, bankruptcy priority, and appeal proceedings.
• Once the demand notice is issued, the tax up to the amount stated in the notice ceases to be payable by the first civil partner and is treated as if it had never been charged to him or her.
• If the demand notice amount is reduced on appeal or by the High Court, any overpayment is refunded to the other civil partner, and the reduction is recovered by increasing the original assessment on the first civil partner.