Taxes Consolidation Act 1997 section 828

Capital gains tax: double taxation relief

Section 828 extends the double taxation relief framework (section 826 and Schedule 24) to capital gains tax, enabling the Government to make arrangements with other countries to relieve double taxation of capital gains, and provides a unilateral deduction for foreign CGT where treaty credit relief is not available.

• The double taxation relief provisions in section 826 and Schedule 24, which are drafted for income tax purposes, are adapted for CGT by substituting references to chargeable gains and capital gains tax for references to income and income tax.
• Where foreign CGT qualifies for credit relief under these provisions, the credit may only be set against Irish CGT — any excess foreign CGT cannot be offset against Irish income tax or corporation tax.
• The authorised disclosure of taxpayer information to foreign revenue authorities under section 826(7) applies equally in the context of capital gains tax.
• Foreign CGT borne on a disposal that cannot be relieved by way of treaty credit is instead allowable as a deduction in computing the chargeable gain on that disposal for Irish CGT purposes.