CGT Clearance for Solicitors: Letter of No Audit Guide
CGT clearance for solicitors in Ireland is required before sale proceeds can be released where Capital Gains Tax may arise.
When acting on a property sale, solicitors must ensure Revenue approval is obtained to confirm that any CGT due has been correctly declared and paid. Without this clearance, solicitors risk personal liability if funds are released prematurely.
This process is commonly referred to as obtaining a Letter of No Audit from Revenue. It applies in particular to non-resident vendors, but may also arise in other CGT-relevant transactions.
This guide explains:
- Common causes of delays and how to avoid them
- What CGT clearance means for solicitors
- When clearance is required
- How the Letter of No Audit process works
What Is the Letter of No Audit?
The Letter of No Audit is a form of CGT clearance that Revenue issues under Sections 1034, 1035, and 1043 of the Taxes Consolidation Act 1997.
It confirms that no CGT audit is being carried out and that Revenue accepts the capital gains position based on the documents provided.
When the vendor is non-resident, Revenue usually requires this clearance before allowing the solicitor to release funds.
Since the solicitor represents the vendor in Ireland, they can be held personally responsible if CGT is unpaid.
Although it is sometimes discussed alongside CG50 clearance, the Letter of No Audit is a separate process.
For some transactions, both may be relevant, but each follows different rules and forms.
Tip: If no gain arises from the sale, Revenue may decide that clearance is not required. However, this depends on the details and documents submitted.
Who Needs CGT Clearance for Solicitors in Ireland?
CGT clearance is typically required where a property sale involves:
- Non-resident individuals selling Irish property
- Non-resident companies disposing of Irish land or buildings
- Executors of estates where CGT may arise
- Trustees selling Irish property assets
If CGT applies and the vendor is not tax resident in Ireland, solicitors must withhold sale proceeds until Revenue clearance is confirmed.
Can a Solicitor Release Funds Without CGT Clearance?
No.
Where CGT clearance is required, a solicitor cannot legally release sale proceeds until Revenue approval is received or the statutory clearance period has passed without a query.
Releasing funds early may expose the solicitor to personal liability for unpaid CGT under Irish tax legislation.
How the CGT Clearance Process Works
Usually, an Irish accountant or tax agent manages the process on behalf of the vendor.
Step 1: Collect Client Documentation
The client provides key documents such as:
- Contract for sale
- Evidence of purchase price
- Details of property use (rental history, PPR relief, etc.)
- PPS number or application for one
- Declaration of non-residency
Step 2: Prepare the CGT Computation and Return
The accountant:
- Calculates the gain or loss
- Files the CGT return and pays tax (if applicable)
- Submits supporting documents to Revenue
Step 3: Submit the Clearance Request
Once the return is prepared, the representative submits the Letter of No Audit request to Revenue.
Step 4: Revenue Review and Response
Revenue reviews the submission. If everything is in order, the Letter of No Audit is issued.
If Revenue doesn’t raise any queries within 35 working days, deemed clearance applies. However, once a query is raised, that timeframe pauses until resolved.
Common CGT Clearance Issues That Delay Property Sales
Delays usually arise due to:
- Incomplete CGT calculations
- Missing or incorrect residency declarations
- Undeclared rental income
- Late CGT payments
- Clearance requests submitted too close to completion
Early involvement of a tax advisor significantly reduces these risks.
Turnaround Times and Common Delays
Revenue typically reviews clearance requests within 35 working days. Still, delays can happen due to:
- Missing or incomplete documents
- Missing PPS numbers or registration delays
- Errors in CGT calculations
- Undeclared historical rental income
- Secured charges where proceeds can’t cover CGT liability
In cases involving secured charges, if the proceeds are insufficient to pay CGT, the vendor must enter a phased payment arrangement with Revenue. Supporting evidence of that arrangement must be included in the clearance submission.
Additionally, when solicitors are not in possession of proceeds (e.g., voluntary disposals), Revenue may handle these differently on a case-by-case basis.
How I Help Solicitors
At Richard OShea Consultancy, I regularly assist solicitors and conveyancing teams across Ireland with non-resident CGT clearance.
I help by:
- Reviewing and compiling all required documents
- Registering for PPS numbers or tax references
- Preparing and filing CGT computations and returns
- Submitting clearance requests and managing Revenue correspondence
- Resolving follow-up queries quickly and accurately
This support ensures solicitors can release funds confidently, knowing the tax compliance side is fully covered. Learn more about our Capital Gains Tax advisory services for property transactions.
Final Notes and Resources
Understanding the Letter of No Audit process helps solicitors protect both themselves and their clients from unnecessary risks.
To learn more about the clearance process for non-resident property sales, visit my full article: Non-Resident CGT Clearance Ireland for Selling Irish Property
For hands-on assistance with non-resident property disposals, contact Richard OShea Consultancy, we help ensure every clearance request meets Revenue’s expectations
This article is intended for informational purposes only and should not be considered a replacement for professional advice. The author(s) disclaim any liability for actions taken or not taken based on the content of this document. It is recommended to seek tailored advice before making any decisions related to the topics discussed in this article.
