CGT Clearance for Solicitors: Letter of No Audit Guide

When you act for a non-resident client selling Irish property, you need to understand the Capital Gains Tax (CGT) clearance process, also known as the Letter of No Audit.
This clearance confirms that Revenue is satisfied with the client’s CGT position before any sale proceeds are released.

If clearance isn’t obtained, solicitors may face personal liability under Irish tax law.
This guide explains what the Letter of No Audit is, why it matters, and how to manage the process effectively.

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.

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.

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.

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 – Letter of No Audit

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.