I am informed by the Revenue Commissioners that it is not possible to reply definitively to your query without exact details of the condition to which reference is made. The rate of capital gains tax is determined by the time of disposal. If the acquisition of the land is by way of conditional contract (as opposed to compulsory purchase), Section 542(1)(b) of the Taxes Consolidation Act 1997 provides that the time of disposal is the time the condition is satisfied. In this regard the type of condition in question is a condition precedent that, if not satisfied, results in no disposal/acquisition. A typical example would be a contract that is subject to planning permission being obtained by the purchaser. If the disposal /acquisition takes place otherwise than under a contract, by an authority possessing compulsory purchase powers, Section 542(1)(c) provides the time at which the disposal is made is the time at which the compensation is agreed or otherwise determined or, if earlier, the time at which the authority enters on the land under its powers.
