Dáil Éireann Debate, Wednesday - 9 April 2014
46. Deputy Paul J. Connaughton asked the Minister for Finance if land that had to be sold as part of a marriage settlement and which fetched just over €100,000 and was used to pay legal expenses and a marriage separation settlement is liable for capital gains tax; and if he will make a statement on the matter. [16936/14]
View answerI am informed by the Revenue Commissioners that capital gains tax legislation provides that certain transfers of assets between spouses are treated as giving rise to neither a gain nor a loss for capital gains tax purposes. Such transfers include transfers of assets from one spouse to the other under a separation agreement. However, there is no relief available where an asset is sold to a third party in the circumstances outlined in order to pay legal expenses and a marriage separation settlement. Accordingly, any chargeable gain arising on the sale of land in these circumstances would be liable to capital gains tax.
