In appeal case 116TACD2022, the appellant disposed of farmland under a compulsory purchaser order (CPO) and received €2,850,000 in respect of which was subject to CGT.
He claimed relief under s 536 for reinvesting €1,368,040 of the proceeds as follows:
Reinvestment costs €156,250
Permanent disturbance €61,500
Temporary disturbance €25,000
Goodwill €148,650
Costs €86,960
Injuries Affection €538,000 (house €64,000, Agricultural Land €192,000 and plot 2 (larger area) €282,000)
Severance €465,600
Total €1, 368,040
Revenue argued the sums received and subdivided are not a “capital sum…derived from an asset” within s 535(2)(a) and s 536 did not apply. Even if s 536 did apply, relief was not applied for within the four year time limit.
The Commissioner found that the Appellant had not discharged the burden of proof that a valid claim for a repayment of tax was made in accordance with the TCA 1997 s 865.