Residential Property Tax - Clearance Certificates
Practitioners are reminded that a Clearance Certificate in respect of Residential Property Tax should be obtained from the Revenue Commissioners, Capital Taxes Branch when a property is being transferred from one spouse to the other.
Section 110A(9) of the Finance Act 1983 provides that any residential property tax and interest due and outstanding on the date of a transfer of property from one spouse to the other shall be and remain a charge on the property for twelve years.
Form RP54 is the application form for a Certificate of Discharge from Residential Property Tax (transfer of spouse) and provided that the tax has been discharged a Certificate will be issued promptly by the Revenue Commissioners that there is no outstanding charge for Residential Property Tax in relation to the transfer.
It should also be noted that if the couple own two or more properties which are available for their use, RPT Clearance Certificates should be obtained even if the value of each of the properties is below the market exemption limit.
Practitioners are also reminded that a Particulars Delivered stamp must be impressed on all Transfer/Conveyances/Assignments including voluntary dispositions in compliance with the 1995 stamp duty (P.D) Regulations however the regulations do not apply to any transaction creating a joint tenancy in the family home between spouses.