Residential Property Tax - Certificate of Clearance
While Residential Property Tax was abolished with effect from 5th April 1997, a Clearance Certificate procedure remains in place in relation to the sale of certain residential properties to assist the Revenue Commissioners to collect outstanding tax.
The value threshold relating to the Residential Property Tax Certificate of Clearance has been increased to €1,140,000 in accordance with the 'indexation' provisions in the legislation (Section 100 FA 1983,as amended).
The new threshold, which relates exclusively to the tax clearance procedure, applies to house sale contracts executed on or after 5th April 2004. From that date, where the sale consideration for residential property exceeds €1,140,000 the vendor must provide the purchaser with a Certificate from the Revenue Commissioners indicating that all Residential Property Tax due for years for which the tax was in operation has been paid. In the absence of the certificate the purchaser is obliged to withhold a specified amount from the sale consideration and remit same to the Revenue Commissioners (Section 110A FA 1983, as amended).