CG67530 - Reliefs: charities: religious communities
The exemption which CG67501 tells you about, only applies to disposals of assets by a charity. Where a contemplative religious community such as a monastery or nunnery is not regarded as a charity, the exemption does not apply. In certain circumstances, however, a measure of relief is available under extra statutory concession (ESC) B10. CG64850 and CG65490-CG65491 explain the private residence relief available to religious communities.
Extra statutory concession B10
You will find the text of ESC B10 in leaflet IRI. Any claim for the benefit of the Concession should be referred to IR Charities. These instructions tell you how the Concession applies to Capital Gains Tax.
Excess allowable figures
ESC B10 allows communities to treat a proportion of their aggregate income as income of the individual monks or nuns. The amount varies from year to year. It is referred to as an ‘allowable figure’. Where the aggregate allowable figures for the whole community exceed its income, the concession allows the excess to be set against capital gains.
Excess allowable figures: set off
ESC B10 applies to Capital Gains Tax in cases where:
- the community is not capable of being regarded as a charity
and
- the aggregate of the allowable figure for each monk or nun, for the appropriate year of assessment, exceeds the community's income
then
- the excess may be set against any chargeable gains of the community for that year
Excess allowable figure: carry forward
Any excess allowable figure can be set against any gains in the year of assessment. If there are no gains in that year, or if the excess exceeds the gains, any unused excess may be carried forward and set against gains in subsequent years.