Revenue clearance (Section 49 CATCA): plain-English guide for Irish probate
A formal Revenue letter confirming that all CAT and income tax obligations of the deceased and the estate have been settled, generally requested by the executor before final distribution.
What it means, in plain English
A Revenue clearance letter is a formal confirmation from Revenue that all tax obligations of the deceased and the estate have been met. Under Section 49 of the Capital Acquisitions Tax Consolidation Act 2003, executors can request clearance before final distribution, giving them protection against later personal liability for tax that turns out to be owing.
Revenue clearance (Section 49 CATCA) in Irish probate practice
The clearance process has two elements. First, the deceased's personal tax affairs up to the date of death must be settled, usually by filing a final income tax return for the year of death and paying any balance. Second, all CAT liabilities arising from the estate, including any IT38 returns from beneficiaries, must be filed and paid. When these are in order, the executor writes to Revenue providing details of the estate, the SA2 reference, the IT38 references, and the proposed final distribution, and asks for formal clearance. The clearance letter does not guarantee that every tax point has been correctly handled, but it does protect the executor from personal liability for any unpaid CAT that emerges later, provided the executor has made full and honest disclosure. Without clearance, if an executor distributes the estate and Revenue later finds additional CAT owing, the executor can be personally pursued for it, particularly if the tax is irrecoverable from the beneficiaries. In complex estates, or where the executor is not a beneficiary, clearance is strongly advisable. For simple estates fully distributed within family and well within thresholds, many executors proceed without it.
Worked example
Roisin is executor of her aunt's estate. She has settled all debts, filed the deceased's final income tax return, helped each of the four beneficiaries file their IT38 returns, and paid the collected CAT from the estate funds before distribution. Before she distributes the final balance, she writes to Revenue with full details and requests Section 49 clearance. Revenue reviews the filings and issues the clearance letter within about 8 to 10 weeks. With the letter in hand, Roisin distributes the final amounts to the beneficiaries and closes the estate accounts, protected against any later claim for tax she could not have known about.
The statutory position
Section 49 of the Capital Acquisitions Tax Consolidation Act 2003 provides for Revenue clearance. Section 48 sets the executor's information-return obligations. Revenue's published guidance on Section 49 clearance letters sets out the procedural detail, including the information required and the typical turnaround times.
Related terms in this glossary
Related reading
How ProbatePack handles Revenue clearance (Section 49 CATCA)
Everything in the Preparation Pack plus the full inheritance-tax layer. CAT calculator for each beneficiary, individual IT38 drafts, Dwelling House Exemption assessment, Section 72 check, Agricultural and Business Relief assessments where applicable, and the Revenue clearance letter. For estates that will cross the Group A threshold.