Finance Act 2011 FA Act 2011 reduced the tax-free thresholds. It reduced the Group A threshold to €332,084, the Group B threshold to €33,208; and the the Group C threshold to €16,604. The filing and payment date in respect of benefits of the period, 1 January to 31 August was amended from 31 October […]
Exemptions: There is n annual exemption of €3,000 for gifts taken by any recipient from any disponer in any year. It applies to each calendar year. The relief is available as an exemption where the amount of the gift exceeds €3,000. Therefore, if €6,000 given, first €3,000 is deducted. The exemption is per disponer. A […]
There are a number of CAT reliefs. This section looks at two major reliefs namely that applicable to agricultural property and that applicable to business property. Where reliefs are available they have the effect of reducing the rate of CAT to an effective rate of 3.3 percent rate. In each case, the value of property […]
Business relief has the effect of reducing the value of the certain qualifying trading business assets by 90 percent for CAT purposes. The effect of this 90 percent reduction is that a significant amount of property could qualify for exemption from CAT. Where tax applies the rate is effectively reduced from 33 percent to 3.3 […]
Since the introduction of capital acquisitions tax, a relatively generous agricultural property relief has been available. The primary purpose has been to alleviate the inheritance tax burden that might otherwise apply to the inheritance of a family farm. However, the relief is available regardless of whether the recipient is a full-time farmer regardless of form […]
Gifts and Inheritances A gift arises where in consequence of any disposition (transfer of an asset), a person becomes beneficially entitled in possession, otherwise on death to any benefit other than for full consideration in money or monies worth paid by that person. A disposition is a very widely defined. It includes any act or […]
Discretionary Trust Where assets are subject to a discretionary trust as defined, there is a once-off 6 percent charge and an annual charge after that. Tax applied on the date when assets become subject to a discretionary tax [in the sense defined) at the date of death of the person creating the will/trust or when, if […]
The valuation date is important in a number of contexts with gift and inheritance tax. The concept can be ambiguous particularly in the case of inheritances. It is generally clearer in the case of gifts. The valuation date of a gift is generally the date of the transfer of assets. In the case of appointment […]
The system of collection of capital acquisitions tax was radically reformed in 2010. In broad terms, it has moved to an annual tax, largely returned by way of self-assessment through the Revenue Online Service. Consequential on the modernisation of CAT in 2010. The changes include clarification that the 4-month period of grace continues to apply to Discretionary Trust […]
The Revenue have the usual methods and means of enforcement available for collection of inheritance tax. There is a surcharge on a person accountable for CAT who undervalues an asset Where the value is less than 60% of the value later ascertained. The surcharge is additional to CAT and interest due. The surcharge is 10% […]
Calculation of Capital Acquisitions Tax Capital Acquisitions Tax whether gift or inheritance tax is paid on the taxable value of the gift or inheritance. The taxable value is the market value reduced by deductible costs liabilities and expenses and by consideration paid in money or money’s worth. The incumbrance free value is the market value […]
Various Controls A certificate is required to register title to which a person becomes entitled by reason of adverse possession. This must be produced to the Land Registry on an application for first registration. Where monies are held in a joint account of more than €50,000, monies may not be paid out of from the […]
Unilateral Relief Unilateral relief may be granted where an inheritance or gift is subject to Irish CAT and is also subject to a foreign capital tax equivalent such as estate duty, inheritance tax or capital transfer tax. The relief may apply where the tax arises on the same event and gives rise to tax in […]
Citation and Renunciation If the person named as executor or the next person entitled does not and will not take up his office there is a procedure by which a document called citation issues from the Probate Office requiring him to take up or refuse the offer within a specified period. If he does not […]
Nature of Gift A gift is a transfer of property gratuitously. It is usually contrasted with a bequest or legacy under a will in that the donor is still alive. In certain cases where the donor makes, transfers property in expectation of death, it is treated for tax and certain other purposes as given on […]
Setting Aside a Gift The presumption is that gifts may not be revoked once given. A gift may be revocable by its terms. Gifts may be set aside if induced by fraud, mistake or misrepresentation or undue influence. There are many cases in Ireland over the years where gifts have been set aside when made […]
Delivery and Goods A gift of goods is incomplete without delivery. Delivery is the mechanism by which goods are passed. Physical delivery may not be required if constructive delivery takes place. Where goods cannot be physically delivered because of their bulk, they maybe constructively delivered by means. Delivery of a key or equivalent. A part […]
Companies A limited company did not have power to gratuitously transfer assets. There was a presumption that it did not have such power where it is incorporated for the purpose of a trading business which does not contemplate gift. There was a tendency to interpret objects and Memorandum of a company as being for commercial […]
Gift Subject to Burden Where a gift is made of property subject to a charge and there is no reference to the charge, then if the donor created the charge and is liable, the donee cannot be called to pay any part of it. If the donor took the property subject to the charge, whether […]
Right of Children Children do not have an automatic right to benefit. A deceased may choose not to give particular children or indeed any of his children, any benefit at all. Even where the spouse has not survived, it does not follow that his children have an entitlement to any share. The Courts will only […]