Revenue eBrief No. 047/24

20 February 2024

Capital Acquisitions Tax Manual - Part 23 Exemptions from Capital Acquisitions Tax (CAT)

Capital Acquisitions Tax Manual Part 23  provides an overview of the various exemptions from CAT.

The manual has been updated as follows:

Paragraph 23.2 – Exemption for Small Gifts is expanded to clarify that the exemption is available in circumstances where a gift becomes an inheritance by reason of the death of the disponer within 2 years of the date of the gift.

Paragraph 23.4 - Exemption for certain policies of insurance is amended to follow the structure of the legislation.

Paragraph 23.8- Exemption of heritage property is updated to clarify that a claim must be made to Revenue to avail of the exemption in respect of houses and gardens in the State not held for the purposes of trading.

Paragraph 23.9 - Exemption of certain inheritances taken by parents is updated to clarify that payments made for the ‘support, maintenance or education’ of a minor child are not gifts or inheritances for CAT purposes under section 82(2) CATCA 2003 and are therefore not a “non-exempt gift” for the purposes of section 79 CATCA 2003. The existing example has been updated.

Paragraph 23.11 – Exemption of certain securities is expanded to give further detail on the qualifying conditions for the exemption.

Paragraph 23.12 - Exemption of certain receipts is amended to follow the structure of the legislation. 

Paragraph 23.15 - Exemption relating to retirement benefits has been updated to include a reference to Pan-European Pension Products (PEPPs).