Exemption for Charities
Legislation - Section 76, Capital Acquisitions Tax Consolidation Act 2003.
A benefit taken for public or charitable purposes is exempt from Capital Acquisitions Tax once the Revenue Commissioners are satisfied that it has been or will be applied to purposes which, in accordance with the law of the State, are public or charitable.
Regardless of the residence of the charity, an exemption will be given provided the charity is recognised as such by the law of the State.
The property can be applied in or outside of the State.
Benefits received by a person from a charity are also exempt e.g. the recipient of a cholarship from an educational trust.
The Act does not provide any definition of "charitable purposes". However, general law groups charitable purposes into four categories viz:
- the relief of poverty;
- the advancement of education;
- the advancement of religion;
- other purposes beneficial to the community, not falling within the other three categories.