Exemption of certain receipts

Income or gains from the following sources are exempt from Capital Acquisitions Tax (CAT):

• compensation or damages awarded for injury or death
• winnings from betting, lotteries, sweepstakes or games with prizes
• payments given to reduce debt if you are bankrupt or near-bankrupt
• an agreement by a creditor to reduce a debt from a person who is bankrupt
• a markdown of a debt under a Debt Relief Notice or Personal Insolvency Arrangement (PIA).