Completing your gift or inheritance tax return (IT38)

Powers of revocation

A power of revocation is where a person gives a gift such as property, but has the right to take it back. No Capital Acquisitions Tax (CAT) is due in this situation.

Tax becomes payable when the person who gave the gift either:

  • gives up this right of revocation and it becomes a full gift for CAT purposes
  • or
  • dies and the gift becomes an inheritance.

If you had free use of the property during this time, then you must pay tax on that benefit. Calculate the tax as if you had received rent (due on 31 December) for each year you received the benefit. You can base the rent for that type of property in that area.

Next: What is a disclaimer of benefit?