Credits you can claim against Capital Acquisitions Tax (CAT)

Unilateral relief

Unilateral relief is relief from double taxation for property in states other than the UK and the USA. It can only apply where there is no Double Taxation Treaty in place between countries. Revenue may allow a credit against CAT payable in Ireland where tax was already paid in another country on that same property.

The country which charges tax on the foreign property will grant the credit. The credit granted is the lesser of:

  • the CAT payable on the property situated abroad
  • the foreign tax on the foreign property.

The credit given cannot be greater than the amount of Irish tax paid on the property.

In this case, no credit is available on the foreign property. This is because the amount of tax paid in Country B is greater than that in Ireland. 

Next: Prior tax on the same event