(iii) duly paying the excess, if any, of the amount of the tax referred to in subsection (2)(b), or in paragraph (a)(i), over the nominal face value of the securities tendered in payment of the tax in accordance with subparagraph (i).
\n
(4)Subsection (2) applies to a charge for tax arising by reason of section 15 and to any other gift where— (a) the aggregate of the taxable values of all taxable gifts taken by the donee on or after 5 December 1991, which have the same group threshold (as defined in Schedule 2 ) as that other gift, exceeds an amount which is 80 per cent of the threshold amount (as defined in Schedule 2 ) which applies in the computation of tax on that aggregate, or (b) the donee or, in a case to which section 32
\n
(2)applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return, and for the purposes of this subsection, a reference to a gift includes a reference to a part of a gift or to a part of a taxable gift, as the case may be.
\n
(5)For the purposes of this section, the relevant date shall be— (a) the valuation date, or (b) where the donee or, in a case to which section 32
\n
(2)applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return, the date of the notice.
\n
(6)Any person who is accountable for the payment of tax by virtue of subsection (2) or (9) of section 45 shall, if that person is required by notice in writing by the Commissioners to do so, comply with paragraphs (a), (b) and (c) of subsection (2) (as if that person were a person primarily accountable for the payment of tax by virtue of section 45
\n
(1)) within such time, not being less than 30 days, as may be specified in the notice.
\n
(7)(a) Any accountable person shall, if that person is so required by the Commissioners by notice in writing, deliver and verify to the Commissioners within such time, not being less than 30 days, as may be specified in the notice— (i) a statement (where appropriate, on a form provided, or approved of, by them) of such particulars relating to any property, and (ii) such evidence as they require, as may, in their opinion, be relevant to the assessment of tax in respect of the gift. (b) The Commissioners may authorise a person to inspect— (i) any property comprised in a gift, or (ii) any books, records, accounts or other documents, in whatever form they are stored, maintained or preserved, relating to any property as may in their opinion be relevant to the assessment of tax in respect of a gift, and the person having the custody or possession of that property, or of those books, records, accounts or documents, shall permit the person so authorised to make that inspection at such reasonable times as the Commissioners consider necessary.
\n
(8)The Commissioners may by notice in writing require any accountable person to— (a) deliver to them within such time, not being less than 30 days, as may be specified in the notice, an additional return, if it appears to the Commissioners that a return made by that accountable person is defective in a material respect by reason of anything contained in or omitted from it, (b) notwithstanding section 49 , make on that additional return an assessment of such amended amount of tax as, to the best of that person's knowledge, information and belief, ought to be charged, levied and paid on the relevant gift, and (c) duly pay the outstanding tax, if any, for which that person is accountable in respect of that gift, and (i) the requirements of subparagraphs (ii), (iii) and (iv) of subsection (2)(a) shall apply to such additional return required by virtue of paragraph (a), and (ii) subsection (3) shall, with any necessary modifications, apply to any payment required by virtue of paragraph (c).
\n
(9)Where any accountable person who has delivered a return or an additional return is aware or becomes aware at any time that the return or additional return is defective in a material respect by reason of anything contained in or omitted from it, that person shall, without application from the Commissioners and within 3 months of so becoming aware— (a) deliver to them an additional return, (b) notwithstanding section 49 , make on that additional return an assessment of such amended amount of tax as, to the best of that person's knowledge, information and belief, ought to be charged, levied and paid on the relevant gift, and (c) duly pay the outstanding tax, if any, for which that person is accountable in respect of that gift, and (i) the requirements of subparagraphs (ii), (iii) and (iv) of subsection (2)(a) shall apply to such additional return required by virtue of paragraph (a), and (ii) subsection (3) shall, with any necessary modifications, apply to any payment required by virtue of paragraph (c).
\n
(10)Any amount of tax payable by an accountable person in respect of an assessment of tax made by that accountable person on a return delivered by that accountable person (other than an amount of that tax payable by the transfer of securities to the Minister for Finance under section 56 ) shall accompany the return and be paid to the Collector.
\n
(11)Any assessment or payment of tax made under this section shall include interest on tax payable in accordance with section 51 .
\n
(12)The Commissioners may by notice in writing require any person to deliver to them within such time, not being less than 30 days, as may be specified in the notice, a full and true return showing details of every taxable gift (including the property comprised in such gift) taken by that person during the period specified in the notice or, as the case may be, indicating that that person has taken no taxable gift during that period.
\n
(13)As respects a taxable gift to which this subsection applies, any accountable person who is a disponer shall within 4 months of the valuation date deliver to the Commissioners a full and true return— (a) of all the property comprised in such gift on the valuation date, (b) of an estimate of the market value of such property on the valuation date, and (c) of such particulars as may be relevant to the assessment of tax in respect of the gift.
\n
(14)Subsection (13) applies to a taxable gift, in the case where— (a) the taxable value of the taxable gift exceeds an amount which is 80 per cent of the group threshold (as defined in Schedule 2 ) which applies in relation to that gift for the purposes of the computation of the tax on that gift, (b) the taxable value of the taxable gift taken by the donee from the disponer increases the total taxable value of all taxable gifts and taxable inheritances taken on or after 5 December 1991 by the donee from the disponer from an amount less than or equal to the amount specified in paragraph (a) to an amount which exceeds the amount so specified, or (c) the total taxable value of all taxable gifts and taxable inheritances taken on or after 5 December 1991 by the donee from the disponer exceeds the amount specified in paragraph (a) and the donee takes a further taxable gift from the disponer.
\n
(15)Where, under or in consequence of any disposition made by a person who is living and domiciled in the State at the date of the disposition, property becomes subject to a discretionary trust, the disponer shall within 4 months of the date of the disposition deliver to the Commissioners a full and true return of— (a) the terms of the discretionary trust, (b) the names and addresses of the trustees and objects of the discretionary trust, and (c) an estimate of the market value at the date of the disposition of the property becoming subject to the discretionary trust.
\n
Signing of returns, etc. [CATA 1976 s37]
\n
Section 47
\n
47.—(1) A return or an additional return required to be delivered under this Act shall be signed by the accountable person who delivers the return or the additional return and shall include a declaration by the person signing it that the return or additional return is, to the best of that person's knowledge, information and belief, correct and complete.
\n
(2)The Commissioners may require a return or an additional return to be made on oath.
\n
(3)The Commissioners may, if they so think fit, accept a return or an additional return under this Act that has not been signed in accordance with this section and such return or additional return is deemed to be duly delivered to the Commissioners under this Act.
\n
(4)(a) A return or additional return delivered under this Act shall— (i) be made on a form provided, or approved of, by the Commissioners, or (ii) except in a case to which subsection (2) relates but in a case where subsection (3) applies, be in a form approved of by the Commissioners and delivered by any electronic, photographic or other process approved of by them and in circumstances where the use of such process has been agreed by them and subject to such conditions as they may impose. (b) An affidavit, additional affidavit, account or additional account, delivered under this Act, shall be made on a form provided, or approved of, by the Commissioners.
\n
(5)Any oath or affidavit to be made for the purposes of this Act may be made— (a) before the Commissioners, (b) before any officer or person authorised by the Commissioners in that behalf, (c) before any Commissioner for Oaths or any Peace Commissioner or Notary Public in the State, or (d) at any place outside the State, before any person duly authorised to administer oaths in that place.
\n
Affidavits and accounts. [CATA 1976 s38]
\n
Section 48
\n
48.—(1) In this section, “Inland Revenue affidavit” has the meaning assigned to it by section 22
\n
(1)(n) of the Finance Act 1894 .
\n
(2)The Inland Revenue affidavit required for an application for probate or letters of administration shall extend to the verification of a statement of the following particulars: (a) details of all property in respect of which the grant of probate or administration is required and, in the case of a deceased person who died domiciled in the State, details of all property, wherever situate, the beneficial ownership of which, on that person's death, is affected— (i) by that person's will, (ii) by the rules for distribution on intestacy, or (iii) by Part IX or section 56 of the Succession Act 1965 ; (b) details of any property which was the subject matter of a disposition inter vivos made by the deceased person where the date of the disposition was within 2 years prior to that person's death or of a donatio mortis causa; (c) details of the inheritances arising under the will or intestacy of the deceased person or under Part IX or section 56 of the Succession Act 1965 , or under the analogous law of another territory, together with a copy of any such will; (d) particulars of the inheritances (including the property comprised in such inheritances) other than those referred to in paragraphs (b) and (c), arising on the death of the deceased person; (e) the name and address of each person who takes an inheritance on the death of the deceased person and that person's relationship to the disponer; and (f) such other particulars as the Commissioners may require for the purposes of this Act.
\n
(3)Where the interest of the deceased person was a limited interest and that person died on or after the date of the passing of this Act, the trustee of the property in which the limited interest subsisted shall deliver an account which shall contain the following particulars— (a) details of each inheritance arising on the death of the deceased person under the disposition under which the limited interest of the deceased person arose, including the name and address of each person taking such inheritance and that person's relationship to the disponer, and (b) such other particulars as the Commissioners may require for the purposes of this Act.
\n
(4)If at any time it shall appear that any material error or omission was made in an affidavit or account referred to in this section, the persons liable to deliver an affidavit or account shall be liable to deliver an additional affidavit or an additional account, correcting the error or omission.
\n
Assessment of tax. [CATA 1976 s39; FA 1989 s75]
\n
Section 49
\n
49.—(1) Subject to section 46 , assessments of tax under this Act shall be made by the Commissioners.
\n
(2)If at any time it appears that for any reason an assessment was incorrect, the Commissioners may make a correcting assessment, which shall be substituted for the first-mentioned assessment.
\n
(3)If at any time it appears that for any reason too little tax was assessed, the Commissioners may make an additional assessment.
\n
(4)The Commissioners may serve notice in writing of the assessment of tax on any accountable person or, at the request of an accountable person, on that accountable person's agent, or on the personal representative of an accountable person if that person is dead.
\n
(5)Where the place of residence of the accountable person or of that accountable person's personal representative is not known to the Commissioners they may publish in Iris Oifigiúil a notice of the making of the assessment with such particulars of that assessment as they shall think proper and on the publication of the notice in Iris Oifigiúil the accountable person or that accountable person's personal representative, as the case may be, is deemed to have been served with the notice of the assessment on the date of such publication.
\n
(6)Any assessment, correcting assessment or additional assessment under this section may be made by the Commissioners from any return or additional return delivered under section 46 or from any other information in the possession of the Commissioners or from any one or more of these sources.
\n
(7)The Commissioners, in making any assessment, correcting assessment or additional assessment, otherwise than from a return or an additional return which is satisfactory to them, shall make an assessment of such amount of tax as, to the best of their knowledge, information (including information received from a member of the Garda Síochána) and belief, ought to be charged, levied and paid.
\n
(8)Nothing in section 46 shall preclude the Commissioners from making an assessment of tax, a correcting assessment of tax, or an additional assessment of tax, under the provisions of this section.
\n
Computation of tax. [CATA 1976 s40 (part)]
\n
Section 50
\n
50.—Subject to sections 18 and 23, the amount of tax payable shall be computed in accordance with Schedule 2.
\n
PART 7
\n
Payment and Recovery of Tax, Interest and Penalties Payment of tax and interest on tax. [CATA 1976 s41(1), (2), (2A) and (3) to (6) and (8); FA 1989 s76(2)]
\n
Section 51
\n
51.—(1) Tax shall be due and payable on the valuation date.
\n
(2)Simple interest at the rate of 0.0322 per cent per day or part of a day, without deduction of income tax, is payable on the tax from the valuation date to the date of payment of the tax and is chargeable and recoverable in the same manner as if it were part of the tax.
\n
(3)Notwithstanding subsection (2), interest is not payable on the tax— (a) to the extent to which section 89
\n
(4)(a) applies, for the duration of the period from the valuation date to the date the agricultural value ceases to be applicable, (b) to the extent to which section 77
\n
(3)and (4) applies, for the duration of the period from the valuation date to the date the exemption ceases to apply, (c) to the extent to which section 101
\n
(2)applies, for the duration of the period from the valuation date to the date the reduction which would otherwise fall to be made under section 92 ceases to be applicable, (d) to the extent to which section 78
\n
(6)applies, for the duration of the period from the valuation date to the date the exemption ceases to apply, (e) to the extent to which section 86
\n
(6)or (7) applies, for the duration of the period from the valuation date to the date the exemption ceases to apply.
\n
(4)Notwithstanding subsection (2), interest is not payable on tax which is paid within 3 months of the valuation date, and where tax and interest, if any, on that tax is paid within 30 days of the date of assessment of that tax, interest shall not run on that tax for the period of 30 days from the date of the assessment or any part of that period, but, in relation to an assessment of tax made by an accountable person on a return delivered by that accountable person, interest is not payable on tax which is paid within 4 months of the valuation date.
\n
(5)A payment on account of tax shall be applied— (a) if there is interest due on tax at the date of the payment, to the discharge, so far as may be, of the interest so due, and (b) if there is any balance of that payment remaining, to the discharge of so much tax as is equal to that balance, and a payment by an accountable person of tax is treated as a payment on account of tax for the purposes of this section, notwithstanding that the payment may be conditional or that the assessment of tax is incorrect.
\n
(6)Subject to subsections (2), (4) and (5), payments on account may be made at any time, and when a payment on account is made, interest is not chargeable in respect of any period subsequent to the date of such payment on so much of the payment on account as is to be applied in discharge of the tax.
\n
(7)In the case of a gift which becomes an inheritance by reason of its being taken under a disposition where the date of the disposition is within 2 years prior to the death of the disponer, this section has effect as if the references to the valuation date in subsections (1), (2), (3) and (4) were references to the date of death of the disponer.
\n
(8)Where the value of a limited interest is to be ascertained in accordance with rule 8 of Schedule 1 as if it were a series of absolute interests, this section has effect, in relation to each of those absolute interests, as if the references to the valuation date in subsections (1), (2), (3) and (4) were references to the date of the taking of that absolute interest.
\n
Set-off of gift tax paid in respect of an inheritance. [CATA 1976 s42]
\n
Section 52
\n
52.—Where an amount has been paid in respect of gift tax (or interest on such gift tax) on a gift which, by reason of the death of the disponer within 2 years after the date of the disposition under which the gift was taken, becomes an inheritance in respect of which inheritance tax is payable, the amount so paid is treated as a payment on account of the inheritance tax.
\n
Surcharge for undervaluation of property. [FA 1989 s79]
\n
Section 53
\n
53.—(1) In this section “ascertained value” means the market value subject to the right of appeal under section 66 or section 67 .
\n
(2)Where— (a) an accountable person delivers a return, and (b) the estimate of the market value of any asset comprised in a gift or inheritance and included in that return, when expressed as a percentage of the ascertained value of that asset, is within any of the percentages specified in column (1) of the Table to this section, then the amount of tax attributable to the property which is that asset is increased by a sum (in this section referred to as the “surcharge”) equal to the corresponding percentage, set out in column (2) of that Table opposite the relevant percentage in column (1), of that amount of tax.
\n
(3)Interest is payable under section 51 on any surcharge as if the surcharge were tax, and the surcharge and any interest on that surcharge is chargeable and recoverable as if the surcharge and that interest were part of the tax.
\n
(4)Any person aggrieved by the imposition on that person of a surcharge under this section in respect of any asset may, within 30 days of the notification to that person of the amount of such surcharge, appeal to the Appeal Commissioners against the imposition of such surcharge on the grounds that, having regard to all the circumstances, there were sufficient grounds on which that person might reasonably have based that person's estimate of the market value of the asset.
\n
(5)The Appeal Commissioners shall hear and determine an appeal to them under subsection (4) as if it were an appeal to them against an assessment to tax, and the provisions of section 67 relating to an appeal or to the rehearing of an appeal or to the statement of a case for the opinion of the High Court on a point of law shall, with any necessary modifications, apply accordingly.
\n
TABLE Estimate of the market value of the asset in the return, expressed as a percentage of the ascertained value of that asset Surcharge
\n
(1)
\n
(2)Equal to or greater than 0 per cent but less than 40 per cent 30 per cent Equal to or greater than 40 per cent but less than 50 per cent 20 per cent Equal to or greater than 50 per cent but less than 67 per cent 10 per cent Payment of tax by instalments. [CATA 1976 s43]
\n
Section 54
\n
54.—(1) Subject to the payment of interest in accordance with section 51 and to the provisions of this section, the tax due and payable in respect of a taxable gift or a taxable inheritance may, at the option of the person delivering the return or additional return, be paid by 5 equal yearly instalments, the first of which is due at the expiration of 12 months from the date on which the tax became due and payable and the interest on the unpaid tax shall be added to each instalment and shall be paid at the same time as such instalment.
\n
(2)An instalment not due may be paid at any time before it is due.
\n
(3)In any case where and to the extent that the property of which the taxable gift or taxable inheritance consists is sold or compulsorily acquired, all unpaid instalments shall, unless the interest of the donee or successor is a limited interest, be paid on completion of the sale or compulsory acquisition and, if not so paid, shall be tax in arrear.
\n
(4)This section shall not apply in any case where and to the extent to which a taxable gift or a taxable inheritance consists of personal property in which the donee, or the successor, or the transferee referred to in section 32
\n
(2), as the case may be, takes an absolute interest.
\n
(5)In any case where the interest taken by a donee or a successor is an interest limited to cease on that person's death, and that person's death occurs before all the instalments of the tax in respect of the taxable gift or taxable inheritance would have fallen due if such tax were being paid by instalments, any instalment of such tax which would not have fallen due prior to the date of the death of that donee or successor shall cease to be payable, and the payment, if made, of any such last-mentioned instalment is treated as an overpayment of tax for the purposes of section 57 .
\n
Payment of tax on certain assets by instalments. [FA 1995 s164]
\n
Section 55
\n
55.—(1) In this section— “agricultural property” has the meaning assigned to it by section 89 ; “relevant business property” has the same meaning as it has in section 93 , other than shares in or securities of a company (being shares or securities quoted on a recognised stock exchange) and without regard to sections 94 and 100
\n
(4).
\n
(2)Where the whole or part of the tax which is due and payable in respect of a taxable gift or taxable inheritance is attributable to either or both agricultural property and relevant business property— (a) section 54 shall apply to that whole or part of the tax notwithstanding subsection (3) or (4) of that section but where all or any part of that agricultural property or relevant business property, or any property which directly or indirectly replaces such property, is sold or compulsorily acquired and, by virtue of subsection (4) of section 89 or section 101 , that sale or compulsory acquisition causes the taxable value of such a taxable gift or taxable inheritance to be increased, or would cause such increase if subsection (2) of section 89 or section 92 applied, all unpaid instalments referable to the property sold or compulsorily acquired shall, unless the interest of the donee or successor is a limited interest, be paid on completion of that sale or compulsory acquisition and, if not so paid, shall be tax in arrear, and (b) notwithstanding subsection (2) of section 51 the rate at which interest is payable on that whole or part of the tax is 0.75 per cent or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month instead of at the rate specified in that section and that section shall apply as regards that whole or part of the tax as if the rate so payable were substituted for the rate specified in that section, but the rate at which interest is payable on any overdue instalment of that whole or part of the tax, or on such part of the tax as would represent any such overdue instalment if that whole or part of the tax were being paid by instalments, shall continue to be at the rate specified in section 51 .
\n
(3)For the purposes of this section reference to an overdue instalment in paragraph (b) of subsection (2) is a reference to an instalment which is overdue for the purposes of section 54 (as it applies to this section) or for the purposes of paragraph (a) of subsection (2).
\n
(4)For the purposes of this section the value of a business or of an interest in a business shall be taken to be its net value ascertained in accordance with section 98 .
\n
(5)This section shall not apply in relation to an inheritance taken by a discretionary trust by virtue of section 15
\n
(1)or section 20
\n
(1).
\n
(6)Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done under that regulation.
\n
Payment of inheritance tax by transfer of securities. [CATA 1976 s45]
\n
Section 56
\n
Section 22
\n
of the Finance Act 1954 (which relates to the payment of death duties by the transfer of securities to the Minister for Finance) and the regulations made under that Act shall apply, with any necessary modifications, to the payment of inheritance tax by the transfer of securities to the Minister for Finance, as they apply to the payment of death duties by the transfer of securities to the Minister for Finance.
\n
Overpayment of tax. [CATA 1976 s46]
\n
Section 57
\n
57.—(1) Where, on application to the Commissioners for relief under this section, it is proved to their satisfaction that an amount has been paid in excess of the liability for tax or for interest on tax, they shall give relief by means of repayment of the excess or otherwise as is reasonable and just; and any such repayment shall carry simple interest (not exceeding the amount of such excess), at the rate of 0.0161 per cent or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each day or part of a day from the date on which the payment was made, and income tax is not to be deductible on payment of interest under this section and such interest is not to be reckoned in computing income for the purposes of the Tax Acts.
\n
(2)Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done under that regulation.
\n
Penalties. [CATA 1976 s63]
\n
Section 58
\n
58.—(1) (a) Any person who contravenes or fails to comply with any requirement or provision under section 46 shall be liable to a penalty of €2,535. (b) Where the contravention or failure referred to in paragraph (a) continues after judgment has been given by the court before which proceedings for the penalty have been commenced, the person concerned shall be liable to a further penalty of €30 for each day on which the contravention or failure so continues.
\n
(2)Where, under, or for the purposes of, any of the provisions of this Act, a person is authorised to inspect any property for the purpose of reporting to the Commissioners the market value of that property and the person having custody or possession of that property prevents such inspection or obstructs the person so authorised in the performance of that person's functions in relation to the inspection, the person so having custody or possession is liable to a penalty of €1,265.
\n
(3)Where an accountable person fraudulently or negligently— (a) delivers any incorrect return or additional return, (b) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any property comprised in any disposition, (c) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any claim for any allowance, deduction, exemption or relief, or (d) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any other matter, on the basis of which the amount of tax assessable in respect of a taxable gift or taxable inheritance would be less than it would have been if the correct return, additional return, statement, declaration, evidence or valuation had been delivered, made or furnished, that person is liable to a penalty of— (i) €6,345, and (ii) the amount, or in the case of fraud, twice the amount, of the difference specified in subsection (5).
\n
(4)Where any such return, additional return, statement, declaration, evidence or valuation as is mentioned in subsection (3) was delivered, made or furnished neither fraudulently nor negligently by a person and it comes to that person's notice that it was incorrect, then, unless the error is remedied without unreasonable delay, such matter is treated, for the purposes of this section, as having been negligently done by that person.
\n
(5)The difference referred to in subsection (3) is the difference between— (a) the amount of tax payable in respect of the taxable gift or taxable inheritance to which the return, additional return, statement, declaration, evidence or valuation relates, and (b) the amount which would have been the amount so payable if the return, additional return, statement, declaration, evidence or valuation as made or submitted had been correct.
\n
(6)For the purpose of subsection (3), where anything referred to in that subsection is delivered, made or furnished on behalf of a person, it is deemed to have been delivered, made or furnished by that person unless that person proves that it was done without that person's knowledge or consent.
\n
(7)Any person who assists in or induces the delivery, making or furnishing for any purposes of the tax of any return, additional return, statement, declaration, evidence or valuation which that person knows to be incorrect shall be liable to a penalty of €1,265.
\n
(8)This section shall not affect any criminal proceedings.
\n
(9)Subject to this section, sections 987
\n
(4), 1061 , 1062 , 1063 , 1064 , 1065 , 1066 and 1068 of the Taxes Consolidation Act 1997 , shall, with any necessary modifications, apply to a penalty under this Act as if the penalty were a penalty under the Income Tax Acts.
\n
Postponement, remission and compounding of tax. [CATA 1976 s44]
\n
Section 59
\n
59.—(1) Where the Commissioners are satisfied that tax leviable in respect of any gift or inheritance can not without excessive hardship be raised at once, they may allow payment to be postponed for such period, to such extent and on such terms (including the waiver of interest) as they think fit.
\n
(2)If, after the expiration of the relevant period immediately following the date on which any tax became due and payable, the tax or any part of that tax remains unpaid, the Commissioners may, if they think fit, remit the payment of any interest accruing after such expiration on the unpaid tax; and in this subsection, “relevant period” means the period at the end of which the interest on an amount payable in respect of tax would, at the rate from time to time chargeable during that period in respect of interest on tax, equal the amount of such tax.
\n
(3)If, after the expiration of 20 years from the date on which any tax became due and payable, the tax or any part of that tax remains unpaid, the Commissioners may, if they think fit, remit the payment of such tax or any part of that tax and all or any interest on that tax.
\n
(4)Where, in the opinion of the Commissioners, the complication of circumstances affecting a gift or inheritance or the value of that gift or inheritance or the assessment or recovery of tax on that gift or inheritance are such as to justify them in doing so, they may compound the tax payable on the gift or inheritance on such terms as they shall think fit, and may give a discharge to the person or persons accountable for the tax on payment of the tax according to such composition.
\n
Tax to be a charge. [CATA 1976 s47]
\n
Section 60
\n
60.—(1) Tax due and payable in respect of a taxable gift or a taxable inheritance shall, subject to this section, be and remain a charge on the property (other than money or negotiable instruments) of which the taxable gift or taxable inheritance consists at the valuation date and the tax shall have priority over all charges and interests created by the donee or successor or any person claiming in right of the donee or successor or on that donee or successor's behalf, but where any settled property comprised in any taxable gift or taxable inheritance shall be subject to any power of sale, exchange, or partition, exercisable with the consent of the donee or successor, or by the donee or successor with the consent of another person, the donee or successor shall not be precluded by the charge of tax on that donee or successor's taxable gift or taxable inheritance from consenting to the exercise of such power, or exercising any power with proper consent, as the case may be; and where any such power is exercised, the tax shall be charged on the property acquired, in substitution for charging it on the property previously comprised in the gift or inheritance, and on all moneys arising from the exercise of any such power, and on all investments of such moneys.
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(2)Property comprised in a taxable gift or taxable inheritance shall not, as against a bona fide purchaser or mortgagee for full consideration in money or money's worth, or a person deriving title from or under such a purchaser or mortgagee, remain charged with or liable to the payment of tax after the expiration of 12 years from the date of the gift or the date of the inheritance.
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(3)Tax shall not be a charge on property under subsection (1) as against a bona fide purchaser or mortgagee of such property for full consideration in money or money's worth without notice, or a person deriving title from or under such a purchaser or mortgagee.
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Receipts and certificates. [CATA 1976 s48]
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Section 61
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61.—(1) When any amount in respect of tax is paid, the Commissioners shall give a receipt for the payment.
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(2)The Commissioners shall, on application to them by a person who has paid the tax in respect of any property comprised in any taxable gift or taxable inheritance, give to the person a certificate, in such form as they think fit, of the amount of the tax paid by that person in respect of that property.
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(3)The Commissioners shall, on application to them by a person who is an accountable person in respect of any of the property of which a taxable gift or taxable inheritance consists, if they are satisfied that the tax charged on the property in respect of the taxable gift or taxable inheritance has been or will be paid, or that there is no tax so charged, give a certificate to the person, in such form as they think fit, to that effect.
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(4)Where a person who is an accountable person in respect of the property of which a taxable gift or taxable inheritance consists has— (a) delivered to the Commissioners, a full and true return of all the property comprised in the gift or inheritance on the valuation date and such particulars as may be relevant to the assessment of tax in respect of the gift or inheritance, (b) made on that return an assessment of such amount of tax as, to the best of that person's knowledge, information and belief, ought to be charged, levied and paid, and (c) duly paid the amount of such tax (if any), the Commissioners may give a certificate to the person, in such form as they think fit, to the effect that the tax charged on the property in respect of the taxable gift or taxable inheritance has been paid or that there is no tax so charged.
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(5)A certificate referred to in subsection (3) or (4) shall discharge the property from liability for tax (if any) in respect of the gift or inheritance, to the extent specified in the certificate, but shall not discharge the property from tax in case of fraud or failure to disclose material facts and, in any case, shall not affect the tax payable in respect of any other property or the extent to which tax is recoverable from any accountable person or from the personal representatives of any accountable person, but a certificate purporting to be a discharge of the whole tax payable in respect of any property included in the certificate in respect of a gift or inheritance shall exonerate from liability for such tax a bona fide purchaser or mortgagee for full consideration in money or money's worth without notice of such fraud or failure and a person deriving title from or under such a purchaser or mortgagee.
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(6)Subject to subsection (7), where tax is chargeable on the taxable value of a taxable gift or taxable inheritance and— (a) application is made to the Commissioners by any person (in this section referred to as “the applicant”)— (i) who is a person accountable, but not primarily accountable, for the payment of the whole or part of the tax, or (ii) who is the personal representative of any person referred to in subparagraph (i), and (b) the applicant— (i) delivers to the Commissioners a full and true return of all the property comprised in the gift or inheritance and such particulars as may be relevant to the assessment of tax in respect of the gift or inheritance, and (ii) makes on that return an assessment of such amount of tax as, to the best of that person's knowledge, information and belief, ought to be charged, levied and paid, the Commissioners may, on payment of the tax assessed by the applicant, give a certificate to the applicant which shall discharge the applicant from any other claim for tax in respect of the gift or inheritance.
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(7)A certificate by the Commissioners under subsection (6) shall not discharge the applicant in the case of fraud or failure to disclose material facts within that applicant's own knowledge and shall not affect any further tax that may be payable by the applicant if any further property is afterwards shown to have been comprised in the taxable gift or taxable inheritance to which the certificate relates and in respect of which further property the applicant is liable for the tax.
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Certificate relating to registration of title based on possession. [FA 1994 s146]
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Section 62
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62.—(1) In this section— “the Act of 1964” means the Registration of Title Act 1964 ; “the Registrar” means the Registrar of Titles; “relevant period”, in relation to a person's application to be registered as owner of property, means the period commencing on 28 February 1974 and ending on the date as of which the registration was made, but— (a) where the certificate referred to in subsection (2) is a certificate for a period ending prior to the date of the registration, the period covered by the certificate shall be deemed to be the relevant period if, at the time of the registration, the Registrar had no reason to believe that a death relevant to the application for registration occurred after the expiration of the period covered by the certificate, and (b) where the registration of the person (if any) who, at the date of that application, was the registered owner of the property had been made as of a date after 28 February 1974, the relevant period shall commence on the date as of which that registration was made; “the Rules of 1972” means the Land Registration Rules 1972 ( S.I. No. 230 of 1972 ).
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(2)A person shall not be registered as owner of property in a register of ownership maintained under the Act of 1964 on foot of an application made to the Registrar on or after the date of the passing of this Act which is— (a) based on possession, and (b) made under the Rules of 1972, or any other rule made for carrying into effect the objects of the Act of 1964, unless the applicant produces to the Registrar a certificate issued by the Commissioners to the effect that the Commissioners are satisfied— (i) that the property did not become charged with gift tax or inheritance tax during the relevant period, or (ii) that any charge for gift tax or inheritance tax to which the property became subject during that period has been discharged, or will (to the extent that it has not been discharged) be discharged within a time considered by the Commissioners to be reasonable.
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(3)In the case of an application for registration in relation to which a solicitor's certificate is produced for the purpose of rule 19(3), 19(4) or 35 of the Rules of 1972, the Registrar may accept that the application is not based on possession if the solicitor makes to the Registrar a declaration in writing to that effect.
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(4)Where, on application to them by the applicant for registration, the Commissioners are satisfied that they may issue a certificate for the purpose of subsection (2), they shall issue a certificate for that purpose, and the certificate and the application for that certificate shall be on a form provided by the Commissioners.
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(5)A certificate issued by the Commissioners for the purpose of subsection (2) shall be in such terms and subject to such qualifications as the Commissioners think fit, and shall not be a certificate for any other purpose.
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(6)In subsection (2), the reference to a certificate issued by the Commissioners shall be construed as including a reference to a certificate to which subsection (7) relates, and subsection (2) shall be construed accordingly.
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(7)(a) In this subsection— “the relevant particulars” means the particulars of title to the relevant property which are required to be produced to the Registrar for the purposes of paragraph 2 of Form 5 of the Schedule of Forms referred to in the definition of “Forms” contained in rule 2(1) of the Rules of 1972; “the relevant property” means the property in respect of which the application for registration is being made. (b) A certificate to which this subsection relates is a certificate by the solicitor for the applicant for registration in which it is certified, on a form provided by the Commissioners, that the solicitor— (i) is satisfied— (I) in a case where the applicant is a statutory authority within the definition of “statutory authority” contained in section 3(1) of the Act of 1964, that the market value of the relevant property at the time of the application does not exceed €127,000, or (II) in any other case, that— (A) the area of the relevant property does not exceed 5 hectares, and (B) the market value of the relevant property at the time of the application does not exceed €19,050, and (ii) having investigated the title to the relevant property, has no reason to believe that the relevant particulars, in so far as relating to the relevant property at any time during the relevant period, are particulars which related at that time to significant other real property, that is, real property which, if combined with the relevant property for the purposes of subparagraph (i), would cause a limit which applies to the relevant property by virtue of that subparagraph to be exceeded.
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(8)Notwithstanding subsection (7), a certificate by the solicitor for the applicant for registration shall be a certificate to which subsection (7) relates if it certifies, on a form provided by the Commissioners, that the solicitor is satisfied that— (a) the area of the property in respect of which the application for registration is being made does not exceed 500 square metres, (b) the market value of that property at the time of the application does not exceed €2,540, and (c) the application is not part of a series of related applications covering a single piece of property the total area of which exceeds 500 square metres or the market value of which at the time of the application exceeds €2,540.
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Recovery of tax and penalties. [CATA 1976 s49]
\n
Section 63
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63.—(1) Any sum due and payable in respect of tax or interest on such tax and any penalty incurred in connection with tax or interest on such tax is deemed to be a debt due by the accountable person or, if that person is dead, by that person's personal representative, to the Minister for Finance for the benefit of the Central Fund and is payable to the Commissioners and may (without prejudice to any other mode of recovery of such tax and interest) be sued for and recovered by action, or other appropriate proceeding, at the suit of the Attorney General or the Minister for Finance or the Commissioners in any court of competent jurisdiction, notwithstanding anything to the contrary contained in the Inland Revenue Regulation Act 1890 .
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(2)Any person who, having received any sum of money as or for any tax, interest, or penalty under this Act, does not apply the money to the due payment of the tax, interest or penalty, and improperly withholds or detains the same, is accountable for the payment of the tax, interest or penalty to the extent of the amount so received by that person and the same is a debt due by that person to the Minister for Finance for the benefit of the Central Fund and is recoverable in like manner as a debt under subsection (1).
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(3)If any accountable person is liable under section 46 to deliver to the Commissioners a return or an additional return and makes default in so doing, the Attorney General or the Minister for Finance or the Commissioners may sue by action or other appropriate proceeding in the Circuit Court for an order directing the person so making default to deliver such return or additional return or to show cause to the contrary; and the Circuit Court may by order direct such accountable person to deliver such return or additional return within such time as may be specified in the order.
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(4)Whenever property is subject to a charge by virtue of section 60 , the Attorney General or the Minister for Finance or the Commissioners may sue by action or other appropriate proceeding in any court of competent jurisdiction for, and the court may make, an order directing the owner of the property to pay the tax with which the property is charged.
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Application of certain income tax provisions in relation to the collection and recovery of capital acquisitions tax, etc. [FA 1991 s129(1) to (6)]
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Section 64
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64.—(1) In this section “functions” includes powers and duties.
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(2)All sums due under this Act shall be paid to the Collector or to such person as may be nominated under this section.
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(3)
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Section 928
\n
(1)and 964
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(2)of the Taxes Consolidation Act 1997 , shall, with any necessary modifications, apply in relation to an assessment of tax, a correcting assessment of tax, or an additional assessment of tax as it applies in relation to assessments to income tax.
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(4)The Collector shall collect and levy the tax from time to time charged in all assessments, correcting assessments and additional assessments of which particulars have been transmitted to the Collector under subsection (3).
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(5)All the provisions of the Income Tax Acts relating to the collection and recovery of income tax shall, subject to any necessary modifications, apply in relation to tax as they apply in relation to income tax chargeable under Schedule D.
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(6)(a) The Commissioners may nominate persons to exercise on behalf of the Collector any or all of the functions conferred on the Collector by this section and, accordingly, those functions, as well as being exercisable by the Collector, shall also be exercisable on the Collector's behalf by persons so nominated. (b) A person shall not be nominated under this subsection unless that person is an officer or employee of the Commissioners.
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Evidence in proceedings for recovery of tax. [CATA 1976 s50]
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Section 65
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Section 39
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of the Finance Act 1926 , shall apply in any proceedings in the Circuit Court or the District Court for or in relation to the recovery of the tax.
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PART 8
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Appeals Appeals regarding value of real property. [CATA 1976 s51]
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Section 66
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66.—(1) If a person is aggrieved by the decision of the Commissioners as to the market value of any real property, that person may appeal against the decision in the manner prescribed by section 33 of the Finance (1909-10) Act 1910 , and the provisions as to appeals under that section of that Act shall apply accordingly with any necessary modifications.
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(2)The particulars of any transfer or lease which are presented to or obtained by the Commissioners under section 12
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(2)of the Stamp Duties Consolidation Act 1999 shall, in any appeal under this section, be received as prima facie evidence of all matters and things stated in such particulars.
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Appeals in other cases. [CATA 1976 s52]
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Section 67
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67.—(1) In this section— “Appeal Commissioners” has the meaning assigned to it by section 850 of the Taxes Consolidation Act 1997 ; “appellant” means a person who appeals to the Appeal Commissioners under subsection (2).
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(2)Subject to the other provisions of this Act, a person who is called on by the Commissioners to pay an assessment of tax in respect of any property and who is aggrieved by the assessment may, in accordance with this section, appeal to the Appeal Commissioners against the assessment and the appeal shall be heard and determined by the Appeal Commissioners whose determination shall be final and conclusive unless the appeal is required to be reheard by a judge of the Circuit Court or a case is required to be stated in relation to it for the opinion of the High Court on a point of law.
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(3)An appeal shall not lie under this section in relation to the market value of real property.
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(4)A person who intends to appeal under this section against an assessment shall, within 30 days after the date of the assessment, give notice in writing to the Commissioners of that person's intention to appeal against the assessment.
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(5)(a) Subject to this section, the provisions of the Income Tax Acts relating to— (i) the appointment of times and places for the hearing of appeals, (ii) the giving of notice to each person who has given notice of appeal of the time and place appointed for the hearing of that person's appeal, (iii) the determination of an appeal by agreement between the appellant and an officer appointed by the Commissioners in that behalf, (iv) the determination of an appeal by the appellant giving notice of that appellant's intention not to proceed with the appeal, (v) the hearing and determination of an appeal by the Appeal Commissioners, including the hearing and determination of an appeal by one Appeal Commissioner, (vi) the publication of reports of determinations of the Appeal Commissioners, (vii) the determination of an appeal through the neglect or refusal of a person who has given notice of appeal to attend before the Appeal Commissioners at the time and place appointed, (viii) the extension of the time for giving notice of appeal and the readmission of appeals by the Appeal Commissioners and the provisions which apply where action by means of court proceedings has been taken, (ix) the rehearing of an appeal by a judge of the Circuit Court and the statement of a case for the opinion of the High Court on a point of law, (x) the payment of tax in accordance with the determination of the Appeal Commissioners notwithstanding that an appeal is required to be reheard by a judge of the Circuit Court or that a case for the opinion of the High Court on a point of law has been required to be stated or is pending, (xi) the procedures for appeal, (xii) the refusal of an application for an appeal hearing, shall, with any necessary modifications, apply to an appeal under this section as if the appeal were an appeal against an assessment to income tax. (b) The Commissioners shall, subject to their giving notice in writing in that behalf to the appellant within 10 days after the determination of an appeal by the Appeal Commissioners, have the same right as the appellant to have the appeal reheard by a judge of the Circuit Court. (c) The rehearing of an appeal under this section by a judge of the Circuit Court shall be by a judge of the Circuit Court in whose circuit the appellant or one of the appellants resides or (in the case of a body corporate) has its principal place of business, but— (i) in any case where no appellant is resident in or (in the case of a body corporate) has a place of business in the State, or
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(ii) in any case where there is a doubt or a dispute as to the circuit, the appeal shall be reheard by a judge of the Circuit Court assigned to the Dublin Circuit.
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(6)(a) Where a notice or other document which is required or authorised to be served by this section is to be served on a body corporate, such notice shall be served on the secretary or other officer of the body corporate. (b) Any notice or other document which is required or authorised by this section to be served by the Commissioners or by an appellant may be served by post and in the case of a notice or other document addressed to the Commissioners, shall be sent to the Secretaries, Revenue Commissioners, Dublin Castle, Dublin 2. (c) Any notice or other document which is required or authorised to be served by the Commissioners on an appellant under this section may be sent to the solicitor, accountant or other agent of the appellant and a notice thus served shall be deemed to have been served on the appellant unless the appellant proves to the satisfaction of the Appeal Commissioners, or the Circuit Court, as the case may be, that that appellant had, before the notice or other document was served, withdrawn the authority of such solicitor, accountant or other agent to act on that appellant's behalf.
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(7)Prima facie evidence of any notice given under this section by the Commissioners or by an officer of the Commissioners may be given in any proceedings by the production of a document purporting— (a) to be a copy of the notice, or (b) if the details specified in the notice are contained in an electronic, photographic or other record maintained by the Commissioners, to reproduce those details in so far as they relate to that notice, and it shall not be necessary to prove the official position of the person by whom the notice purports to be given or, if it is signed, the signature, or that the person signing and giving it was authorised to do so.
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(8)(a) The Commissioners may serve notice in writing, referring expressly to this subsection, on any person whom they have reason to believe to be accountable for the payment of tax, of any decision they have made which is relevant to such tax. (b) Any person who is informed of a decision in accordance with paragraph (a) may appeal to the Appeal Commissioners against the decision. (c) The Appeal Commissioners shall hear and determine an appeal to them under this subsection as if it were an appeal to them against an assessment to tax, and the provisions of this section relating to an appeal or to the rehearing of an appeal or to the statement of a case for the opinion of the High Court on a point of law shall, with any necessary modifications, apply accordingly.
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Conditions before appeal may be made. [CATA 1976 s52A]
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Section 68
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68.—No appeal shall lie under section 66 or 67 until such time as the person aggrieved by the decision or assessment (as the case may be) complies with section 46
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(2)in respect of the gift or inheritance in relation to which the decision or assessment is made, as if there were no time-limit for complying with section 46
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(2)and that person were a person primarily accountable for the payment of tax by virtue of section 45
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(1)and required by notice in writing by the Commissioners to deliver a return.
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PART 9
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Exemptions Exemption of small gifts. [CATA 1976 s53(1), (2) and (4)]
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Section 69
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69.—(1) In this section, “relevant period” means the period of 12 months ending on 31 December in each year.
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(2)The first €1,270 of the total taxable value of all taxable gifts taken by a donee from any one disponer in any relevant period is exempt from tax and is not taken into account in computing tax.
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(3)In the case of a gift which becomes an inheritance by reason of its being taken under a disposition where the date of the disposition is within 2 years prior to the death of the disponer, the same relief is granted in respect of that inheritance under subsection (2) as if it were a gift.
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Exemption for spouses (gifts). [FA 1990 s127(1)]
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Section 70
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70.—Notwithstanding any other provisions of this Act, a gift taken by a donee, who is at the date of the gift the spouse of the disponer, is exempt from tax and is not taken into account in computing tax.
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Exemption for spouses (inheritances). [FA 1985 s59(1)]
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Section 71
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71.—Notwithstanding any other provisions of this Act, an inheritance taken by a successor, who is at the date of the inheritance the spouse of the disponer, is exempt from tax and is not taken into account in computing tax.
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Relief in respect of certain policies of insurance. [FA 1985 s60(1), (1A) and (2); FA 1990 s130; FA 1991 s118; FA 1996 s124]
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Section 72
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72.—(1) In this section— “insured” means an individual or, in relation to a qualifying insurance policy where— (a) the insured is an individual and the spouse of that individual at the date the policy is effected, (b) annual premiums are paid by either or both of them during their joint lives, and by the survivor of them during the life of such survivor, and (c) the proceeds of the policy are payable on the death of such survivor, or on the simultaneous deaths of both such spouses, means— (i) where the proceeds of the policy are so payable on the death of such survivor, that survivor, and the proceeds of the policy is deemed to have been provided by such survivor, as disponer, or (ii) where the proceeds of the policy are so payable on the simultaneous deaths of both such spouses, each of the spouses, and each such spouse is deemed to have provided the proceeds of the policy— (I) to the extent that such proceeds are applied in paying the relevant tax of the insured who is that spouse, and (II) where the proceeds of the policy are not applied in paying relevant tax, to the extent that the proceeds not so applied are comprised in an inheritance taken under a disposition made by that spouse; “qualifying insurance policy” means a policy of insurance— (a) which is in a form approved by the Commissioners for the purposes of this section, (b) in respect of which annual premiums are paid by the insured during the insured's life, and (c) which is expressly effected under this section for the purpose of paying relevant tax; “relevant tax” means inheritance tax payable in respect of an inheritance (excluding, in the computation of such tax, an interest in a qualifying insurance policy) taken— (a) on the death of the insured, (b) under a disposition made by the insured, where the inheritance is taken on or after the date of death of the insured and not later than one year after that death, and (c) under a disposition made by the spouse of the insured where the inheritance is taken only in the event of the insured not surviving the spouse by a period of up to 31 days, and the relevant qualifying insurance policy is— (i) a policy of insurance within the meaning of paragraphs (a), (b) and (c) of the definition of “insured” in this subsection, or (ii) a policy of insurance where the insured is an individual and the proceeds of the policy are payable only on the contingency of the insured surviving that spouse.
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(2)(a) An interest in a qualifying insurance policy which is comprised in an inheritance taken under a disposition made by the insured is, to the extent that the proceeds of the policy are applied in paying relevant tax, exempt from tax in relation to that inheritance and is not taken into account in computing tax. (b) An interest in a qualifying insurance policy which is comprised in an inheritance taken under a disposition made by the insured is, to the extent that the proceeds of the policy are not applied in paying relevant tax, and notwithstanding the provisions of this Act, deemed to be taken on a day immediately after— (i) the date of the death of the insured, or (ii) the latest date (if any) on which an inheritance is taken in respect of which that relevant tax is payable, whichever is the later.
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Relief in respect of certain policies of insurance relating to tax payable on gifts. [FA 1991 s119(1) to (5)]
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Section 73
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73.—(1) In this section— “appointed date” means— (a) a date occurring not earlier than 8 years after the date on which a relevant insurance policy is effected, or (b) a date on which the proceeds of a relevant insurance policy become payable either on the critical illness or the death of the insured, or one of the insured in a case to which paragraph (b) of the definition of “insured” relates, being a date prior to the date to which paragraph (a) of this definition relates; “insured” means— (a) where the insured is an individual, that individual, or (b) where the insured is an individual and the spouse of that individual at the date the policy is effected, that individual and the spouse of that individual, jointly or separately, or the survivor of them, as the case may be; “relevant insurance policy” means a policy of insurance— (a) which is in a form approved by the Commissioners for the purposes of this section, (b) in respect of which annual premiums are paid by the insured, (c) the proceeds of which are payable on the appointed date, and (d) which is expressly effected under this section for the purpose of paying relevant tax; “relevant tax” means gift tax or inheritance tax, payable in connection with an inter vivos disposition made by the insured within one year after the appointed date, excluding gift tax or inheritance tax payable on an appointment out of an inter vivos discretionary trust set up by the insured.
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(2)The proceeds of a relevant insurance policy are, to the extent that such proceeds are used to pay relevant tax, exempt from tax and are not taken into account in computing such tax.
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(3)Subject to sections 70 and 76, where the insured makes an inter vivos disposition of the proceeds, or any part of the proceeds, of a relevant insurance policy other than in paying relevant tax, such proceeds are not exempt from tax.
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(4)A relevant insurance policy is a qualifying insurance policy for the purposes of section 72 where the proceeds of such relevant insurance policy become payable on the death of the insured or one of the insured in a case to which paragraph (b) of the definition of “insured” relates, if such relevant insurance policy would have been a qualifying insurance policy if it had been expressly effected under that section.
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(5)A qualifying insurance policy for the purposes of section 72 is a relevant insurance policy where the proceeds of such qualifying insurance policy are used to pay relevant tax arising under an inter vivos disposition made by the insured within one year after the appointed date.
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Exemption of certain policies of assurance. [FA 1993 s133]
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Section 74
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74.—(1) In this section— “assurance company” has the meaning assigned to it by section 706 of the Taxes Consolidation Act 1997 ; “new policy” means a contract entered into by an assurance company which is a policy of assurance on the life of any person issued on or after 1 January 2001; “old policy” means a contract entered into by an assurance company in the course of carrying on a foreign life assurance business within the meaning of section 451 of the Taxes Consolidation Act 1997 and issued on or after 1 December 1992 and before 1 January 2001.
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(2)Where any interest in a new policy or in an old policy is comprised in a gift or an inheritance, then any such interest— (a) is exempt from tax, and (b) is not taken into account in computing tax on any gift or inheritance taken by a donee or successor, if it is shown to the satisfaction of the Commissioners that— (i) such interest is comprised in the gift or inheritance at the date of the gift or at the date of the inheritance, (ii) at the date of the disposition, the disponer is neither domiciled nor ordinarily resident in the State, and (iii) at the date of the gift or at the date of the inheritance, the donee or successor is neither domiciled nor ordinarily resident in the State.
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(3)Where— (a) an interest in a new policy or in an old policy, as the case may be, which is comprised in a gift or inheritance came into the beneficial ownership of the disponer or became subject to the disposition prior to 15 February 2001, and (b) the conditions at subparagraphs (i) and (iii) of subsection (2) are complied with, then that subsection shall apply to that interest in a new policy or in an old policy, as the case may be, if, at the date of the disposition, the proper law of the disposition was not the law of the State.
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Exemption of specified collective investment undertakings. [FA 1989 s85(1) and (2); FA 2001 s224(2) and (4) (part)]
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Section 75
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75.—In this section— “investment undertaking” has the meaning assigned to it by section 739B of the Taxes Consolidation Act 1997 ; “specified collective investment undertaking” has the meaning assigned to it by section 734 of the Taxes Consolidation Act 1997 ; “unit”, in relation to an investment undertaking, has the meaning assigned to it by section 739B of the Taxes Consolidation Act 1997 ; “unit”, in relation to a specified collective investment undertaking, has the meaning assigned to it by section 734 of the Taxes Consolidation Act 1997 .
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(2)Where any unit of an investment undertaking or of a specified collective investment undertaking is comprised in a gift or an inheritance, then such unit— (a) is exempt from tax, and (b) is not taken into account in computing tax on any gift or inheritance taken by the donee or successor, if it is shown to the satisfaction of the Commissioners that— (i) the unit is comprised in the gift or inheritance— (I) at the date of the gift or at the date of the inheritance, and (II) at the valuation date, (ii) at the date of the disposition, the disponer is neither domiciled nor ordinarily resident in the State, and (iii) at the date of the gift or at the date of the inheritance, the donee or successor is neither domiciled nor ordinarily resident in the State.
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(3)Where— (a) any unit of an investment undertaking or of a specified collective investment undertaking which is comprised in a gift or inheritance came into the beneficial ownership of the disponer or became subject to the disposition prior to 15 February 2001, and (b) the conditions at subparagraphs (i) and (iii) of subsection (2) are complied with, then that subsection shall apply to that unit of an investment undertaking or to that unit of a specified collective investment undertaking, as the case may be, comprised in a gift or inheritance, if at the date of the disposition, the proper law of the disposition was not the law of the State.
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Provisions relating to charities, etc. [CATA 1976 s54(1), (2) and (4)]
\n
Section 76
\n
76.—(1) Where any person takes a benefit for public or charitable purposes that person is deemed— (a) for the purposes of sections 5(1) and 10(1), to have taken that benefit beneficially, and (b) for the purposes of Schedule 2, to have taken a gift or an inheritance accordingly to which the group threshold of €19,050 applies.
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(2)A gift or an inheritance which is taken for public or charitable purposes is exempt from tax and is not taken into account in computing tax, to the extent that the 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.
\n
(3)Except where provided in section 80
\n
(5), a gift or inheritance which a person takes on becoming entitled to any benefit on the application to public or charitable purposes of property (including moneys provided by the Oireachtas or a local authority) held for such purposes is exempt from tax and is not taken into account in computing tax.
\n
Exemption of heritage property. [CATA 1976 s55; FA 1978 s39(1) and (1A)]
\n
Section 77
\n
77.—(1) This section applies to the following objects, that is, any pictures, prints, books, manuscripts, works of art, jewellery, scientific collections or other things not held for the purposes of trading— (a) which, on a claim being made to the Commissioners, appear to them to be of national, scientific, historic or artistic interest, (b) which are kept permanently in the State except for such temporary absences outside the State as are approved by the Commissioners, and (c) in respect of which reasonable facilities for viewing are allowed to members of the public or to recognised bodies or to associations of persons.
\n
(2)(a) Any object to which this section applies and which, at the date of the gift or at the date of inheritance, and at the valuation date, is comprised in a gift or an inheritance taken by a person is exempt from tax in relation to that gift or inheritance, and the value of that gift or inheritance is not taken into account in computing tax on any gift or inheritance taken by that person unless the exemption ceases to apply under subsection (3) or (4). (b)
\n
Section 89
\n
(5)shall apply, for the purposes of this subsection, as it applies in relation to agricultural property.
\n
(3)If an object exempted from tax by virtue of subsection (2) is sold within 6 years after the valuation date, and before the death of the donee or successor, the exemption referred to in subsection (2) shall cease to apply to such object, but if the sale of such object is a sale by private treaty to the National Gallery of Ireland, the National Museum of Science and Art or any other similar national institution, any university in the State or any constituent college of such university, a local authority or the Friends of the National Collections of Ireland, the exemption referred to in subsection (2) shall continue to apply.
\n
(4)The exemption referred to in subsection (2) shall cease to apply to an object, if at any time after the valuation date and— (a) before the sale of the object, (b) before the death of the donee or successor, and (c) before such object again forms part of the property comprised in a gift or an inheritance (other than an inheritance arising by virtue of section 20 ) in respect of which gift or inheritance an absolute interest is taken by a person other than the spouse of that donee or successor. there has been a breach of any condition specified in paragraph (b) or (c) of subsection (1).
\n
(5)Any work of art normally kept outside the State which is comprised in an inheritance which is charged to tax by virtue of section 11
\n
(1)(b) or 11(2)(c) is exempt from tax and is not taken into account in computing tax, to the extent that the Commissioners are satisfied that it was brought into the State soley for public exhibition, cleaning or restoration.
\n
(6)Subsections (2) to (4) shall apply to the objects specified in subsection (1), to a house or garden that is situated in the State and is not held for the purpose of trading and— (a) which, on a claim being made to the Commissioners, appears to them to be of national, scientific, historic or artistic interest, (b) in respect of which reasonable facilities for viewing were allowed to members of the public during the 3 years immediately before the date of the gift or the date of the inheritance, and (c) in respect of which reasonable facilities for viewing are allowed to members of the public, with the modification that the reference in subsection (4) to subsection (1)(b) or (c) shall be construed as a reference to paragraph (c) of this subsection and with any other necessary modifications.
\n
(7)Without prejudice to the generality of subsection (6), the provision of facilities for the viewing by members of the public of a house or garden is not regarded as reasonable in relation to any year which is taken into account for the purposes of paragraphs (b) and (c) of subsection (1), unless— (a) Bord Fáilte Éireann (in this section referred to as “the Board”) has, on or before 1 January in that year, been provided with particulars of— (i) the name, if any, and address of the house or garden, and (ii) the days and times during the year when access to the house or garden is afforded to the public and the price, if any, payable for such access, and (b) in the opinion of the Commissioners— (i) subject to such temporary closure necessary for the purpose of the repair, maintenance or restoration of the house or garden as is reasonable, access to the house or garden is afforded for not less than 60 days (including not less than 40 days during the period commencing on 1 May and ending on 30 September of which not less than 10 of the days during that period shall fall on a Saturday or a Sunday or both) in that year, (ii) on each day on which access to the house or garden is afforded, the access is afforded in a reasonable manner and at reasonable times for a period, or periods in the aggregate, of not less than 4 hours, (iii) access to the whole or to a substantial part of the house or garden is afforded at the same time, and (iv) the price, if any, paid by members of the public in return for that access is reasonable in amount and does not operate to preclude members of the public from seeking access to the house or garden.
\n
Heritage property of companies. [FA 1995 s166(1) to (7)]
\n
Section 78
\n
78.—(1) In this section— “relevant heritage property” means any one or more of the following— (a) objects to which section 77
\n
(1)applies, (b) a house or garden referred to in section 77
\n
(6); “private company” has the meaning assigned to it by section 27 ; “subsidiary” has the meaning assigned to it by section 155 of the Companies Act 1963 .
\n
(2)Where a gift or inheritance consists in whole or in part— (a) at the date of the gift or at the date of the inheritance, and (b) at the valuation date, of one or more shares in a private company which (after the taking of the gift or inheritance) is, on the date of the gift or on the date of the inheritance, a company controlled by the donee or successor within the meaning of section 27 , then each such share is, to the extent that its market value for tax purposes is, at the valuation date, attributable to relevant heritage property, exempt from tax and the value of such relevant heritage property is, to that extent, not to be taken into account in computing tax on any gift or inheritance taken by that person unless the exemption ceases to apply under subsection (5) or (6), subject to the condition that the relevant heritage property was in the beneficial ownership of the company on 12 April 1995, or in the beneficial ownership on that date of another company which was on that date a subsidiary of the first-mentioned company.
\n
(3)
\n
Section 89
\n
(5)shall apply, for the purposes of subsection (2), as it applies in relation to agricultural property.
\n
(4)Where in relation to a gift or inheritance— (a) a part of a share in a private company is exempt from tax by virtue of subsection (2), and (b) such share is relevant business property within the meaning of Chapter 2 of Part 10, then the relevant heritage property to which the market value of such share is partly attributable is disregarded in determining for the purposes of that Chapter what part of the taxable value of that gift or inheritance is attributable to such share; but the amount of the reduction (if any) which would but for subsection (2) fall to be made under that Chapter in respect of such share shall not otherwise be restricted notwithstanding subsection (2).
\n
(5)If a share in a private company which is exempted in whole or in part from tax by virtue of subsection (2) is sold within 6 years after the valuation date, and before the death of the donee or successor, the exemption referred to in subsection (2) shall, subject to subsection (7), cease to apply to such share.
\n
(6)Where the whole or part of the market value of a share in a private company which is comprised in a gift or inheritance is on the valuation date attributable to an item of relevant heritage property and— (a) that item of relevant heritage property is sold within 6 years after the valuation date, and before the death of the donee or successor, or (b) at any time after the valuation date and— (i) before the sale of such share or such item of relevant heritage property, (ii) before the death of the donee or successor, and (iii) before such share or such item of relevant heritage property forms part of the property comprised in a subsequent gift or inheritance in respect of which gift or inheritance an absolute interest is taken by a person other than the spouse of that donee or successor, there has been a breach of any condition specified in section 77
\n
(1)(b) or (c) or section 77
\n
(6)(c), then the exemption referred to in subsection (2) shall, subject to subsection (7), cease to apply to such share to the extent that that market value is attributable to such item of relevant heritage property.
\n
(7)Notwithstanding subsections (5) and (6), the exemption referred to in subsection (2) shall continue to apply if the sale of the share referred to in subsection (5), or the sale of the item of relevant heritage property referred to in subsection (6), is a sale by private treaty to the National Gallery of Ireland, the National Museum of Science and Art or any other similar national institution, any university in the State or any constituent college of such university, a local authority or the Friends of the National Collections of Ireland.
\n
Exemption of certain inheritances taken by parents. [FA 1995 s165]
\n
Section 79
\n
79.—Notwithstanding any other provision of this Act, an inheritance taken by a person from a disponer is, where— (a) that person is a parent of that disponer, and (b) the date of the inheritance is the date of death of that disponer, exempt from tax and is not taken into account in computing tax if that disponer took a non-exempt gift or inheritance from either or both of that disponer's parents within the period of 5 years immediately prior to the date of death of that disponer.
\n
Payments relating to retirement, etc. [CATA 1976 s56]
\n
Section 80
\n
80.—(1) In this section— “superannuation scheme” includes any arrangement in connection with employment for the provision of a benefit on or in connection with the retirement or death of an employee; “employment” includes employment as a director of a body corporate and cognate words shall be construed accordingly.
\n
(2)Subject to subsection (3), any payment to an employee or former employee by, or out of funds provided by, that employee's or former employee's employer or any other person, bona fide by means of retirement benefit, redundancy payment or pension is not a gift or an inheritance.
\n
(3)Subsection (2) shall not apply in relation to a payment referred to in that subsection, and any such payment is deemed to be a gift or an inheritance where— (a) (i) the employee is a relative of the employer or other disponer, or (ii) the employer is a private company within the meaning of section 27 , and of which private company the employee is deemed to have control within the meaning of that section; (b) the payment is not made under a scheme (relating to superannuation, retirement or redundancy) approved by the Commissioners under the Income Tax Acts; and (c) the Commissioners decide that in the circumstances of the case the payment is excessive.
\n
(4)The Commissioners shall serve on an accountable person a notice in writing of their decision referred to in subsection (3) and the accountable person concerned may appeal against such decision and section 67 shall apply with any necessary modifications in relation to such appeal as it applies in relation to an appeal against an assessment of tax.
\n
(5)Any benefit taken by a person other than the person in respect of whose service the benefit arises, under the provisions of any superannuation fund, or under any superannuation scheme, established solely or mainly for persons employed in a profession, trade, undertaking or employment, and their dependants, is (whether or not any person had a right enforceable at law to the benefit) deemed to be a gift or an inheritance, as the case may be, derived under a disposition made by the person in respect of whose service the benefit arises and not by any other person.
\n
Exemption of certain securities. [CATA 1976 s57(1) and (2); FA 1997 s135(2) (part); FA 2001 s219 (part)]
\n
Section 81
\n
81.—(1) In this section— “security” means any security, stock, share, debenture, debenture stock, certificate of charge or other form of security issued, whether before, on or after the passing of this Act, and which by virtue of any enactment or by virtue of the exercise of any power conferred by any enactment is exempt from taxation when in the beneficial ownership of a person neither domiciled nor ordinarily resident in the State; “unit trust scheme” means an authorised unit trust scheme within the meaning of the Unit Trusts Act 1990 , whose deed expressing the trusts of the scheme restricts the property subject to those trusts to securities.
\n
(2)Securities, or units (within the meaning of the Unit Trusts Act 1990 ) of a unit trust scheme, comprised in a gift or an inheritance are exempt from tax (and are not taken into account in computing tax on any gift or inheritance taken by the donee or successor) if it is shown to the satisfaction of the Commissioners that— (a) the securities or units were comprised in the disposition continuously for a period of 6 years immediately before the date of the gift or the date of the inheritance, and any period immediately before the date of the disposition during which the securities or units were continuously in the beneficial ownership of the disponer is deemed, for the purpose of this paragraph, to be a period or part of a period immediately before the date of the gift or the date of the inheritance during which they were continuously comprised in the disposition; (b) the securities or units were comprised in the gift or inheritance— (i) at the date of the gift or the date of the inheritance, and (ii) at the valuation date; and (c) the donee or successor is at the date of the gift or the date of the inheritance neither domiciled nor ordinarily resident in the State, and section 89
\n
(5)shall apply, for the purposes of this subsection, as it applies in relation to agricultural property.
\n
(3)Subsection (2)(a) shall not apply where— (a) the disponer was neither domiciled nor ordinarily resident in the State at the date of the disposition, or (b) the securities or units concerned came into the beneficial ownership of the disponer before 26 March 1997, or became subject to the disposition before that date, and the disponer was neither domiciled nor ordinarily resident in the State at the date of the gift or the date of the inheritance.
\n
(4)Where the securities or units concerned came into the beneficial ownership of the disponer, or became subject to the disposition prior to 15 February 2001, then subsection (2) shall apply as if the reference to the period of 6 years in that subsection were construed as a reference to a period of 3 years.
\n
Exemption of certain receipts. [CATA 1976 s58]
\n
Section 82
\n
82.—(1) The following are not gifts or inheritances: (a) the receipt by a person of any sum bona fide by means of compensation or damages for any wrong or injury suffered by that person in that person's person, property, reputation or means of livelihood; (b) the receipt by a person of any sum bona fide by means of compensation or damages for any wrong or injury resulting in the death of any other person; (c) the receipt by a person of any sum bona fide by means of winnings from betting (including pool betting) or from any lottery, sweepstake or game with prizes; (d) any benefit arising out of— (i) the payment to the Official Assignee in Bankruptcy of money which has been provided by, or which represents property provided by, friends of a bankrupt, or (ii) a remission or abatement of debts by the creditors of a bankrupt, to enable the bankrupt to fulfil an offer of composition after bankruptcy in accordance with section 39 of the Bankruptcy Act 1988 ; and (e) any benefit arising out of— (i) the payment to the Official Assignee in Bankruptcy of money which has been provided by, or which represents property provided by, friends of an arranging debtor, or (ii) a remission or abatement of debts by the creditors of an arranging debtor, to enable the debtor to carry out the terms of a proposal made by that debtor under section 87 of the Bankruptcy Act 1988 , which has been accepted by that debtor's creditors and approved and confirmed by the High Court.
\n
(2)Notwithstanding anything contained in this Act, the receipt in the lifetime of the disponer of money or money's worth— (a) by— (i) the spouse or child of the disponer, or (ii) a person in relation to whom the disponer stands in loco parentis, for support, maintenance or education, or (b) by a person who is in relation to the disponer a dependent relative under section 466 of the Taxes Consolidation Act 1997 , for support or maintenance, is not a gift or an inheritance, where the provision of such support, maintenance or education, or such support or maintenance— (i) is such as would be part of the normal expenditure of a person in the circumstances of the disponer, and (ii) is reasonable having regard to the financial circumstances of the disponer.
\n
(3)(a) In this subsection “incapacitated individual”, “trust funds” and “qualifying trust” have the meanings assigned to them, respectively, by section 189A (inserted by the Finance Act 1999 ) of the Taxes Consolidation Act 1997 . (b) The receipt by an incapacitated individual of the whole or any part of trust funds which are held on a qualifying trust, or of the income from such a qualifying trust, is not a gift or an inheritance.
\n
(4)The receipt by a minor child of the disponer of money or money's worth for support, maintenance or education, at a time when the disponer and the other parent of that minor child are dead, is not a gift or an inheritance where the provision of such support, maintenance or education— (a) is such as would be part of the normal expenditure of a person in the circumstances of the disponer immediately prior to the death of the disponer, and (b) is reasonable having regard to the financial circumstances of the disponer immediately prior to the death of the disponer.
\n
Exemption where disposition was made by the donee or successor. [CATA 1976 s59]
\n
Section 83
\n
83.—(1) In this section, “company” means a body corporate (wherever incorporated), other than a private company within the meaning of section 27 .
\n
(2)Tax is not chargeable on a gift or an inheritance taken by the donee or successor under a disposition made by that donee or successor.
\n
(3)Where, at the date of the gift, 2 companies are associated in the manner described in subsection (4), a gift taken by one of them under a disposition made by the other is deemed to be a gift to which subsection (2) applies.
\n
(4)For the purposes of subsection (3), 2 companies shall be regarded as associated if— (a) one company would be beneficially entitled to not less than 90 per cent of any assets of the other company available for distribution to the owners of its shares and entitlements of the kind referred to in section 43
\n
(1)on a winding up, or (b) a third company would be beneficially entitled to not less than 90 per cent of any assets of each of them available as in paragraph (a).
\n
Exemption relating to qualifying expenses of incapacitated persons. [CATA 1976 s59A]
\n
Section 84
\n
84.—(1) In this section, “qualifying expenses” means expenses relating to medical care including the cost of maintenance in connection with such medical care.
\n
(2)A gift or inheritance which is taken exclusively for the purpose of discharging qualifying expenses of an individual who is permanently incapacitated by reason of physical or mental infirmity is, to the extent that the Commissioners are satisfied that it has been or will be applied to such purpose, exempt from tax and is not taken into account in computing tax.
\n
Exemption relating to retirement benefits. [CATA 1976 s59B]
\n
Section 85
\n
85.—(1) In this section, “retirement fund”, in relation to an inheritance taken on the death of a disponer, means an approved retirement fund or an approved minimum retirement fund, within the meaning of section 784A or 784C of the Taxes Consolidation Act 1997 , being a fund which is wholly comprised of all or any of the following, that is— (a) property which represents in whole or in part the accrued rights of the disponer, or of a predeceased spouse of the disponer, under an annuity contract or retirement benefits scheme approved by the Commissioners for the purposes of Chapter 1 or Chapter 2 of Part 30 of that Act, (b) any accumulations of income of such property, or (c) property which represents in whole or in part those accumulations.
\n
(2)The whole or any part of a retirement fund which is comprised in an inheritance which is taken on the death of a disponer is exempt from tax in relation to that inheritance and the value of that inheritance is not taken into account in computing tax, where— (a) the disposition under which the inheritance is taken is the will or intestacy of the disponer, and (b) the successor is a child of the disponer and had attained 21 years of age at the date of that disposition.
\n
Exemption relating to certain dwellings. [CATA 1976 s59C]
\n
Section 86
\n
86.—(1) In this section— “dwelling-house” means— (a) a building or part (including an appropriate part within the meaning of section 5
\n
(5)) of a building which was used or was suitable for use as a dwelling, and (b) the curtilage of the dwelling-house up to an area (exclusive of the site of the dwelling-house) of one acre but if the area of the curtilage (exclusive of the site of the dwelling-house) exceeds one acre then the part which comes within this definition is the part which, if the remainder were separately occupied, would be the most suitable for occupation and enjoyment with the dwelling-house; “relevant period”, in relation to a dwelling-house comprised in a gift or inheritance, means the period of 6 years commencing on the date of the gift or the date of the inheritance.
\n
(2)In this section any reference to a donee or successor is construed as including a reference to the transferee referred to in section 32
\n
(2).
\n
(3)Subject to subsections (4), (5), (6) and (7), a dwelling-house comprised in a gift or inheritance which is taken by a donee or successor who— (a) has continuously occupied as that donee or successor's only or main residence— (i) that dwelling-house throughout the period of 3 years immediately preceding the date of the gift or the date of the inheritance, or (ii) where that dwelling-house has directly or indirectly replaced other property, that dwelling-house and that other property for periods which together comprised at least 3 years falling within the period of 4 years immediately preceding the date of the gift or the date of the inheritance, (b) is not, at the date of the gift or at the date of the inheritance, beneficially entitled to any other dwelling-house or to any interest in any other dwelling-house, and (c) continues to occupy that dwelling-house as that donee or successor's only or main residence throughout the relevant period, is exempt from tax in relation to that gift or inheritance, and the value of that dwelling-house is not to be taken into account in computing tax on any gift or inheritance taken by that person unless the exemption ceases to apply under subsection (6) or (7).
\n
(4)The condition in paragraph (c) of subsection (3) shall not apply where the donee or successor has attained the age of 55 years at the date of the gift or at the date of the inheritance.
\n
(5)For the purpose of paragraph (c) of subsection (3), the donee or successor is deemed to occupy the dwelling-house concerned as that donee or successor's only or main residence throughout any period of absence during which that donee or successor worked in an employment or office all the duties of which were performed outside the State.
\n
(6)If a dwelling-house exempted from tax by virtue of subsection (3) is sold or disposed of, either in whole or in part, within the relevant period, and before the death of the donee or successor (not being a donee or successor who had attained the age of 55 years at the date of the gift or inheritance), the exemption referred to in that subsection shall cease to apply to such dwelling-house unless the sale or disposal occurs in consequence of the donee or successor requiring long-term medical care in a hospital, nursing home or convalescent home.
\n
(7)The exemption referred to in subsection (3) shall cease to apply to a dwelling-house, if at any time during the relevant period and— (a) before the dwelling-house is sold or disposed of, and (b) before the death of the donee or successor, the condition specified in paragraph (c) of subsection (3) has not been complied with unless that non-compliance occurs in consequence of the donee or successor requiring long-term medical care in a hospital, nursing home or convalescent home, or in consequence of any condition imposed by the employer of the donee or successor requiring the donee or successor to reside elsewhere.
\n
(8)Where a dwelling-house exempted from tax by virtue of subsection (3) (in this section referred to as the “first-mentioned dwelling-house”) is replaced within the relevant period by another dwelling-house, the condition specified in paragraph (c) of subsection (3) is treated as satisfied if the donee or successor has occupied as that donee or successor's only or main residence the first-mentioned dwelling-house, that other dwelling-house and any dwelling-house which has within the relevant period directly or indirectly replaced that other dwelling-house for periods which together comprised at least 6 years falling within the period of 7 years commencing on the date of the gift or the date of the inheritance.
\n
(9)Any period of absence which would satisfy the condition specified in paragraph (c) of subsection (3) in relation to the first-mentioned dwelling-house shall, if it occurs in relation to any dwelling-house which has directly or indirectly replaced that dwelling-house, likewise satisfy that condition as it has effect by virtue of subsection (8).
\n
(10)Subsection (6) shall not apply to a case falling within subsection (8), but the extent of the exemption under this section in such a case shall, where the donee or successor had not attained the age of 55 years at the date of the gift or at the date of the inheritance, not exceed what it would have been had the replacement of one dwelling-house by another referred to in subsection (8), or any one or more of such replacements, taken place immediately prior to that date.
\n
Exemption of certain benefits. [FA 1982 s98]
\n
Section 87
\n
87.—Where a gift or an inheritance is taken, by direction of the disponer, free of tax, the benefit taken is deemed to include the amount of tax chargeable on such gift or inheritance but not the amount of tax chargeable on such tax.
\n
Exemption of certain transfers from capital acquisitions tax following the dissolution of a marriage. [FA 1997 s142(1) and (2)]
\n
Section 88
\n
88.—(1) Notwithstanding any other provision of this Act, a gift or inheritance taken by virtue or in consequence of an order to which this subsection applies by a spouse who was a party to the marriage concerned is exempt from tax and is not taken into account in computing tax.
\n
(2)Subsection (1) applies— (a) to a relief order or an order under section 25 of the Family Law Act 1995 , made, following the dissolution of a marriage, or (b) to a maintenance pending relief order made, following the granting of leave under section 23
\n
(3)of the Family Law Act 1995 , to a spouse whose marriage has been dissolved, (c) to an order referred to in section 41 (a) of the Family Law Act 1995 , or an order under section 42(1) of that Act made in addition to or instead of an order under section 41 (a) of that Act, in favour of a spouse whose marriage has been dissolved, (d) to an order under Part III of the Family Law (Divorce) Act 1996 , and (e) to an order or other determination to like effect, made on or after 10 February 2000, which is analogous to an order referred to in paragraph (a), (b), (c) or (d), of a court under the law of another territory made under or in consequence of the dissolution of a marriage, being a dissolution that is entitled to be recognised as valid in the State.
\n
PART 10
\n
Reliefs
\n
Chapter 1
\n
Agricultural relief Provisions relating to agricultural property. [CATA 1976 s19]
\n
Section 89
\n
89.—(1) In this section— “agricultural property” means agricultural land, pasture and woodland situate in the State and crops, trees and underwood growing on such land and also includes such farm buildings, farm houses and mansion houses (together with the lands occupied with such farm buildings, farm houses and mansion houses) as are of a character appropriate to the property, and farm machinery, livestock and bloodstock on such property; “agricultural value” means the market value of agricultural property reduced by 90 per cent of that value; “farmer” in relation to a donee or successor, means an individual who is domiciled in the State and in respect of whom not less than 80 per cent of the market value of the property to which the individual is beneficially entitled in possession is represented by the market value of property in the State which consists of agricultural property, and, for the purposes of this definition— (a) no deduction is made from the market value of property for any debts or encumbrances, and (b) an individual is deemed to be beneficially entitled in possession to— (i) an interest in expectancy, notwithstanding the definition of “entitled in possession” in section 2 , and (ii) property which is subject to a discretionary trust under or in consequence of a disposition made by the individual where the individual is an object of the trust.
\n
(2)Except where provided in subsection (6), in so far as any gift or inheritance consists of agricultural property— (a) at the date of the gift or at the date of the inheritance, and (b) at the valuation date, and is taken by a donee or successor who is, on the valuation date and after taking the gift or inheritance, a farmer, section 28 (other than subsection (7)(b) of that section) shall apply in relation to agricultural property as it applies in relation to other property subject to the following modifications— (i) in subsection (1) of that section, the reference to market value shall be construed as a reference to agricultural value, (ii) where a deduction is to be made for any liability, costs or expenses in accordance with subsection (1) of that section only a proportion of such liability, costs or expenses is deducted and that proportion is the proportion that the agricultural value of the agricultural property bears to the market value of that property, and (iii) where a deduction is to be made for any consideration under subsection (2) or (4)(b) of that section, only a proportion of such consideration is deducted and that proportion is the proportion that the agricultural value of the agricultural property bears to the market value of that property.
\n
(3)Where a taxable gift or a taxable inheritance is taken by a donee or successor subject to the condition that the whole or part of that taxable gift or taxable inheritance will be invested in agricultural property and such condition is complied with within 2 years after the date of the gift or the date of the inheritance, then the gift or inheritance is deemed, for the purposes of this section, to have consisted— (a) at the date of the gift or at the date of the inheritance, and (b) at the valuation date, of agricultural property to the extent to which the gift or inheritance is subject to such condition and has been so invested.
\n
(4)(a) The agricultural value shall cease to be applicable to agricultural property, other than crops, trees or underwood, if and to the extent that such property, or any agricultural property which directly or indirectly replaces such property— (i) is sold or compulsorily acquired within the period of 6 years after the date of the gift or the date of the inheritance, and (ii) is not replaced, within a year of the sale or within 6 years of the compulsory acquisition, by other agricultural property, and tax is chargeable in respect of the gift or inheritance as if the property were not agricultural property, but this paragraph shall not apply where the donee or successor dies before the property is sold or compulsorily acquired. (b) If an arrangement is made, in the administration of property subject to a disposition, for the appropriation of property in or towards the satisfaction of a benefit under the disposition, such arrangement is deemed not to be a sale or a compulsory acquisition for the purposes of paragraph (a). (c) The agricultural value in relation to a gift or inheritance referred to in subsection (2) shall cease to be applicable to agricultural property, other than crops, trees or underwood, if the donee or successor is not resident in the State for any of the 3 years of assessment immediately following the year of assessment in which the valuation date falls.
\n
(5)For the purposes of subsection (2), if, in the administration of property subject to a disposition, property is appropriated in or towards the satisfaction of a benefit in respect of which a person is deemed to take a gift or an inheritance under the disposition, the property so appropriated, if it was subject to the disposition at the date of the gift or at the date of the inheritance, is deemed to have been comprised in that gift or inheritance at the date of the gift or at the date of the inheritance.
\n
(6)Subsection (2) shall apply in relation to agricultural property which consists of trees or underwood as if the words “and is taken by a donee or successor who is, on the valuation date and after taking the gift or inheritance, a farmer,” were omitted from that subsection.
\n
(7)In this section, any reference to a donee or successor includes a reference to the transferee referred to in section 32
\n
(2).
\n
Chapter 2
\n
Business relief Interpretation (Chapter 2). [FA 1994 s124]
\n
Section 90
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90.—(1) In this Chapter— “agricultural property” has the meaning assigned to it by section 89 ; “associated company” has the meaning assigned to it by section 16
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(1)(b) of the Companies (Amendment) Act 1986 ; “business” includes a business carried on in the exercise of a profession or vocation, but does not include a business carried on otherwise than for gain; “excepted asset” shall be construed in accordance with section 100 ; “full-time working officer or employee”, in relation to one or more companies, means any officer or employee who devotes substantially the whole of such officer's or employee's time to the service of that company, or those companies taken together, in a managerial or technical capacity; “holding company” and “subsidiary” have the meanings assigned to them, respectively, by section 155 of the Companies Act 1963 ; “quoted”, in relation to any shares or securities, means quoted on a recognised stock exchange and “unquoted”, in relation to any shares or securities, means not so quoted; “relevant business property” shall be construed in accordance with section 93 .
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(2)In this Chapter a reference to a gift shall be construed as a reference to a taxable gift and a reference to an inheritance shall be construed as a reference to a taxable inheritance.
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(3)For the purposes of this Chapter a company and all its subsidiaries and any associated company of that company or of any of those subsidiaries and any subsidiary of such an associated company are members of a group.
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(4)In this Chapter any reference to a donee or successor is construed as including a reference to the transferee referred to in section 32
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(2).
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Application (Chapter 2) [FA 1994 s125]
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Section 91
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91.—This Chapter shall apply in relation to gifts and inheritances, but shall not apply in relation to an inheritance taken by a discretionary trust by virtue of sections 15(1) or 20(1).
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Business relief. [FA 1994 s.126]
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Section 92
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92.—Where the whole or part of the taxable value of any taxable gift or taxable inheritance is attributable to the value of any relevant business property, the whole or that part of the taxable value is, subject to the other provisions of this Chapter, treated as being reduced by 90 per cent.
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Relevant business property. [FA 1994 s127(1), (2) and (4) to (8)]
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Section 93
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93.—(1) In this Chapter and subject to the following provisions of this section and to sections 94, 96 and 100(4) “relevant business property” means, in relation to a gift or inheritance, any one or more of the following, that is: (a) property consisting of a business or interest in a business. (b) unquoted shares in or securities of a company whether incorporated in the State or otherwise to which paragraph (c) does not relate, and which on the valuation date (either by themselves alone or together with other shares or securities in that company in the absolute beneficial ownership of the donee or successor on that date) give control of powers of voting on all questions affecting the company as a whole which if exercised would yield more than 25 per cent of the votes capable of being exercised on those shares, (c) unquoted shares in or securities of a company whether incorporated in the State or otherwise which is, on the valuation date (after the taking of the gift or inheritance), a company controlled by the donee or successor within the meaning of section 27 , (d) unquoted shares in or securities of a company whether incorporated in the State or otherwise which do not fall within paragraph (b) or (c) and which on the valuation date (either by themselves alone or together with other shares or securities in that company in the absolute beneficial ownership of the donee or successor on that date) have an aggregate nominal value which represents 10 per cent or more of the aggregate nominal value of the entire share capital and securities of the company on condition that the donee or successor has been a full-time working officer or employee of the company, or if that company is a member of a group, of one or more companies which are members of the group, throughout the period of 5 years ending on the date of the gift or inheritance, (e) any land or building, machinery or plant which, immediately before the gift or inheritance, was used wholly or mainly for the purposes of a business carried on by a company of which the disponer then had control or by a partnership of which the disponer then was a partner and for the purposes of this paragraph a person is deemed to have control of a company at any time if that person then had control of powers of voting on all questions affecting the company as a whole which if exercised would have yielded a majority of the votes capable of being exercised on all such questions, (f) quoted shares in or securities of a company which, but for the fact that they are quoted, would be shares or securities to which paragraph (b), (c) or (d) would relate on condition that such shares or securities, or other shares in or securities of the same company which are represented by those shares or securities, were in the beneficial ownership of the disponer immediately prior to the disposition and were unquoted at the date of the commencement of that beneficial ownership or at 23 May 1994, whichever is the later date.
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(2)Where a company has shares or securities of any class giving powers of voting limited to either or both— (a) the question of winding-up the company, and (b) any question primarily affecting shares or securities of that class, the reference in subsection (1) to all questions affecting the company as a whole has effect as a reference to all such questions except any in relation to which those powers are capable of being exercised.
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(3)A business or interest in a business, or shares in or securities of a company, is not relevant business property if the business or, as the case may be, the business carried on by the company consists wholly or mainly of one or more of the following, that is, dealing in currencies, securities, stocks or shares, land or buildings, or making or holding investments.
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(4)Subsection (3) shall not apply to shares in or securities of a company if the business of the company consists wholly or mainly in being a holding company of one or more companies whose business does not fall within that subsection.
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(5)Any land, building, machinery or plant used wholly or mainly for the purposes of a business carried on as mentioned in subsection (1)(e) is not relevant business property in relation to a gift or inheritance, unless the disponer's interest in the business is, or shares in or securities of the company carrying on the business immediately before the gift or inheritance are, relevant business property in relation to the gift or inheritance or in relation to a simultaneous gift or inheritance taken by the same donee or successor.
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(6)The references to a disponer in subsections (1)(e) and (5) include a reference to a person in whom the land, building, machinery or plant concerned is vested for a beneficial interest in possession immediately before the gift or inheritance.
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(7)Where shares or securities are vested in the trustees of a settlement, any powers of voting which they give to the trustees of the settlement are, for the purposes of subsection (1)(e), deemed to be given to the person beneficially entitled in possession to the shares or securities except in a case where no individual is so entitled.
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Minimum period of ownership. [FA 1994 s128]
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Section 94
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94.—In relation to a gift or an inheritance, property shall not be relevant business property unless it was comprised in the disposition continuously— (a) in the case of an inheritance, which is taken on the date of death of the disponer, for a period of 2 years immediately prior to the date of the inheritance, or (b) in any other case, for a period of 5 years immediately prior to the date of the gift or inheritance, and any period immediately before the date of the disposition during which the property was continuously in the beneficial ownership of the disponer, or of the spouse of the disponer, is deemed, for the purposes of this Chapter, to be a period or part of a period immediately before the date of the gift or inheritance during which it was continuously comprised in the disposition.
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Replacements. [FA 1994 s129]
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Section 95
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95.—(1) Property shall be treated as complying with section 94 if— (a) the property replaced other property and that property, that other property and any property directly or indirectly replaced by that other property were comprised in the disposition for periods which together comprised— (i) in a case referred to at paragraph (a) of section 94 , at least 2 years falling within the 3 years immediately preceding the date of the inheritance, or (ii) in a case referred to at paragraph (b) of section 94 , at least 5 years falling within the 6 years immediately preceding the date of the gift or inheritance, and (b) any other property concerned was such that, had the gift or inheritance been taken immediately before it was replaced, it would, apart from section 94 , have been relevant business property in relation to the gift or inheritance.
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(2)In a case to which subsection (1) relates, relief under this Chapter shall not exceed what it would have been had the replacement or any one or more of the replacements not been made.
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(3)For the purposes of subsection (2) changes resulting from the formation, alteration or dissolution of a partnership, or from the acquisition of a business by a company controlled (within the meaning of section 27 ) by the former owner of the business, are disregarded.
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Succession. [FA 1994 s130]
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Section 96
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96.—For the purposes of sections 94 and 95, where a disponer became beneficially entitled to any property on the death of another person the disponer is deemed to have been beneficially entitled to it from the date of that death.
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Successive benefits. [FA 1994 s131]
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Section 97
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97.—(1) Where— (a) a gift or inheritance (in this section referred to as “the earlier benefit”) was eligible for relief under this Chapter or would have been so eligible if such relief had been capable of being given in respect of gifts and inheritances taken at that time, and (b) the whole or part of the property which, in relation to the earlier benefit was relevant business property became, through the earlier benefit, the property of the person or of the spouse of the person who is the disponer in relation to a subsequent gift or inheritance (in this section referred to as “the subsequent benefit”), and (c) that property, or part, or any property directly or indirectly replacing it, would, apart from section 94 , have been relevant business property in relation to the subsequent benefit, and (d) the subsequent benefit is an inheritance taken on the death of the disponer, then the property which would have been relevant business property but for section 94 is relevant business property notwithstanding that section.
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(2)Where the property which, by virtue of subsection (1), is relevant business property replaced the property or part referred to in subsection (1)(c), relief under this Chapter shall not exceed what it would have been had the replacement or any one or more of the replacements not been made, and section 95
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(3)shall apply with the necessary modifications for the purposes of this subsection.
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(3)Where, in relation to the earlier benefit, the amount of the taxable value of the gift or inheritance which was attributable to the property or part referred to in subsection (1)(c) was part only of its value, a like part only of the value which, apart from this subsection, would fall to be reduced under this Chapter by virtue of this section is so reduced.
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Value of business. [FA 1994 s132]
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Section 98
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98.—For the purposes of this Chapter— (a) the value of a business or of an interest in a business is taken to be its net value, (b) subject to paragraph (c), the net value of a business shall be taken to be the market value of the assets used in the business (including goodwill) reduced by the aggregate market value of any liabilities incurred for the purposes of the business, (c) in ascertaining the net value of an interest in a business, no regard is had to assets or liabilities other than those by reference to which the net value of the entire business would fall to be ascertained.
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Value of certain shares and securities. [FA 1994 s133]
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Section 99
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99.—(1) Where a company is a member of a group and the business of any other company which is a member of the group falls within section 93
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(3), then, unless that business consists wholly or mainly in the holding of land or buildings wholly or mainly occupied by members of the group whose business does not fall within section 93
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(3), the value of shares in or securities of the company is taken for the purposes of this Chapter to be what it would be if that other company were not a member of the group.
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(2)(a) In this subsection “shares” include securities and “shares in a company” include other shares in the same company which are represented by those shares. (b) Where unquoted shares in a company which is a member of a group are comprised in a gift or inheritance and shares in another company which is also a member of the group are quoted on the valuation date, the value of the first-mentioned shares is taken, for the purpose of this Chapter, to be what it would be if that other company were not a member of the group, unless those unquoted shares were in the beneficial ownership of the disponer immediately prior to the disposition and those quoted shares were unquoted— (i) at some time prior to the gift or inheritance when they were in the beneficial ownership of the disponer or a member of that group, while being a member of such group, or (ii) at 23 May 1994, whichever is the later date.
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Exclusion of value of excepted assets. [FA 1994 s134]
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Section 100
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100.—(1) In determining for the purposes of this Chapter what part of the taxable value of a gift or inheritance is attributable to the value of relevant business property, so much of the last-mentioned value as is attributable to— (a) any excepted assets within the meaning of subsection (2), or (b) any excluded property within the meaning of subsection (7), is disregarded.
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(2)An asset is an excepted asset in relation to any relevant business property if it was not used wholly or mainly for the purposes of the business concerned throughout the whole or the last 2 years of the relevant period; but where the business concerned is carried on by a company which is a member of a group, the use of an asset for the purposes of a business carried on by another company which at the time of the use and immediately prior to the gift or inheritance was also a member of that group is treated as use for the purposes of the business concerned, unless that other company's membership of the group is to be disregarded under section 99 .
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(3)The use of an asset for the purposes of a business to which section 93
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(3)relates is not treated as use for the purposes of the business concerned.
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(4)Subsection (2) shall not apply in relation to an asset which is relevant business property by virtue only of section 93
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(1)(e), and an asset is not relevant business property by virtue only of that provision unless either— (a) it was used in the manner referred to in that provision— (i) in the case where the disponer's interest in the business or the shares in or securities of the company carrying on the business are comprised in an inheritance taken on the date of death of the disponer, throughout the 2 years immediately preceding the date of the inheritance, or (ii) in any other case, throughout the 5 years immediately preceding the date of the gift or inheritance, or (b) it replaced another asset so used and it and the other asset and any asset directly or indirectly replaced by that other asset were so used for periods which together comprised— (i) in the case referred to at paragraph (a)(i), at least 2 years falling within the 3 years immediately preceding the date of the inheritance, or (ii) in any other case, at least 5 years falling within the 6 years immediately preceding the date of the gift or inheritance, but where section 97 applies paragraphs (a) and (b) are deemed to be complied with if the asset, or that asset and the asset or assets replaced by it, was or were so used throughout the period between the earlier and the subsequent benefit mentioned in that section, or throughout the part of that period during which it or they were in the beneficial ownership of the disponer or the disponer's spouse.