Revenue has published new guidance outlining the rules for determining when an interest in a life assurance policy is deemed to become an interest in possession for the purposes of Capital Acquisitions Tax (CAT). The relevant rules as set out in section 41 CATCA 2003 together with details of the changes introduced by Finance Act 2025 are included in the new guidance.
Finance Act 2025 introduced a new subsection 1(A) to section 41 CATCA 2003 to provide that, where a person, having received a gift or inheritance of an assurance policy, disposes of their interest in the policy before it matures or is surrendered for consideration, a charge to CAT will arise at the time of the disposal. The new subsection applies from 1 January 2026.
LOADING...