Capital Acquisitions Tax Manuals updated

Dec 07, 2020

Revenue published updated Capital Acquisitions Tax Manuals, which include updates in relation to valuation dates, contingent events and qualifying expenses of incapacitated persons.

  • Valuation date

A new paragraph 8.2.2 has been added to Part 8 to provide guidance on determining the valuation date where a benefit transfers on a death but not as part of the administration of an estate (section 30).

  • Contingencies affecting gifts or inheritances

Explanatory material has been added to Part 16 as context for the example given in relation to the revision of a CAT liability following the occurrence of a contingent event (section 29).

  • Exemption relating to qualifying expenses of incapacitated individuals

Paragraph 22.2 in Part 22 has been updated to clarify Revenue's position following an Appeal Commissioner's determination in relation to the treatment of qualifying expenses of incapacitated persons (section 84). Revenue's position following TAC determination 32TACD2019 unchanged within the Manual. We understand from representations made by Revenue at recent TALC Direct and Capital meetings that where a similar determination arouse it would be appealed to the High Court.

Revenue eBrief 217/70 confirmed the above updates.