Revenue E-Brief Issue 109/2014, 24 December 2014
Capital Acquisitions Tax (CAT) is a tax that imposes a charge on individuals who receive gifts and inheritances where the value of the gifts and inheritances exceed that individual's lifetime tax-free threshold.
Section 82, of the Capital Acquisitions Tax Act 2003 exempts from CAT money or money's worth given by an individual ("the disponer&) during his or her lifetime for the support, maintenance or education of his or her children, his or her civil partner’s children or a person in relation to whom he or she stands in loco parentis, as well as payments for the support or maintenance of a dependent relative under section 466, TCA 1997.
Section 81 Finance Act 2014 has amended section 82 to confine the exemption of receipts by children (including orphaned children) for the provision of support, maintenance or education to receipts by:
Revenue's CAT Manual - Part 23 contains a Guide to the CAT Treatment of Receipts by Children from their Parents for their Support, Maintenance or Education for CAT purposes. The Guide is also available on Revenue's website under Taxes and Duties-CAT leaflets.
24 December 2014