22 Exemptions

Summary

This section exempts from the 1% annual discretionary trust tax charge trusts, property and inheritances which are exempted from the once-off 6% discretionary trust tax charge.

Details

The scheme of the section is to apply to discretionary trusts the same exemptions from the 1% annual charge as are available in relation to the once-off 6% charge. Those exemptions arose under section 17(1) and (2).

The trusts which are exempt from the charge to discretionary trust tax are as follows:

• trusts which are created exclusively for public or charitable purposes in the State or Northern Ireland,
• trusts created in connection with superannuation schemes,
• unit trust schemes within the meaning of the Unit Trusts Act 1990,
• trusts created for the benefit of one or more named individuals who are, because of age or improvidence, or of physical, mental or legal incapacity, incapable of managing his/her/their affairs, and
• trusts created exclusively for the upkeep of heritage houses and gardens referred to in section 77(6) of the Act i.e. houses and gardens situated in the State and not held for the purpose of trading which—
  are of national, scientific, historic or artistic interest, and
  are open to the public.

For details regarding these exemptions, see notes on section 17.

Relevant Date: Finance Act 2015