Capital Acquisitions Tax Consolidation Act 2003 (Number 1 of 2003)
82 Exemption of certain receipts.
[CATA 1976 s58]
(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;
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(ba) any payment to which section 205A of the Taxes Consolidation Act 1997 applies;
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(bb) the receipt by a person of any payment made by or on behalf of the Minister for Health under the COVID-19 Death in Service Ex-Gratia Scheme for Health Care Workers (that is to say the scheme administered under that title by the Minister for Health in furtherance of a decision of the Government of 8 March 2022);
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(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;
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(c) the receipt by a person of any winnings bona fide, in money or money’s worth, from—
(i) betting (including pool betting), or
(ii) any lottery, sweepstake or game with prizes;
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(ca) the receipt by a person of an award from the competition ‘Your Country, Your Call’ which was launched by the President on 17 February 2010,
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(cb) any benefit arising out of the discharge of a debt under a Debt Relief Notice (within the meaning of section 25 of the Personal Insolvency Act 2012) or arising out of the discharge or reduction in the amount of a debt under a Debt Settlement Arrangement or a Personal Insolvency Arrangement (both within the meaning of section 2 of that Act) other than by reason of payment of that debt;
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(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.
(2) Notwithstanding anything contained in this Act, the receipt in the lifetime of the disponer of money or money’s worth—
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(a) by—
(i) the [2]>spouse or child<[2][2]>spouse, civil partner, child or child of the civil partner<[2] of the disponer, or
(ii) a person in relation to whom the disponer stands in loco parentis,
for support, maintenance or education, or
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(a) by—
(i) a minor child of the disponer or of the civil partner of the disponer, or
(ii) a child of the disponer, or of the civil partner of the disponer, who is more than 18 years of age but not more than 25 years of age and is receiving full-time education or instruction at any university, college, school or other educational establishment, or who, regardless of age, is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself, or
(iii) a person in relation to whom the disponer stands in loco parentis,
for support, maintenance or education, or
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(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.
(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.
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(4) The receipt by [3]>a minor child<[3][3]>a minor child or a minor child of the civil partner<[3] 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 [4]>that minor child<[4][4]>that minor child or minor child of the civil partner<[4] 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.
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(4) The receipt by—
(a) a minor child of the disponer or of the civil partner of the disponer, or
(b) a child of the disponer, or of the civil partner of the disponer, who is more than 18 years of age but not more than 25 years of age and is receiving full-time education or instruction at any university, college, school or other educational establishment, or who, regardless of age, is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself,
of money or money’s worth for support, maintenance or education, at a time when the disponer and the other parent of any such minor child or child of the disponer are dead or, in the case of any such minor child or child of the civil partner of the disponer, when the disponer and the civil partner are dead, is not a gift or an inheritance where the provision of such support, maintenance or education—
(i) is such as would be part of the normal expenditure of a person in the circumstances of the disponer immediately before the death of the disponer, and
(ii) is reasonable having regard to the financial circumstances of the disponer immediately before the death of the disponer.
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(5) The references in subsections (2) and (4) to a child receiving full-time education or instruction at an educational establishment shall include references to a child undergoing training by any person (in subsection (6) referred to as ‘the employer’) for any trade or profession in such circumstances that the child is required to devote the whole of his or her time to such training for a period of not less than 2 years.
(6) For the purposes of this section, in the case of a child undergoing training, the Commissioners may require the employer to furnish such particulars as they may reasonably require with respect to the training of the child in such form as may be prescribed by the Commissioners.
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[2]
Substituted by F(No.3)A11 sched3(16). Deemed to have come into operation as respects a gift or an inheritance taken on or after 1 January 2011.
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Substituted by F(No.3)A11 sched3(17). Deemed to have come into operation as respects a gift or an inheritance taken on or after 1 January 2011.
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Substituted by F(No.3)A11 sched3(18). Deemed to have come into operation as respects a gift or an inheritance taken on or after 1 January 2011.
[5]
Inserted by FA13 s100(2). Applies to gifts and inheritances (both within the meaning of the Capital Acquisitions Tax Consolidation Act 2003) taken on or after 27 March 2013.
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Inserted by F(No.2)A13 s77(2). Applies to payments to which section 205A of the Taxes Consolidation Act 1997 applies made on or after 1 August 2013.