Capital Acquisitions Tax Legislation

Capital Acquisitions Tax was introduced in the Capital Acquisitions Tax Act 1976 and amended in subsequent finance acts. The relevant legislation was consolidated in the Capital Acquisitions Tax Consolidation Act 2003, pdf. The guidance notes incorporate changes that have been made by Finance Acts up to and including the Finance Act, 2006.

When Capital acquisitions tax was introduced in the Capital Acquisitions Tax Act 1976, it replaced a system of death duties. Capital acquisitions tax applies to gifts taken on or after 28 February 1974 and to inheritances taken on or after 1 April 1975. The tax became a self-assessment tax in 1989.

A probate tax was imposed on estates of deceased persons in the Finance Act 1993, but that tax was
abolished in the Finance Act 2001.

The Capital Acquisitions Tax Consolidation Act 2003 is divided into 12 Parts. The main subjects of the 12 parts are as follows:

1. definitions.
2. gifts.
3. inheritances.
4. how property is to be valued for capital acquisitions tax purposes.
5. general provisions relating to gifts and inheritances.
6. dealing with returns and assessments.
7. dealing with payment of tax, interest and penalties.
8. provisions dealing with appeals.
9. exemptions from gift and inheritance tax.
10. the various reliefs, i.e. agricultural relief, business relief and other
    miscellaneous reliefs.
11. miscellaneous provisions relating to capital acquisitions tax.
12. repeals, the commencement of the Act and transitional
    provisions.

The Finance Act 2007 introduced changes regarding the dwellinghouse exemption to the Capital Acquisitions Tax Consolidation Act 2003.