Bulletin
(12 Mar 2010)
Topic: Capital Acquisitions Tax
At present section 45 of the C.A.T (Consolidation) Act 2003 provides that where a beneficiary fails to pay the CAT due, the donor or their personal representative can be secondarily liable. In addition, where CAT has not been paid, it remains a charge on the property which was gifted/inherited for a period of twelve years.
Finance Bill 2010 proposes to abolish this secondary liability to ensure that the beneficiary will have sole responsibility for paying CAT. This change will make the distribution of an estate easier for personal representatives as they will now be able to distribute the assets without requiring proof that the CAT has been discharged..
In addition, Finance Bill 2010 proposes to change the current position so that the unpaid CAT will no longer be a charge on a property for twelve years. This change is also to be welcomed as purchasers of property which had been the subject of a prior gift or inheritance will no longer be required to obtain certificates of discharge from CAT from the vendor.
It is expected that these changes will be signed into law in early April.
Finally, if you wish to discuss these proposed amendments please do not hesitate to telephone or e-mail either Patrick Donaghy or Shane Keane of this office at (01) 6794165/patrick@donaghys.ie/shane@donaghys.ie