CAT Flashcards
what are the two events that lead to CAT
gift
inheritance
who is a disponer
person making gift/inheritance
who is donor
person making gift
who is donee
person receiving gift
who is successor
person receiving inhertiance
who is beneficiary
person receiving gift/inhertiance
who is included in group A threshold
child
minor of deceased child
favourite niece/nephew
who is included in group B
parent, brother, sister, niece, nephew, grandparent, grandchild
who is included in group c
everyone else
in laws
cousins
divorced couples
CAT rate
33%
small gift exemption annual amount
3000
from what date are benefits received aggregated for the lifetime limits
after 5 december 1991
definition of a gift
a person becomes beneficially entitled in possession of the benefit
what does beneficially entitiled in possession mean
the person can make use of and enjoy the property today as opposed to having the future right to do so
ie does not apply for gifts with conditions ie. when you pass your exams, you will be gifted x amount
what is a limited interest on a gift
benefit only lasts for a certain period of time
eg father gifts daughter house while she is studying in university
if the doner is not a resident, and the donee is, will CAT be charged
yes
if the doner is not a resident nor is the donee, will CAT be charged
only if an irish asset
examples of irish assets for CAT
land in ireland
money in an irish bank
what is the incumbrance free value
the MV of gift/inheritance less liabilities/costs
what is the taxable value
incumbrance free value less any consideration paid
examples of allowable deductions to get to the incumbrance free value
legal fees
admin costs
stamp duty
future debts/liabilities (DISCOUNTED TO PRESENT VALUE)
if there is a contingent liability, is this allowable deduction
no
only certain liabilities are deductible
in the case where it does become a liability, CAT can be recalculated and a refund can be given
is there CAT between spouses
no
is there CAT between spouses
no
