Revenue eBrief No. 109/14 clarifies the Finance Act 2014 amendments to the capital acquisitions tax (CAT) treatment of payments to children for the provision of support, maintenance or education from their parents.

Section 82 of the Capital Acquisitions Tax Consolidation Act 2003 is amended to confine the CAT exemption to payments received by a:

• a minor child of the disponer or of the civil partner of the disponer or,
• 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 who is receiving full-time education or instruction at any university, college, school or other educational establishment, or
• a child of the disponer or of the civil partner of the disponer who, regardless of age, is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself.

Further information is set out in Revenue eBrief No. 109/14 which you can read on here.