Following engagement with Revenue at the TALC Technical/Capital taxes forum the Capital Acquisitions Tax (CAT) Manual (Part 5) now includes clarification on the nature of the incapacity necessary for certain improvident trusts to qualify for CAT exemption.

Trusts established for the benefit of individuals who are incapable of managing their affairs by reason of improvidence can qualify for exemption. The nature of incapacity accepted by Revenue is detailed in the manual. The type of evidence that might be provided to Revenue to support a claim in this regard is also detailed.

The manual is published on the Revenue website.