Capital Acquisitions Tax – Discretionary Trust Tax

The Finance Act 2012 introduced a number of amendments to Discretionary Trust Tax. The following amendments apply to discretionary trusts created by a person’s will where that person died on or after 8 February 2012:

• Where a discretionary trust is provided for in a will, the trust is to be treated for DTT purposes as constituted from the date of the disponer’s death.
• The trigger date for the initial charge to DTT (6%) and for the ongoing annual 1% charges has been brought forward from the date of the Grant of Probate to the date of the disponer’s death.
• Discretionary Trust Tax has been extended to cover “foundations” (the European equivalent of trusts).

Part 5 of the Capital Acquisitions Tax Manual has been updated to take account of these amendments.

The manual is available for viewing on the Revenue Website under: Taxes and Duties - Capital Acquisitions Tax – Tax & Duty Manuals.