Finance Act 2010 - Changes to Probate & Capital Acquisition Tax

Practitioners are reminded that changes relating to Probate and Capital Acquisitions Tax, introduced by Finance Act 2010, came into effect on 14 June 2010.

1. Inland Revenue Affidavit (Form CA24) – Computer Version

As a result of feedback from practitioners and representative bodies concerning the requirement to manually complete the Inland Revenue Affidavit (Form CA24) in duplicate, Revenue are now making an alternative version of the form available on the website. (Form CA24).

This alternative version of the form must be completed using a computer. Two original copies of this completed form must be printed and sworn before submission to the Probate Office.

The following points are to be noted:

• Manually completed applications must continue to be made on the paper form. You can order the paper form by calling our 24-hour telephone number 1890 30 67 06 (or 00353 1 70 23 050 for callers from outside the Republic of Ireland) and leaving your details and the number of forms you require. Alternatively, you can e-mail your name, full postal address and the number of forms you require to custform@revenue.ie
• The Probate Office will not accept forms that are manually completed using a form that has been downloaded and printed from the website.
• Photocopies will also not be accepted.
• Printed forms must be clear and legible.
• The font for completing the form is set at Verdana Upper-case. This must not be altered.
• This form can only be used where the date of death is on or after 5 December 2001. For cases with a date of death prior to 5th December 2001, relevant forms are available to download from the website.

2. CAT Return (Form IT38)

2.1 ROS Form IT38

Users of the ROS Offline Application should note that a new version of the IT38 Form is today available to download. To ensure that you have the most up to date version of this form installed, you should:

• Open the ROS Offline Application
• Select 'Download'
• Select 'Refresh'
• Scroll to the 'Form IT38'

Select the 'Upgrade' button (the 'Upgrade' button will not be available/visible if you have already downloaded the latest version of the Form IT38). When you have successfully downloaded the new version of the return you can continue preparing Forms IT38 for your clients.

If you have prepared Forms IT38 for your clients using an earlier version of the form that have not yet been filed, you should open them in ROS Offline, review the content and save them again before uploading them on ROS. This will ensure that the most up to date version of the return is used.

2.2 Return of Additional Benefits

Practitioners are reminded that where they have already filed a CAT return and the beneficiary receives another benefit, it is necessary to file a new IT38 incorporating all of the benefits received during the year. If the additional benefit was received from another disponer or from the same disponer but on a different valuation date this benefit should be added using the 'Add Disponer' button on the return.

Similarly, if a return which has been prepared and saved using the ROS Offline Application requires amendment to add an additional benefit received from another disponer or from the same disponer on a different valuation date this benefit should be added using the 'Add Disponer' button before filing the return.

2.3 Credit for CAT paid already

In ROS under the heading 'Credits Deductible', there is a box for 'CAT Already Paid'. An entry is only to be made in this box in respect of CAT paid prior to 14 June 2010. CAT paid on or after 14 June 2010 will be credited automatically against the tax due, as computed in ROS and the liability and payments will be reflected in the customer’s statement of account with Revenue.

2.4 Pay and File 2010

Practitioners are reminded of the upcoming pay and file requirement in respect of gifts and inheritances received in the 12 months ended 31 August 2010. The position as set out in eBrief 63/10 also applies to these returns.