Capital Acquisitions Tax Consolidation Act 2003 (Number 1 of 2003)
36 Dispositions involving powers of appointment.
[CATA 1976 s27]
(1) Where, by virtue of or in consequence of the exercise of, or the failure to exercise, or the release of, a general power of appointment by any person having such a power, a person becomes beneficially entitled in possession to any benefit, then, for the purposes of this Act, the disposition is the exercise of, or the failure to exercise, or the release of, the power and not the disposition under which the power was created, and the person exercising, or failing to exercise, or releasing, the power is the disponer.
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(1A) In subsections (1B) and (1C) ‘arrangement’ includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
(1B) Notwithstanding subsection (1), where the exercise of, failure to exercise, or release of, a general power of appointment form part of an arrangement the main purpose or one of the main purposes of which is the avoidance of tax, tax shall be chargeable as if the disposition were the disposition under which the power was created and the person who created the power were the disponer.
(1C) Where the grant of a general power of appointment in or over property to any person forms part of an arrangement the main purpose or one of the main purposes of which is the avoidance of a charge to tax arising under sections 15(1) or 20(1), the grant of that general power of appointment shall not prejudice any such charge to tax.
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(2) Where, by virtue of or in consequence of the exercise of, or the failure to exercise, or the release of, a special power of appointment by any person having such a power, a person becomes beneficially entitled in possession to any benefit, then, for the purposes of this Act, the disposition is the disposition under which the power was created and the person who created the power is the disponer.
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Inserted by FA12 s112(1). Applies to gifts and inheritances (including inheritances referred to in sections 15(1) and 20(1)) taken on or after 8 February 2012.