Capital Acquisitions Tax – Pay & File Date Reverts to 31 October

The pay and file date for CAT will be 31 October each year for gifts and inheritances which have a valuation date falling in the 12 month period ending on the previous 31 August (section 102). Finance Act 2011 had brought forward the pay and file date to 30 September, however, to “alleviate potential difficulties for taxpayers where an inheritance takes places close to the pay and file date” (though more likely to correct the 2011 oversight) the date was reversed to 31 October.

Agricultural Relief

To comply with EU Treaty provisions, the condition that a “farmer” for the purpose of agricultural relief must be resident in Ireland for three years following the gift has been removed (section 100). Section 100 also provides that a loan against a principal private residence will only be allowed as a deduction for purpose of the relief where the loan is used to purchase, repair or improve the residence.