Exemption of certain receipts

Income or gains from the following sources are exempt from Capital Acquisitions Tax (CAT):

  • compensation or damages awarded for injury or death
  • winnings from betting, lotteries, sweepstakes or games with prizes
  • payments given to reduce debt if you are bankrupt or near-bankrupt
  • an agreement by a creditor to reduce a debt from a person who is bankrupt
  • a markdown of a debt under a Debt Relief Notice or Personal Insolvency Arrangement (PIA)
  • payments made for the benefit of a dependent which could reasonably be described as normal
    maintenance and education expenses.