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).