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Credits you can claim against Capital Acquisitions Tax (CAT)

  1. Overview
  2. Credit for Capital Gains Tax (CGT)
  3. Credit for double taxation
  4. Double Taxation Relief (UK)
  5. Double Taxation Relief (US)
  6. Unilateral relief
  7. Prior CAT on the same event

Prior CAT on the same event

A person may gift or bequeath property to a life tenant. A life tenant has a limited interest, which ends on the death of the life tenant. A third party may then inherit the property absolutely. The third party, known as the remainderman, becomes liable to CAT on the death of the life tenant.

Some limited interests do not run their full course. This results in the breakup of a settlement. When this happens, there may be more than one charge to CAT on the same property on the same event. The tax which is due first is allowed as a credit against the tax which becomes due at a later date.

Circumstances giving rise to a double charge to CAT on the same property on the same event are:

  • the remainderman disposes of their future interest in the property to a third party before the death of the life tenant
  • the life tenant releases the limited interest to the remainderman
  • the remainderman releases their interest to the life tenant
  • the remainderman and the life tenant divide the property between them.

How do you claim the credit?

To claim the credit, you need to file a CAT return online through Revenue Online Service (ROS) or myAccount. 

Published: 28 March 2023 Print this page

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