“An Overview Of Capital Acquisitions Tax In Daily Legal Practice”

This video is for solicitors who want to stop “winging it” on CAT and start spotting issues and opportunities as a matter of routine. It covers the core CAT rules (when it applies, how gifts/inheritances are classified and aggregated, and why valuation dates, timing and territorial scope matter), then moves into the key exemptions and reliefs, property/trust structures, compliance, and the top traps that quietly create unexpected CAT bills.

Topics Covered Include:

1. CAT fundamentals (set the frame)

1. • What CAT is / when it applies
   • Gifts vs inheritances; what counts as a “benefit”
   • Valuation date vs date of gift/inheritance
   • Why timing matters (rate, threshold, pay & file)
   • Territorial scope: Irish situs property, foreign property exposure

1. Thresholds, groups, and aggregation

1. • Group A / B / C thresholds and relationships
   • Classifying beneficiaries (common grey areas)
   • Aggregation rules since 5 Dec 1991
   • Tracking prior gifts and evidence needed
   • 80% filing trigger and mandatory filing cases
   • Recent Budget threshold changes

1. Exemptions every solicitor should have on autopilot

1. • Spouse / civil partner exemption
   • Small Gift Exemption (€3,000 per disponer per year)
   • Dwelling House Exemption
   • Other practical exemptions relevant to estates and family transfers

1. The “big three” reliefs (deep dive + case studies)

1. • Agricultural Relief

1. • • What qualifies as agricultural property
     • Farmer test / active farmer vs leasing
     • Clawback risks and compliance

1. • Business Relief

1. • • Trading vs investment businesses
     • Excepted assets
     • Holding period and clawback triggers

1. • Favourite Nephew/Niece & Foster Child reliefs

1. • • When they apply
     • How they interact with thresholds

1. • Worked examples showing full CAT computation

1. Valuation issues & property transfers

1. • Market value rules and Revenue expectations
   • Joint ownership and apportionment
   • Life interests / limited interests valuation
   • Development land / hope value issues
   • CAT–CGT interaction on inherited or gifted property

1. Trusts, life interests, and estate structures

1. • CAT treatment of bare, fixed and discretionary trusts
   • When beneficiaries are treated as taking the benefit
   • Life tenancy / limited interest clauses in wills
   • Appointments/advancements and re-triggering CAT
   • Drafting pitfalls that create extra CAT

1. Compliance, pay & file, and Revenue practice

1. • Pay & file dates and return process (IT38)
   • Interest, surcharges, and penalty exposure
   • Record-keeping expectations
   • Audit hot spots (reliefs, valuations, residency/domicile)
   • Appeals / correction routes

1. Planning strategies solicitors can suggest confidently

1. • Systematic use of Small Gift Exemption
   • Lifetime gifting vs testamentary planning
   • Section 72 policies (mechanics and use-cases)
   • Farm/business succession aligned with relief conditions
   • Planning for blended families/cohabitants and Group C risk
   • Using trusts appropriately (and safely)

1. “Top 10 traps”

1. • Wrong beneficiary group / relationship classification
   • Missing old gifts → aggregation surprises
   • Relief claimed but conditions not met → clawback
   • Dwelling House Exemption lost post-inheritance
   • Foreign assets/residency issues overlooked
   • Weak valuations or missing evidence
   • Accidental life interests through drafting
   • Excepted assets spoiling Business Relief
   • Timing errors around valuation date
   • Assuming the estate pays CAT (beneficiary liability)

Speakers

Neil Mulcahy is a Chartered Accountant and a Chartered Tax Consultant with over 20 years in practice. In particular, he has extensive experience in dealing with Revenue audits, advising clients under all tax heads and implementing efficient tax plans.

John Bainbridge is an AITI Chartered Tax Advisor with over 15 years in practice.  He provides Irish personal tax services across income tax, CGT, & CAT.  John provides tax advice and compliance services to non-resident landlords.  He also assists executors & solicitors throughout the clearance process for non-resident vendors and non-resident beneficiaries.

Category of CPD:	Category A (General)
Duration:	1.8 Hours