Capital Acquisitions Tax Consolidation Act 2003

• (3) Interest is payable under section 51 on any surcharge as if the surcharge were tax, and the surcharge and any interest on that surcharge is chargeable and recoverable as if the surcharge and that interest were part of the tax.

• (4) Any person aggrieved by the imposition on that person of a surcharge under this section in respect of any asset may, within 30 days of the notification to that person of the amount of such surcharge, appeal to the Appeal Commissioners against the imposition of such surcharge on the grounds that, having regard to all the circumstances, there were sufficient grounds on which that person might reasonably have based that person's estimate of the market value of the asset.

• (5) The Appeal Commissioners shall hear and determine an appeal to them under subsection (4) as if it were an appeal to them against an assessment to tax, and the provisions of section 67 relating to an appeal or to the rehearing of an appeal or to the statement of a case for the opinion of the High Court on a point of law shall, with any necessary modifications, apply accordingly.

TABLE

Estimate of the market value of the asset in the return, expressed as a percentage of the ascertained value of that asset	Surcharge
(1)	(2)
Equal to or greater than 0 per cent but less than 40 per cent	30 per cent
Equal to or greater than 40 per cent but less than 50 per cent	20 per cent
Equal to or greater than 50 per cent but less than 67 per cent	10 per cent

54 Payment of tax by instalments. [CATA 1976 s43]

54.—(1) Subject to the payment of interest in accordance with section 51 and to the provisions of this section, the tax due and payable in respect of a taxable gift or a taxable inheritance may, at the option of the person delivering the return or additional return, be paid by 5 equal yearly instalments, the first of which is due at the expiration of 12 months from the date on which the tax became due and payable and the interest on the unpaid tax shall be added to each instalment and shall be paid at the same time as such instalment.

• (2) An instalment not due may be paid at any time before it is due.

• (3) In any case where and to the extent that the property of which the taxable gift or taxable inheritance consists is sold or compulsorily acquired, all unpaid instalments shall, unless the interest of the donee or successor is a limited interest, be paid on completion of the sale or compulsory acquisition and, if not so paid, shall be tax in arrear.

• (4) This section shall not apply in any case where and to the extent to which a taxable gift or a taxable inheritance consists of personal property in which the donee, or the successor, or the transferee referred to in section 32(2), as the case may be, takes an absolute interest.

• (5) In any case where the interest taken by a donee or a successor is an interest limited to cease on that person's death, and that person's death occurs before all the instalments of the tax in respect of the taxable gift or taxable inheritance would have fallen due if such tax were being paid by instalments, any instalment of such tax which would not have fallen due prior to the date of the death of that donee or successor shall cease to be payable, and the payment, if made, of any such last-mentioned instalment is treated as an overpayment of tax for the purposes of section 57.

55 Payment of tax on certain assets by instalments. [FA 1995 s164]

55.—(1) In this section—

“agricultural property” has the meaning assigned to it by section 89;

“relevant business property” has the same meaning as it has in section 93, other than shares in or securities of a company (being shares or securities quoted on a recognised stock exchange) and without regard to sections 94 and 100(4).

• (2) Where the whole or part of the tax which is due and payable in respect of a taxable gift or taxable inheritance is attributable to either or both agricultural property and relevant business property—

• (a) section 54 shall apply to that whole or part of the tax notwithstanding subsection (3) or (4) of that section but where all or any part of that agricultural property or relevant business property, or any property which directly or indirectly replaces such property, is sold or compulsorily acquired and, by virtue of subsection (4) of section 89 or section 101, that sale or compulsory acquisition causes the taxable value of such a taxable gift or taxable inheritance to be increased, or would cause such increase if subsection (2) of section 89 or section 92 applied, all unpaid instalments referable to the property sold or compulsorily acquired shall, unless the interest of the donee or successor is a limited interest, be paid on completion of that sale or compulsory acquisition and, if not so paid, shall be tax in arrear, and

• (b) notwithstanding subsection (2) of section 51 the rate at which interest is payable on that whole or part of the tax is 0.75 per cent or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month instead of at the rate specified in that section and that section shall apply as regards that whole or part of the tax as if the rate so payable were substituted for the rate specified in that section, but the rate at which interest is payable on any overdue instalment of that whole or part of the tax, or on such part of the tax as would represent any such overdue instalment if that whole or part of the tax were being paid by instalments, shall continue to be at the rate specified in section 51.

• (3) For the purposes of this section reference to an overdue instalment in paragraph (b) of subsection (2) is a reference to an instalment which is overdue for the purposes of section 54 (as it applies to this section) or for the purposes of paragraph (a) of subsection (2).

• (4) For the purposes of this section the value of a business or of an interest in a business shall be taken to be its net value ascertained in accordance with section 98.

• (5) This section shall not apply in relation to an inheritance taken by a discretionary trust by virtue of section 15(1) or section 20(1).

• (6) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done under that regulation.

56 Payment of inheritance tax by transfer of securities. [CATA 1976 s45]

56.—Section 22 of the Finance Act 1954 (which relates to the payment of death duties by the transfer of securities to the Minister for Finance) and the regulations made under that Act shall apply, with any necessary modifications, to the payment of inheritance tax by the transfer of securities to the Minister for Finance, as they apply to the payment of death duties by the transfer of securities to the Minister for Finance.

57 Overpayment of tax. [CATA 1976 s46]

57.—(1) Where, on application to the Commissioners for relief under this section, it is proved to their satisfaction that an amount has been paid in excess of the liability for tax or for interest on tax, they shall give relief by means of repayment of the excess or otherwise as is reasonable and just; and any such repayment shall carry simple interest (not exceeding the amount of such excess), at the rate of 0.0161 per cent or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each day or part of a day from the date on which the payment was made, and income tax is not to be deductible on payment of interest under this section and such interest is not to be reckoned in computing income for the purposes of the Tax Acts.

• (2) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done under that regulation.

58 Penalties. [CATA 1976 s63]

58.—(1) (a) Any person who contravenes or fails to comply with any requirement or provision under section 46 shall be liable to a penalty of €2,535.

• (b) Where the contravention or failure referred to in paragraph (a) continues after judgment has been given by the court before which proceedings for the penalty have been commenced, the person concerned shall be liable to a further penalty of €30 for each day on which the contravention or failure so continues.

• (2) Where, under, or for the purposes of, any of the provisions of this Act, a person is authorised to inspect any property for the purpose of reporting to the Commissioners the market value of that property and the person having custody or possession of that property prevents such inspection or obstructs the person so authorised in the performance of that person's functions in relation to the inspection, the person so having custody or possession is liable to a penalty of €1,265.

• (3) Where an accountable person fraudulently or negligently—

• (a) delivers any incorrect return or additional return,

• (b) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any property comprised in any disposition,

• (c) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any claim for any allowance, deduction, exemption or relief, or

• (d) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any other matter,

on the basis of which the amount of tax assessable in respect of a taxable gift or taxable inheritance would be less than it would have been if the correct return, additional return, statement, declaration, evidence or valuation had been delivered, made or furnished, that person is liable to a penalty of—

• (i) €6,345, and

• (ii) the amount, or in the case of fraud, twice the amount, of the difference specified in subsection (5).

• (4) Where any such return, additional return, statement, declaration, evidence or valuation as is mentioned in subsection (3) was delivered, made or furnished neither fraudulently nor negligently by a person and it comes to that person's notice that it was incorrect, then, unless the error is remedied without unreasonable delay, such matter is treated, for the purposes of this section, as having been negligently done by that person.

• (5) The difference referred to in subsection (3) is the difference between—

• (a) the amount of tax payable in respect of the taxable gift or taxable inheritance to which the return, additional return, statement, declaration, evidence or valuation relates, and

• (b) the amount which would have been the amount so payable if the return, additional return, statement, declaration, evidence or valuation as made or submitted had been correct.

• (6) For the purpose of subsection (3), where anything referred to in that subsection is delivered, made or furnished on behalf of a person, it is deemed to have been delivered, made or furnished by that person unless that person proves that it was done without that person's knowledge or consent.

• (7) Any person who assists in or induces the delivery, making or furnishing for any purposes of the tax of any return, additional return, statement, declaration, evidence or valuation which that person knows to be incorrect shall be liable to a penalty of €1,265.

• (8) This section shall not affect any criminal proceedings.

• (9) Subject to this section, sections 987(4), 1061, 1062, 1063, 1064, 1065, 1066 and 1068 of the Taxes Consolidation Act 1997, shall, with any necessary modifications, apply to a penalty under this Act as if the penalty were a penalty under the Income Tax Acts.

59 Postponement, remission and compounding of tax. [CATA 1976 s44]

59.—(1) Where the Commissioners are satisfied that tax leviable in respect of any gift or inheritance can not without excessive hardship be raised at once, they may allow payment to be postponed for such period, to such extent and on such terms (including the waiver of interest) as they think fit.

• (2) If, after the expiration of the relevant period immediately following the date on which any tax became due and payable, the tax or any part of that tax remains unpaid, the Commissioners may, if they think fit, remit the payment of any interest accruing after such expiration on the unpaid tax; and in this subsection, “relevant period” means the period at the end of which the interest on an amount payable in respect of tax would, at the rate from time to time chargeable during that period in respect of interest on tax, equal the amount of such tax.

• (3) If, after the expiration of 20 years from the date on which any tax became due and payable, the tax or any part of that tax remains unpaid, the Commissioners may, if they think fit, remit the payment of such tax or any part of that tax and all or any interest on that tax.

• (4) Where, in the opinion of the Commissioners, the complication of circumstances affecting a gift or inheritance or the value of that gift or inheritance or the assessment or recovery of tax on that gift or inheritance are such as to justify them in doing so, they may compound the tax payable on the gift or inheritance on such terms as they shall think fit, and may give a discharge to the person or persons accountable for the tax on payment of the tax according to such composition.

60 Tax to be a charge. [CATA 1976 s47]

60.—(1) Tax due and payable in respect of a taxable gift or a taxable inheritance shall, subject to this section, be and remain a charge on the property (other than money or negotiable instruments) of which the taxable gift or taxable inheritance consists at the valuation date and the tax shall have priority over all charges and interests created by the donee or successor or any person claiming in right of the donee or successor or on that donee or successor's behalf, but where any settled property comprised in any taxable gift or taxable inheritance shall be subject to any power of sale, exchange, or partition, exercisable with the consent of the donee or successor, or by the donee or successor with the consent of another person, the donee or successor shall not be precluded by the charge of tax on that donee or successor's taxable gift or taxable inheritance from consenting to the exercise of such power, or exercising any power with proper consent, as the case may be; and where any such power is exercised, the tax shall be charged on the property acquired, in substitution for charging it on the property previously comprised in the gift or inheritance, and on all moneys arising from the exercise of any such power, and on all investments of such moneys.

• (2) Property comprised in a taxable gift or taxable inheritance shall not, as against a bona fide purchaser or mortgagee for full consideration in money or money's worth, or a person deriving title from or under such a purchaser or mortgagee, remain charged with or liable to the payment of tax after the expiration of 12 years from the date of the gift or the date of the inheritance.

• (3) Tax shall not be a charge on property under subsection (1) as against a bona fide purchaser or mortgagee of such property for full consideration in money or money's worth without notice, or a person deriving title from or under such a purchaser or mortgagee.

61 Receipts and certificates. [CATA 1976 s48]

61.—(1) When any amount in respect of tax is paid, the Commissioners shall give a receipt for the payment.

• (2) The Commissioners shall, on application to them by a person who has paid the tax in respect of any property comprised in any taxable gift or taxable inheritance, give to the person a certificate, in such form as they think fit, of the amount of the tax paid by that person in respect of that property.

• (3) The Commissioners shall, on application to them by a person who is an accountable person in respect of any of the property of which a taxable gift or taxable inheritance consists, if they are satisfied that the tax charged on the property in respect of the taxable gift or taxable inheritance has been or will be paid, or that there is no tax so charged, give a certificate to the person, in such form as they think fit, to that effect.

• (4) Where a person who is an accountable person in respect of the property of which a taxable gift or taxable inheritance consists has—

• (a) delivered to the Commissioners, a full and true return of all the property comprised in the gift or inheritance on the valuation date and such particulars as may be relevant to the assessment of tax in respect of the gift or inheritance,

• (b) made on that return an assessment of such amount of tax as, to the best of that person's knowledge, information and belief, ought to be charged, levied and paid, and

• (c) duly paid the amount of such tax (if any),

the Commissioners may give a certificate to the person, in such form as they think fit, to the effect that the tax charged on the property in respect of the taxable gift or taxable inheritance has been paid or that there is no tax so charged.

• (5) A certificate referred to in subsection (3) or (4) shall discharge the property from liability for tax (if any) in respect of the gift or inheritance, to the extent specified in the certificate, but shall not discharge the property from tax in case of fraud or failure to disclose material facts and, in any case, shall not affect the tax payable in respect of any other property or the extent to which tax is recoverable from any accountable person or from the personal representatives of any accountable person, but a certificate purporting to be a discharge of the whole tax payable in respect of any property included in the certificate in respect of a gift or inheritance shall exonerate from liability for such tax a bona fide purchaser or mortgagee for full consideration in money or money's worth without notice of such fraud or failure and a person deriving title from or under such a purchaser or mortgagee.

• (6) Subject to subsection (7), where tax is chargeable on the taxable value of a taxable gift or taxable inheritance and—

• (a) application is made to the Commissioners by any person (in this section referred to as “the applicant”)—

• (i) who is a person accountable, but not primarily accountable, for the payment of the whole or part of the tax, or

• (ii) who is the personal representative of any person referred to in subparagraph (i),

and

• (b) the applicant—

• (i) delivers to the Commissioners a full and true return of all the property comprised in the gift or inheritance and such particulars as may be relevant to the assessment of tax in respect of the gift or inheritance, and

• (ii) makes on that return an assessment of such amount of tax as, to the best of that person's knowledge, information and belief, ought to be charged, levied and paid,

the Commissioners may, on payment of the tax assessed by the applicant, give a certificate to the applicant which shall discharge the applicant from any other claim for tax in respect of the gift or inheritance.

• (7) A certificate by the Commissioners under subsection (6) shall not discharge the applicant in the case of fraud or failure to disclose material facts within that applicant's own knowledge and shall not affect any further tax that may be payable by the applicant if any further property is afterwards shown to have been comprised in the taxable gift or taxable inheritance to which the certificate relates and in respect of which further property the applicant is liable for the tax.

62 Certificate relating to registration of title based on possession. [FA 1994 s146]

62.—(1) In this section—

“the Act of 1964” means the Registration of Title Act 1964;

“the Registrar” means the Registrar of Titles;

“relevant period”, in relation to a person's application to be registered as owner of property, means the period commencing on 28 February 1974 and ending on the date as of which the registration was made, but—

• (a) where the certificate referred to in subsection (2) is a certificate for a period ending prior to the date of the registration, the period covered by the certificate shall be deemed to be the relevant period if, at the time of the registration, the Registrar had no reason to believe that a death relevant to the application for registration occurred after the expiration of the period covered by the certificate, and

• (b) where the registration of the person (if any) who, at the date of that application, was the registered owner of the property had been made as of a date after 28 February 1974, the relevant period shall commence on the date as of which that registration was made;

“the Rules of 1972” means the Land Registration Rules 1972 (S.I. No. 230 of 1972).

• (2) A person shall not be registered as owner of property in a register of ownership maintained under the Act of 1964 on foot of an application made to the Registrar on or after the date of the passing of this Act which is—

• (a) based on possession, and

• (b) made under the Rules of 1972, or any other rule made for carrying into effect the objects of the Act of 1964,

unless the applicant produces to the Registrar a certificate issued by the Commissioners to the effect that the Commissioners are satisfied—

• (i) that the property did not become charged with gift tax or inheritance tax during the relevant period, or

• (ii) that any charge for gift tax or inheritance tax to which the property became subject during that period has been discharged, or will (to the extent that it has not been discharged) be discharged within a time considered by the Commissioners to be reasonable.

• (3) In the case of an application for registration in relation to which a solicitor's certificate is produced for the purpose of rule 19(3), 19(4) or 35 of the Rules of 1972, the Registrar may accept that the application is not based on possession if the solicitor makes to the Registrar a declaration in writing to that effect.

• (4) Where, on application to them by the applicant for registration, the Commissioners are satisfied that they may issue a certificate for the purpose of subsection (2), they shall issue a certificate for that purpose, and the certificate and the application for that certificate shall be on a form provided by the Commissioners.

• (5) A certificate issued by the Commissioners for the purpose of subsection (2) shall be in such terms and subject to such qualifications as the Commissioners think fit, and shall not be a certificate for any other purpose.

• (6) In subsection (2), the reference to a certificate issued by the Commissioners shall be construed as including a reference to a certificate to which subsection (7) relates, and subsection (2) shall be construed accordingly.

• (7)
• (a) In this subsection—

“the relevant particulars” means the particulars of title to the relevant property which are required to be produced to the Registrar for the purposes of paragraph 2 of Form 5 of the Schedule of Forms referred to in the definition of “Forms” contained in rule 2(1) of the Rules of 1972;

“the relevant property” means the property in respect of which the application for registration is being made.

• (b) A certificate to which this subsection relates is a certificate by the solicitor for the applicant for registration in which it is certified, on a form provided by the Commissioners, that the solicitor—

• (i) is satisfied—

• (I) in a case where the applicant is a statutory authority within the definition of “statutory authority” contained in section 3(1) of the Act of 1964, that the market value of the relevant property at the time of the application does not exceed €127,000, or

• (II) in any other case, that—

• (A) the area of the relevant property does not exceed 5 hectares, and

• (B) the market value of the relevant property at the time of the application does not exceed €19,050,

and

• (ii) having investigated the title to the relevant property, has no reason to believe that the relevant particulars, in so far as relating to the relevant property at any time during the relevant period, are particulars which related at that time to significant other real property, that is, real property which, if combined with the relevant property for the purposes of subparagraph (i), would cause a limit which applies to the relevant property by virtue of that subparagraph to be exceeded.

• (8) Notwithstanding subsection (7), a certificate by the solicitor for the applicant for registration shall be a certificate to which subsection (7) relates if it certifies, on a form provided by the Commissioners, that the solicitor is satisfied that—

• (a) the area of the property in respect of which the application for registration is being made does not exceed 500 square metres,

• (b) the market value of that property at the time of the application does not exceed €2,540, and

• (c) the application is not part of a series of related applications covering a single piece of property the total area of which exceeds 500 square metres or the market value of which at the time of the application exceeds €2,540.

63 Recovery of tax and penalties. [CATA 1976 s49]

63.—(1) Any sum due and payable in respect of tax or interest on such tax and any penalty incurred in connection with tax or interest on such tax is deemed to be a debt due by the accountable person or, if that person is dead, by that person's personal representative, to the Minister for Finance for the benefit of the Central Fund and is payable to the Commissioners and may (without prejudice to any other mode of recovery of such tax and interest) be sued for and recovered by action, or other appropriate proceeding, at the suit of the Attorney General or the Minister for Finance or the Commissioners in any court of competent jurisdiction, notwithstanding anything to the contrary contained in the Inland Revenue Regulation Act 1890.

• (2) Any person who, having received any sum of money as or for any tax, interest, or penalty under this Act, does not apply the money to the due payment of the tax, interest or penalty, and improperly withholds or detains the same, is accountable for the payment of the tax, interest or penalty to the extent of the amount so received by that person and the same is a debt due by that person to the Minister for Finance for the benefit of the Central Fund and is recoverable in like manner as a debt under subsection (1).

• (3) If any accountable person is liable under section 46 to deliver to the Commissioners a return or an additional return and makes default in so doing, the Attorney General or the Minister for Finance or the Commissioners may sue by action or other appropriate proceeding in the Circuit Court for an order directing the person so making default to deliver such return or additional return or to show cause to the contrary; and the Circuit Court may by order direct such accountable person to deliver such return or additional return within such time as may be specified in the order.

• (4) Whenever property is subject to a charge by virtue of section 60, the Attorney General or the Minister for Finance or the Commissioners may sue by action or other appropriate proceeding in any court of competent jurisdiction for, and the court may make, an order directing the owner of the property to pay the tax with which the property is charged.

64 Application of certain income tax provisions in relation to the collection and recovery of capital acquisitions tax, etc. [FA 1991 s129(1) to (6)]

64.—(1) In this section “functions” includes powers and duties.

• (2) All sums due under this Act shall be paid to the Collector or to such person as may be nominated under this section.

• (3) Section 928(1) and 964(2) of the Taxes Consolidation Act 1997, shall, with any necessary modifications, apply in relation to an assessment of tax, a correcting assessment of tax, or an additional assessment of tax as it applies in relation to assessments to income tax.

• (4) The Collector shall collect and levy the tax from time to time charged in all assessments, correcting assessments and additional assessments of which particulars have been transmitted to the Collector under subsection (3).

• (5) All the provisions of the Income Tax Acts relating to the collection and recovery of income tax shall, subject to any necessary modifications, apply in relation to tax as they apply in relation to income tax chargeable under Schedule D.

• (6)
• (a) The Commissioners may nominate persons to exercise on behalf of the Collector any or all of the functions conferred on the Collector by this section and, accordingly, those functions, as well as being exercisable by the Collector, shall also be exercisable on the Collector's behalf by persons so nominated.

• (b) A person shall not be nominated under this subsection unless that person is an officer or employee of the Commissioners.

65 Evidence in proceedings for recovery of tax. [CATA 1976 s50]

65.—Section 39 of the Finance Act 1926, shall apply in any proceedings in the Circuit Court or the District Court for or in relation to the recovery of the tax.

PART 8 Appeals

66 Appeals regarding value of real property. [CATA 1976 s51]

66.—(1) If a person is aggrieved by the decision of the Commissioners as to the market value of any real property, that person may appeal against the decision in the manner prescribed by section 33 of the Finance (1909-10) Act 1910, and the provisions as to appeals under that section of that Act shall apply accordingly with any necessary modifications.

• (2) The particulars of any transfer or lease which are presented to or obtained by the Commissioners under section 12(2) of the Stamp Duties Consolidation Act 1999 shall, in any appeal under this section, be received as prima facie evidence of all matters and things stated in such particulars.

67 Appeals in other cases. [CATA 1976 s52]

67.—(1) In this section—

“Appeal Commissioners” has the meaning assigned to it by section 850 of the Taxes Consolidation Act 1997;

“appellant” means a person who appeals to the Appeal Commissioners under subsection (2).

• (2) Subject to the other provisions of this Act, a person who is called on by the Commissioners to pay an assessment of tax in respect of any property and who is aggrieved by the assessment may, in accordance with this section, appeal to the Appeal Commissioners against the assessment and the appeal shall be heard and determined by the Appeal Commissioners whose determination shall be final and conclusive unless the appeal is required to be reheard by a judge of the Circuit Court or a case is required to be stated in relation to it for the opinion of the High Court on a point of law.

• (3) An appeal shall not lie under this section in relation to the market value of real property.

• (4) A person who intends to appeal under this section against an assessment shall, within 30 days after the date of the assessment, give notice in writing to the Commissioners of that person's intention to appeal against the assessment.

• (5)
• (a) Subject to this section, the provisions of the Income Tax Acts relating to—

• (i) the appointment of times and places for the hearing of appeals,

• (ii) the giving of notice to each person who has given notice of appeal of the time and place appointed for the hearing of that person's appeal,

• (iii) the determination of an appeal by agreement between the appellant and an officer appointed by the Commissioners in that behalf,

• (iv) the determination of an appeal by the appellant giving notice of that appellant's intention not to proceed with the appeal,

• (v) the hearing and determination of an appeal by the Appeal Commissioners, including the hearing and determination of an appeal by one Appeal Commissioner,

• (vi) the publication of reports of determinations of the Appeal Commissioners,

• (vii) the determination of an appeal through the neglect or refusal of a person who has given notice of appeal to attend before the Appeal Commissioners at the time and place appointed,

• (viii) the extension of the time for giving notice of appeal and the readmission of appeals by the Appeal Commissioners and the provisions which apply where action by means of court proceedings has been taken,

• (ix) the rehearing of an appeal by a judge of the Circuit Court and the statement of a case for the opinion of the High Court on a point of law,

• (x) the payment of tax in accordance with the determination of the Appeal Commissioners notwithstanding that an appeal is required to be reheard by a judge of the Circuit Court or that a case for the opinion of the High Court on a point of law has been required to be stated or is pending,

• (xi) the procedures for appeal,

• (xii) the refusal of an application for an appeal hearing,

shall, with any necessary modifications, apply to an appeal under this section as if the appeal were an appeal against an assessment to income tax.

• (b) The Commissioners shall, subject to their giving notice in writing in that behalf to the appellant within 10 days after the determination of an appeal by the Appeal Commissioners, have the same right as the appellant to have the appeal reheard by a judge of the Circuit Court.

• (c) The rehearing of an appeal under this section by a judge of the Circuit Court shall be by a judge of the Circuit Court in whose circuit the appellant or one of the appellants resides or (in the case of a body corporate) has its principal place of business, but—

• (i) in any case where no appellant is resident in or (in the case of a body corporate) has a place of business in the State, or

• (ii) in any case where there is a doubt or a dispute as to the circuit,

the appeal shall be reheard by a judge of the Circuit Court assigned to the Dublin Circuit.

• (6)
• (a) Where a notice or other document which is required or authorised to be served by this section is to be served on a body corporate, such notice shall be served on the secretary or other officer of the body corporate.

• (b) Any notice or other document which is required or authorised by this section to be served by the Commissioners or by an appellant may be served by post and in the case of a notice or other document addressed to the Commissioners, shall be sent to the Secretaries, Revenue Commissioners, Dublin Castle, Dublin 2.

• (c) Any notice or other document which is required or authorised to be served by the Commissioners on an appellant under this section may be sent to the solicitor, accountant or other agent of the appellant and a notice thus served shall be deemed to have been served on the appellant unless the appellant proves to the satisfaction of the Appeal Commissioners, or the Circuit Court, as the case may be, that that appellant had, before the notice or other document was served, withdrawn the authority of such solicitor, accountant or other agent to act on that appellant's behalf.

• (7) Prima facie evidence of any notice given under this section by the Commissioners or by an officer of the Commissioners may be given in any proceedings by the production of a document purporting—

• (a) to be a copy of the notice, or

• (b) if the details specified in the notice are contained in an electronic, photographic or other record maintained by the Commissioners, to reproduce those details in so far as they relate to that notice,

and it shall not be necessary to prove the official position of the person by whom the notice purports to be given or, if it is signed, the signature, or that the person signing and giving it was authorised to do so.

• (8)
• (a) The Commissioners may serve notice in writing, referring expressly to this subsection, on any person whom they have reason to believe to be accountable for the payment of tax, of any decision they have made which is relevant to such tax.

• (b) Any person who is informed of a decision in accordance with paragraph (a) may appeal to the Appeal Commissioners against the decision.

• (c) The Appeal Commissioners shall hear and determine an appeal to them under this subsection as if it were an appeal to them against an assessment to tax, and the provisions of this section relating to an appeal or to the rehearing of an appeal or to the statement of a case for the opinion of the High Court on a point of law shall, with any necessary modifications, apply accordingly.

68 Conditions before appeal may be made. [CATA 1976 s52A]

68.—No appeal shall lie under section 66 or 67 until such time as the person aggrieved by the decision or assessment (as the case may be) complies with section 46(2) in respect of the gift or inheritance in relation to which the decision or assessment is made, as if there were no time-limit for complying with section 46(2) and that person were a person primarily accountable for the payment of tax by virtue of section 45(1) and required by notice in writing by the Commissioners to deliver a return.

PART 9 Exemptions

69 Exemption of small gifts. [CATA 1976 s53(1), (2) and (4)]

69.—(1) In this section, “relevant period” means the period of 12 months ending on 31 December in each year.

• (2) The first €1,270 of the total taxable value of all taxable gifts taken by a donee from any one disponer in any relevant period is exempt from tax and is not taken into account in computing tax.

• (3) In the case of a gift which becomes an inheritance by reason of its being taken under a disposition where the date of the disposition is within 2 years prior to the death of the disponer, the same relief is granted in respect of that inheritance under subsection (2) as if it were a gift.

70 Exemption for spouses (gifts). [FA 1990 s127(1)]

70.—Notwithstanding any other provisions of this Act, a gift taken by a donee, who is at the date of the gift the spouse of the disponer, is exempt from tax and is not taken into account in computing tax.

71 Exemption for spouses (inheritances). [FA 1985 s59(1)]

71.—Notwithstanding any other provisions of this Act, an inheritance taken by a successor, who is at the date of the inheritance the spouse of the disponer, is exempt from tax and is not taken into account in computing tax.

72 Relief in respect of certain policies of insurance. [FA 1985 s60(1), (1A) and (2); FA 1990 s130; FA 1991 s118; FA 1996 s124]

72.—(1) In this section—

“insured” means an individual or, in relation to a qualifying insurance policy where—

• (a) the insured is an individual and the spouse of that individual at the date the policy is effected,

• (b) annual premiums are paid by either or both of them during their joint lives, and by the survivor of them during the life of such survivor, and

• (c) the proceeds of the policy are payable on the death of such survivor, or on the simultaneous deaths of both such spouses,

means—

• (i) where the proceeds of the policy are so payable on the death of such survivor, that survivor, and the proceeds of the policy is deemed to have been provided by such survivor, as disponer, or

• (ii) where the proceeds of the policy are so payable on the simultaneous deaths of both such spouses, each of the spouses, and each such spouse is deemed to have provided the proceeds of the policy—

• (I) to the extent that such proceeds are applied in paying the relevant tax of the insured who is that spouse, and

• (II) where the proceeds of the policy are not applied in paying relevant tax, to the extent that the proceeds not so applied are comprised in an inheritance taken under a disposition made by that spouse;

“qualifying insurance policy” means a policy of insurance—

• (a) which is in a form approved by the Commissioners for the purposes of this section,

• (b) in respect of which annual premiums are paid by the insured during the insured's life, and

• (c) which is expressly effected under this section for the purpose of paying relevant tax;

“relevant tax” means inheritance tax payable in respect of an inheritance (excluding, in the computation of such tax, an interest in a qualifying insurance policy) taken—

• (a) on the death of the insured,

• (b) under a disposition made by the insured, where the inheritance is taken on or after the date of death of the insured and not later than one year after that death, and

• (c) under a disposition made by the spouse of the insured where the inheritance is taken only in the event of the insured not surviving the spouse by a period of up to 31 days,

and the relevant qualifying insurance policy is—

• (i) a policy of insurance within the meaning of paragraphs (a), (b) and (c) of the definition of “insured” in this subsection, or

• (ii) a policy of insurance where the insured is an individual and the proceeds of the policy are payable only on the contingency of the insured surviving that spouse.

• (2)
• (a) An interest in a qualifying insurance policy which is comprised in an inheritance taken under a disposition made by the insured is, to the extent that the proceeds of the policy are applied in paying relevant tax, exempt from tax in relation to that inheritance and is not taken into account in computing tax.

• (b) An interest in a qualifying insurance policy which is comprised in an inheritance taken under a disposition made by the insured is, to the extent that the proceeds of the policy are not applied in paying relevant tax, and notwithstanding the provisions of this Act, deemed to be taken on a day immediately after—

• (i) the date of the death of the insured, or

• (ii) the latest date (if any) on which an inheritance is taken in respect of which that relevant tax is payable,

whichever is the later.

73 Relief in respect of certain policies of insurance relating to tax payable on gifts. [FA 1991 s119(1) to (5)]

73.—(1) In this section—

“appointed date” means—

• (a) a date occurring not earlier than 8 years after the date on which a relevant insurance policy is effected, or

• (b) a date on which the proceeds of a relevant insurance policy become payable either on the critical illness or the death of the insured, or one of the insured in a case to which paragraph (b) of the definition of “insured” relates, being a date prior to the date to which paragraph (a) of this definition relates;

“insured” means—

• (a) where the insured is an individual, that individual, or

• (b) where the insured is an individual and the spouse of that individual at the date the policy is effected, that individual and the spouse of that individual, jointly or separately, or the survivor of them, as the case may be;

“relevant insurance policy” means a policy of insurance—

• (a) which is in a form approved by the Commissioners for the purposes of this section,

• (b) in respect of which annual premiums are paid by the insured,

• (c) the proceeds of which are payable on the appointed date, and

• (d) which is expressly effected under this section for the purpose of paying relevant tax;

“relevant tax” means gift tax or inheritance tax, payable in connection with an inter vivos disposition made by the insured within one year after the appointed date, excluding gift tax or inheritance tax payable on an appointment out of an inter vivos discretionary trust set up by the insured.

• (2) The proceeds of a relevant insurance policy are, to the extent that such proceeds are used to pay relevant tax, exempt from tax and are not taken into account in computing such tax.

• (3) Subject to sections 70 and 76, where the insured makes an inter vivos disposition of the proceeds, or any part of the proceeds, of a relevant insurance policy other than in paying relevant tax, such proceeds are not exempt from tax.

• (4) A relevant insurance policy is a qualifying insurance policy for the purposes of section 72 where the proceeds of such relevant insurance policy become payable on the death of the insured or one of the insured in a case to which paragraph (b) of the definition of “insured” relates, if such relevant insurance policy would have been a qualifying insurance policy if it had been expressly effected under that section.

• (5) A qualifying insurance policy for the purposes of section 72 is a relevant insurance policy where the proceeds of such qualifying insurance policy are used to pay relevant tax arising under an inter vivos disposition made by the insured within one year after the appointed date.

74 Exemption of certain policies of assurance. [FA 1993 s133]

74.—(1) In this section—

“assurance company” has the meaning assigned to it by section 706 of the Taxes Consolidation Act 1997;

“new policy” means a contract entered into by an assurance company which is a policy of assurance on the life of any person issued on or after 1 January 2001;

“old policy” means a contract entered into by an assurance company in the course of carrying on a foreign life assurance business within the meaning of section 451 of the Taxes Consolidation Act 1997 and issued on or after 1 December 1992 and before 1 January 2001.

• (2) Where any interest in a new policy or in an old policy is comprised in a gift or an inheritance, then any such interest—

• (a) is exempt from tax, and

• (b) is not taken into account in computing tax on any gift or inheritance taken by a donee or successor,

if it is shown to the satisfaction of the Commissioners that—

• (i) such interest is comprised in the gift or inheritance at the date of the gift or at the date of the inheritance,

• (ii) at the date of the disposition, the disponer is neither domiciled nor ordinarily resident in the State, and

• (iii) at the date of the gift or at the date of the inheritance, the donee or successor is neither domiciled nor ordinarily resident in the State.

• (3) Where—

• (a) an interest in a new policy or in an old policy, as the case may be, which is comprised in a gift or inheritance came into the beneficial ownership of the disponer or became subject to the disposition prior to 15 February 2001, and

• (b) the conditions at subparagraphs (i) and (iii) of subsection (2) are complied with,

then that subsection shall apply to that interest in a new policy or in an old policy, as the case may be, if, at the date of the disposition, the proper law of the disposition was not the law of the State.

75 Exemption of specified collective investment undertakings. [FA 1989 s85(1) and (2); FA 2001 s224(2) and (4) (part)]

75.—In this section—

“investment undertaking” has the meaning assigned to it by section 739B of the Taxes Consolidation Act 1997;

“specified collective investment undertaking” has the meaning assigned to it by section 734 of the Taxes Consolidation Act 1997;

“unit”, in relation to an investment undertaking, has the meaning assigned to it by section 739B of the Taxes Consolidation Act 1997;

“unit”, in relation to a specified collective investment undertaking, has the meaning assigned to it by section 734 of the Taxes Consolidation Act 1997.

• (2) Where any unit of an investment undertaking or of a specified collective investment undertaking is comprised in a gift or an inheritance, then such unit—

• (a) is exempt from tax, and

• (b) is not taken into account in computing tax on any gift or inheritance taken by the donee or successor,

if it is shown to the satisfaction of the Commissioners that—

• (i) the unit is comprised in the gift or inheritance—

• (I) at the date of the gift or at the date of the inheritance, and

• (II) at the valuation date,

• (ii) at the date of the disposition, the disponer is neither domiciled nor ordinarily resident in the State, and

• (iii) at the date of the gift or at the date of the inheritance, the donee or successor is neither domiciled nor ordinarily resident in the State.

• (3) Where—

• (a) any unit of an investment undertaking or of a specified collective investment undertaking which is comprised in a gift or inheritance came into the beneficial ownership of the disponer or became subject to the disposition prior to 15 February 2001, and

• (b) the conditions at subparagraphs (i) and (iii) of subsection (2) are complied with,

then that subsection shall apply to that unit of an investment undertaking or to that unit of a specified collective investment undertaking, as the case may be, comprised in a gift or inheritance, if at the date of the disposition, the proper law of the disposition was not the law of the State.

76 Provisions relating to charities, etc. [CATA 1976 s54(1), (2) and (4)]

76.—(1) Where any person takes a benefit for public or charitable purposes that person is deemed—

• (a) for the purposes of sections 5(1) and 10(1), to have taken that benefit beneficially, and

• (b) for the purposes of Schedule 2, to have taken a gift or an inheritance accordingly to which the group threshold of €19,050 applies.

• (2) A gift or an inheritance which is taken for public or charitable purposes is exempt from tax and is not taken into account in computing tax, to the extent that the Commissioners are satisfied that it has been, or will be, applied to purposes which, in accordance with the law of the State, are public or charitable.

• (3) Except where provided in section 80(5), a gift or inheritance which a person takes on becoming entitled to any benefit on the application to public or charitable purposes of property (including moneys provided by the Oireachtas or a local authority) held for such purposes is exempt from tax and is not taken into account in computing tax.

77 Exemption of heritage property. [CATA 1976 s55; FA 1978 s39(1) and (1A)]

77.—(1) This section applies to the following objects, that is, any pictures, prints, books, manuscripts, works of art, jewellery, scientific collections or other things not held for the purposes of trading—

• (a) which, on a claim being made to the Commissioners, appear to them to be of national, scientific, historic or artistic interest,

• (b) which are kept permanently in the State except for such temporary absences outside the State as are approved by the Commissioners, and

• (c) in respect of which reasonable facilities for viewing are allowed to members of the public or to recognised bodies or to associations of persons.

• (2)
• (a) Any object to which this section applies and which, at the date of the gift or at the date of inheritance, and at the valuation date, is comprised in a gift or an inheritance taken by a person is exempt from tax in relation to that gift or inheritance, and the value of that gift or inheritance is not taken into account in computing tax on any gift or inheritance taken by that person unless the exemption ceases to apply under subsection (3) or (4).

• (b) Section 89(5) shall apply, for the purposes of this subsection, as it applies in relation to agricultural property.

• (3) If an object exempted from tax by virtue of subsection (2) is sold within 6 years after the valuation date, and before the death of the donee or successor, the exemption referred to in subsection (2) shall cease to apply to such object, but if the sale of such object is a sale by private treaty to the National Gallery of Ireland, the National Museum of Science and Art or any other similar national institution, any university in the State or any constituent college of such university, a local authority or the Friends of the National Collections of Ireland, the exemption referred to in subsection (2) shall continue to apply.

• (4) The exemption referred to in subsection (2) shall cease to apply to an object, if at any time after the valuation date and—

• (a) before the sale of the object,

• (b) before the death of the donee or successor, and

• (c) before such object again forms part of the property comprised in a gift or an inheritance (other than an inheritance arising by virtue of section 20) in respect of which gift or inheritance an absolute interest is taken by a person other than the spouse of that donee or successor.

there has been a breach of any condition specified in paragraph (b) or (c) of subsection (1).

• (5) Any work of art normally kept outside the State which is comprised in an inheritance which is charged to tax by virtue of section 11(1)(b) or 11(2)(c) is exempt from tax and is not taken into account in computing tax, to the extent that the Commissioners are satisfied that it was brought into the State soley for public exhibition, cleaning or restoration.

• (6) Subsections (2) to (4) shall apply to the objects specified in subsection (1), to a house or garden that is situated in the State and is not held for the purpose of trading and—

• (a) which, on a claim being made to the Commissioners, appears to them to be of national, scientific, historic or artistic interest,

• (b) in respect of which reasonable facilities for viewing were allowed to members of the public during the 3 years immediately before the date of the gift or the date of the inheritance, and

• (c) in respect of which reasonable facilities for viewing are allowed to members of the public,

with the modification that the reference in subsection (4) to subsection (1)(b) or (c) shall be construed as a reference to paragraph (c) of this subsection and with any other necessary modifications.

• (7) Without prejudice to the generality of subsection (6), the provision of facilities for the viewing by members of the public of a house or garden is not regarded as reasonable in relation to any year which is taken into account for the purposes of paragraphs (b) and (c) of subsection (1), unless—

• (a) Bord Fáilte Éireann (in this section referred to as “the Board”) has, on or before 1 January in that year, been provided with particulars of—

• (i) the name, if any, and address of the house or garden, and

• (ii) the days and times during the year when access to the house or garden is afforded to the public and the price, if any, payable for such access,

and

• (b) in the opinion of the Commissioners—

• (i) subject to such temporary closure necessary for the purpose of the repair, maintenance or restoration of the house or garden as is reasonable, access to the house or garden is afforded for not less than 60 days (including not less than 40 days during the period commencing on 1 May and ending on 30 September of which not less than 10 of the days during that period shall fall on a Saturday or a Sunday or both) in that year,

• (ii) on each day on which access to the house or garden is afforded, the access is afforded in a reasonable manner and at reasonable times for a period, or periods in the aggregate, of not less than 4 hours,

• (iii) access to the whole or to a substantial part of the house or garden is afforded at the same time, and

• (iv) the price, if any, paid by members of the public in return for that access is reasonable in amount and does not operate to preclude members of the public from seeking access to the house or garden.

78 Heritage property of companies. [FA 1995 s166(1) to (7)]

78.—(1) In this section—

“relevant heritage property” means any one or more of the following—

• (a) objects to which section 77(1) applies,

• (b) a house or garden referred to in section 77(6);

“private company” has the meaning assigned to it by section 27;

“subsidiary” has the meaning assigned to it by section 155 of the Companies Act 1963.

• (2) Where a gift or inheritance consists in whole or in part—

• (a) at the date of the gift or at the date of the inheritance, and

• (b) at the valuation date,

of one or more shares in a private company which (after the taking of the gift or inheritance) is, on the date of the gift or on the date of the inheritance, a company controlled by the donee or successor within the meaning of section 27, then each such share is, to the extent that its market value for tax purposes is, at the valuation date, attributable to relevant heritage property, exempt from tax and the value of such relevant heritage property is, to that extent, not to be taken into account in computing tax on any gift or inheritance taken by that person unless the exemption ceases to apply under subsection (5) or (6), subject to the condition that the relevant heritage property was in the beneficial ownership of the company on 12 April 1995, or in the beneficial ownership on that date of another company which was on that date a subsidiary of the first-mentioned company.

• (3) Section 89(5) shall apply, for the purposes of subsection (2), as it applies in relation to agricultural property.

• (4) Where in relation to a gift or inheritance—

• (a) a part of a share in a private company is exempt from tax by virtue of subsection (2), and

• (b) such share is relevant business property within the meaning of Chapter 2 of Part 10,

then the relevant heritage property to which the market value of such share is partly attributable is disregarded in determining for the purposes of that Chapter what part of the taxable value of that gift or inheritance is attributable to such share; but the amount of the reduction (if any) which would but for subsection (2) fall to be made under that Chapter in respect of such share shall not otherwise be restricted notwithstanding subsection (2).

• (5) If a share in a private company which is exempted in whole or in part from tax by virtue of subsection (2) is sold within 6 years after the valuation date, and before the death of the donee or successor, the exemption referred to in subsection (2) shall, subject to subsection (7), cease to apply to such share.

• (6) Where the whole or part of the market value of a share in a private company which is comprised in a gift or inheritance is on the valuation date attributable to an item of relevant heritage property and—

• (a) that item of relevant heritage property is sold within 6 years after the valuation date, and before the death of the donee or successor, or

• (b) at any time after the valuation date and—

• (i) before the sale of such share or such item of relevant heritage property,

• (ii) before the death of the donee or successor, and

• (iii) before such share or such item of relevant heritage property forms part of the property comprised in a subsequent gift or inheritance in respect of which gift or inheritance an absolute interest is taken by a person other than the spouse of that donee or successor,

there has been a breach of any condition specified in section 77(1)(b) or (c) or section 77(6)(c),

then the exemption referred to in subsection (2) shall, subject to subsection (7), cease to apply to such share to the extent that that market value is attributable to such item of relevant heritage property.

• (7) Notwithstanding subsections (5) and (6), the exemption referred to in subsection (2) shall continue to apply if the sale of the share referred to in subsection (5), or the sale of the item of relevant heritage property referred to in subsection (6), is a sale by private treaty to the National Gallery of Ireland, the National Museum of Science and Art or any other similar national institution, any university in the State or any constituent college of such university, a local authority or the Friends of the National Collections of Ireland.

79 Exemption of certain inheritances taken by parents. [FA 1995 s165]

79.—Notwithstanding any other provision of this Act, an inheritance taken by a person from a disponer is, where—

• (a) that person is a parent of that disponer, and

• (b) the date of the inheritance is the date of death of that disponer,

exempt from tax and is not taken into account in computing tax if that disponer took a non-exempt gift or inheritance from either or both of that disponer's parents within the period of 5 years immediately prior to the date of death of that disponer.

80 Payments relating to retirement, etc. [CATA 1976 s56]

80.—(1) In this section—

“superannuation scheme” includes any arrangement in connection with employment for the provision of a benefit on or in connection with the retirement or death of an employee;

“employment” includes employment as a director of a body corporate and cognate words shall be construed accordingly.

• (2) Subject to subsection (3), any payment to an employee or former employee by, or out of funds provided by, that employee's or former employee's employer or any other person, bona fide by means of retirement benefit, redundancy payment or pension is not a gift or an inheritance.

• (3) Subsection (2) shall not apply in relation to a payment referred to in that subsection, and any such payment is deemed to be a gift or an inheritance where—

• (a) (i) the employee is a relative of the employer or other disponer, or

• (ii) the employer is a private company within the meaning of section 27, and of which private company the employee is deemed to have control within the meaning of that section;

• (b) the payment is not made under a scheme (relating to superannuation, retirement or redundancy) approved by the Commissioners under the Income Tax Acts; and

• (c) the Commissioners decide that in the circumstances of the case the payment is excessive.

• (4) The Commissioners shall serve on an accountable person a notice in writing of their decision referred to in subsection (3) and the accountable person concerned may appeal against such decision and section 67 shall apply with any necessary modifications in relation to such appeal as it applies in relation to an appeal against an assessment of tax.

• (5) Any benefit taken by a person other than the person in respect of whose service the benefit arises, under the provisions of any superannuation fund, or under any superannuation scheme, established solely or mainly for persons employed in a profession, trade, undertaking or employment, and their dependants, is (whether or not any person had a right enforceable at law to the benefit) deemed to be a gift or an inheritance, as the case may be, derived under a disposition made by the person in respect of whose service the benefit arises and not by any other person.

81 Exemption of certain securities. [CATA 1976 s57(1) and (2); FA 1997 s135(2) (part); FA 2001 s219 (part)]

81.—(1) In this section—

“security” means any security, stock, share, debenture, debenture stock, certificate of charge or other form of security issued, whether before, on or after the passing of this Act, and which by virtue of any enactment or by virtue of the exercise of any power conferred by any enactment is exempt from taxation when in the beneficial ownership of a person neither domiciled nor ordinarily resident in the State;

“unit trust scheme” means an authorised unit trust scheme within the meaning of the Unit Trusts Act 1990, whose deed expressing the trusts of the scheme restricts the property subject to those trusts to securities.

• (2) Securities, or units (within the meaning of the Unit Trusts Act 1990) of a unit trust scheme, comprised in a gift or an inheritance are exempt from tax (and are not taken into account in computing tax on any gift or inheritance taken by the donee or successor) if it is shown to the satisfaction of the Commissioners that—

• (a) the securities or units were comprised in the disposition continuously for a period of 6 years immediately before the date of the gift or the date of the inheritance, and any period immediately before the date of the disposition during which the securities or units were continuously in the beneficial ownership of the disponer is deemed, for the purpose of this paragraph, to be a period or part of a period immediately before the date of the gift or the date of the inheritance during which they were continuously comprised in the disposition;

• (b) the securities or units were comprised in the gift or inheritance—

• (i) at the date of the gift or the date of the inheritance, and

• (ii) at the valuation date;

and

• (c) the donee or successor is at the date of the gift or the date of the inheritance neither domiciled nor ordinarily resident in the State,

and section 89(5) shall apply, for the purposes of this subsection, as it applies in relation to agricultural property.

• (3) Subsection (2)(a) shall not apply where—

• (a) the disponer was neither domiciled nor ordinarily resident in the State at the date of the disposition, or

• (b) the securities or units concerned came into the beneficial ownership of the disponer before 26 March 1997, or became subject to the disposition before that date, and the disponer was neither domiciled nor ordinarily resident in the State at the date of the gift or the date of the inheritance.

• (4) Where the securities or units concerned came into the beneficial ownership of the disponer, or became subject to the disposition prior to 15 February 2001, then subsection (2) shall apply as if the reference to the period of 6 years in that subsection were construed as a reference to a period of 3 years.

82 Exemption of certain receipts. [CATA 1976 s58]

82.—(1) The following are not gifts or inheritances:

• (a) the receipt by a person of any sum bona fide by means of compensation or damages for any wrong or injury suffered by that person in that person's person, property, reputation or means of livelihood;

• (b) the receipt by a person of any sum bona fide by means of compensation or damages for any wrong or injury resulting in the death of any other person;

• (c) the receipt by a person of any sum bona fide by means of winnings from betting (including pool betting) or from any lottery, sweepstake or game with prizes;

• (d) any benefit arising out of—

• (i) the payment to the Official Assignee in Bankruptcy of money which has been provided by, or which represents property provided by, friends of a bankrupt, or

• (ii) a remission or abatement of debts by the creditors of a bankrupt,

to enable the bankrupt to fulfil an offer of composition after bankruptcy in accordance with section 39 of the Bankruptcy Act 1988; and

• (e) any benefit arising out of—

• (i) the payment to the Official Assignee in Bankruptcy of money which has been provided by, or which represents property provided by, friends of an arranging debtor, or

• (ii) a remission or abatement of debts by the creditors of an arranging debtor,

to enable the debtor to carry out the terms of a proposal made by that debtor under section 87 of the Bankruptcy Act 1988, which has been accepted by that debtor's creditors and approved and confirmed by the High Court.

• (2) Notwithstanding anything contained in this Act, the receipt in the lifetime of the disponer of money or money's worth—

• (a) by—

• (i) the spouse or child of the disponer, or