News & Press

Changes to Capital Acquisition Tax

Important changes regarding the Capital Acquisition Tax (CAT) administration system announced in the Finance Act 2010 effective from 14th of June 2010.

CAT

  • A new fixed pay & file date of 31st of October, for all valuation dates falling in the 12 month period commencing on 1st of September and ending on 31st August, will be introduced for Gift and Inheritance Tax.
  • A new electronic gift and inheritance tax return (Form IT38) will be available through ROS (Revenue's On-line Service). This new return can be used for all tax years from 2001.
  • There is a requirement to electronically file the gift and inheritance tax return, except in the circumstances outlined below.
  • A new paper gift and inheritance tax return (Form IT38S) will be available but can only be used if the taxpayer meets the following criteria:
    1. No relief/exemption/credit is claimed, apart from small gift exemption.
    2. The benefit taken is an absolute interest without conditions or restrictions.
    3. The property included in the return was taken from only one Disponer and is not part of a larger benefit
  • The old version of Form IT38 may not be used in respect of valuation dates on or after 14 June 2010.
  • Returns filed though ROS in respect of valuations dates commencing on 1 September 2009 and ending on 31 August 2010 will be accepted as filed on time where the return is made by 31 October 2010. Where the return and payment is made through ROS, the extended filing date will also apply.

 

Filing of IT38s

  • From the 14th of June all Form IT38s, for deaths occurring on or after 5th December 2001, can be filed and payment made online through ROS.
  • It will be mandatory to file online through ROS where a valuation date is on or after the 14th June 2010 unless a taxpayer can meet the following criteria:
    1. No relief/exemption/credit is claimed, apart from small gift exemption.
    2. The benefit taken is an absolute interest without conditions or restrictions.
    3. The property included in the return was taken from only one Disponer and is not part of a larger benefit
  • If a taxpayer meets these criteria he/she may use the new Form IT38S. Please note that the old Form IT38 may not be used in respect of valuation dates on or after 14 June 2010.
  • From the 14th of June all paper IT38s, for deaths occurring on or after 5th December 2001, should be sent to the following address:

    Collector General
    PO Box 354
    Limerick