Capital Acquisitions Tax Consolidation Act 2003 section 10

Inheritance deemed to be taken

Section 10 sets out when a person is deemed to take an inheritance for Capital Acquisitions Tax purposes and applies corresponding gift rules from section 5 to inheritances.

• A person takes an inheritance where, under a disposition, they become beneficially entitled in possession on a death to any benefit without paying full consideration in money or money's worth — regardless of whether they already hold an interest in the property concerned.
• The "appropriate part" rules in section 5 (subsections (2), (4) and (5)) that apply to gifts also apply, with any necessary modifications, to inheritances — including the deemed benefit rules and the free-use-of-property provisions.
• Where an inheritance consists of the capital value of an annuity (as contemplated by section 5(2)), the notional sum involved is deemed not to be situated in the State at the date of the inheritance, which may take it outside the charge to Irish tax depending on the residence status of the parties.
• Where an inheritance involves shares in a private company (as defined in section 27), the inheritance may be treated as arising even if full consideration was paid, unless the transaction can reasonably be regarded as a genuine arm's length sale reflecting full consideration from the disponer's perspective.