Capital Acquisitions Tax Consolidation Act 2003 section 103

Relief from double aggregation

Section 103 prevents the same property from being counted more than once when calculating Capital Acquisitions Tax where that property is chargeable to tax more than once on the same event.

• Where the same property triggers more than one tax charge on the same event, it is only included once in the tax computation aggregates under Schedule 2.
• This situation typically arises with settled property, for example where a life interest is released early, triggering both an inheritance charge and a gift charge on the same property simultaneously.
• The rule in Schedule 2, paragraph 5, which normally treats all benefits taken by the same beneficiary on the same day as a single benefit, does not apply to property that is chargeable more than once on the same event.
• The earlier claim in priority takes precedence for tax purposes, ensuring the property is not double-counted in the aggregation used to compute the tax due.