Capital Acquisitions Tax Consolidation Act 2003 section 105

Allowance for prior tax on the same event

Section 105 provides a credit mechanism to prevent the same property being taxed twice when gift tax or inheritance tax is charged more than once on the same property arising from the same event.

• Where tax is charged more than once on the same property on the same event, the net tax earlier in priority is allowed as a credit against the tax later in priority.
• The credit is limited to the net amount of the later tax — it cannot create a refund or negative liability.
• The earlier-priority tax is not deducted when calculating the taxable value for the later tax; instead, it is deducted directly from the later tax liability itself.
• This mechanism ensures that the total tax collected on the property does not exceed the highest single charge that would apply, preventing genuine double taxation on the same event.