Capital Acquisitions Tax Consolidation Act 2003 section 12

Disclaimer

Section 12 provides that benefits which are disclaimed, waived, renounced or allowed to lapse are ignored for capital acquisitions tax purposes, and sets out the tax treatment where consideration is received for making such a disclaimer.

• If you disclaim a benefit under a will or intestacy, waive a claim under a purported will or alleged intestacy, or renounce, disclaim, elect against, or allow to lapse a right under Part IX of the Succession Act 1965 (or equivalent foreign law), the tax liability is treated as if the benefit had never existed.
• A disclaimer, waiver, renunciation, election against, or lapse is not treated as a disposition for capital acquisitions tax purposes — so the person giving up the benefit is not regarded as having made a taxable transfer.
• If you receive payment (consideration in money or money's worth) for making the disclaimer, waiver, renunciation or election, the exemption does not apply to the extent of that consideration.
• Any consideration you receive for giving up the benefit is deemed to be a gift or inheritance (as appropriate) taken from the original disponer who provided the property, not from the person who paid you.