Capital Acquisitions Tax Consolidation Act 2003 section 16

Application of this Act

Section 16 modifies certain general CAT provisions to accommodate the fact that, in the case of discretionary trust tax, the "successor" taking the inheritance is a notional successor rather than an actual person.

• When determining whether a company is controlled by the successor for discretionary trust purposes, the shareholdings of a wide group of connected persons must be taken into account, including the trustees, living objects, their relatives, and various nominees.
• The valuation date for the deemed inheritance is the later of the date the inheritance arises or the valuation date determined under the normal rules in section 30.
• The trustees of the discretionary trust are primarily accountable for payment of the tax, and any object of the trust who has received a benefit from the trust after the charge arose is also accountable.
• Certain general CAT provisions do not apply to discretionary trust tax, including the normal accountable persons rules (section 45(1)), the standard computation rules (section 50), payment by transfer of Government securities (section 56), exemption for Government securities (section 81), and Schedule 2.