Capital Acquisitions Tax Consolidation Act 2003 section 17

Exemptions

Section 17 exempts certain discretionary trusts from the once-off discretionary trust tax charge under section 15, including trusts created exclusively for charitable purposes, superannuation schemes, unit trust schemes, the benefit of incapacitated individuals, or the upkeep of heritage properties.

• Discretionary trusts created exclusively for public or charitable purposes are exempt from the once-off charge. Since Finance Act 2014, the exemption applies regardless of where the charitable purpose is based, but a trust that is party to arrangements whose main purpose is to secure a tax advantage for any person will not qualify.
• Trusts established in connection with statutory or Revenue-approved superannuation schemes, and trusts operating registered unit trust schemes under the Unit Trusts Act 1990, are also exempt — even where the trustees hold wide discretionary powers over the funds.
• A discretionary trust set up for one or more named individuals who are incapable of managing their own affairs — whether due to age, improvidence, or physical, mental, or legal incapacity — is exempt from the charge.
• The charge does not apply where a trust is created for the upkeep of a qualifying heritage house or garden (as defined in section 77(6)), where the trust property passes to the State on termination, or where section 40 (free use of property) and section 15 would otherwise create a double charge on the trust.