Capital Acquisitions Tax Consolidation Act 2003 section 22

Exemptions

Section 22 exempts certain discretionary trusts from the 1% annual discretionary trust tax charge, mirroring the exemptions that apply to the once-off 6% discretionary trust tax charge under section 17.

• Trusts created exclusively for public or charitable purposes (in the State or Northern Ireland), for superannuation (pension) purposes approved by Revenue, or operating as unit trust schemes under the Unit Trusts Act 1990 are exempt from the annual charge.
• Trusts established for the benefit of one or more named individuals who are incapable of managing their own affairs — whether due to age, improvidence, or permanent physical or mental incapacity — are also exempt.
• Trusts created exclusively for the upkeep of heritage houses and gardens of national, historic, or artistic interest that are open to the public (as referred to in section 77) are exempt.
• The annual charge also does not apply where the trust property will pass to the State on termination, or where the free use of property provisions under section 40 and the once-off discretionary trust charge already deem the property to be taken by the trust.