Capital Acquisitions Tax Consolidation Act 2003 section 33

Release of limited interests, etc

Section 33 deals with the early termination of limited interests in property (such as life interests) and how Capital Acquisitions Tax is charged when such interests come to an end before the event that would normally have ended them.

• Where a limited interest (e.g. a life interest) ends before the event on which it was due to cease (e.g. death of the life tenant), tax is charged as if that event had occurred immediately before the interest actually ended.
• Early termination can occur through a further disposition, combining successive interests into one ownership, or any means other than the event originally intended to end the interest. "Event" includes a death and the expiration of a specified period.
• The tax charge under this section does not prevent a further charge to tax on any gift or inheritance affecting the same property under a different disposition — however, where the original disponer had reserved the limited interest to himself and section 33 applies, a double charge on the same property does not arise under both the original and the new disposition.
• Section 105 provides relief where a double charge does arise on the same property in the same event, by allowing tax on the earlier event in priority to be credited against tax on the later event.