Capital Acquisitions Tax Consolidation Act 2003 section 50

Computation of tax

Section 50 provides that gift tax and inheritance tax are computed in accordance with the rules set out in Schedule 2, subject to the special charging provisions for discretionary trusts.

• Gift tax and inheritance tax are computed under the rules in Schedule 2 of the Act.
• The current rate of CAT is 33% on the taxable value exceeding the relevant group threshold.
• The computation is subject to section 18 (the 6% initial levy on discretionary trusts) and section 23 (the 1% annual levy on discretionary trusts).
• The taxable value is the market value of the gift or inheritance less the appropriate group threshold applicable to the relationship between the disponer and the beneficiary.