Capital Acquisitions Tax Consolidation Act 2003 Section 51

Payment of tax and interest on tax

Section 51 sets out the rules for the payment of capital acquisitions tax and the charging of interest on overdue tax, including the applicable daily interest rates, exemptions from interest in certain clawback situations, and the treatment of payments on account.

• Capital acquisitions tax is due on the valuation date; simple interest is charged on late payment using the formula T × D × P, where T is the unpaid tax, D is the number of days unpaid, and P is the applicable daily percentage rate (currently 0.0219% per day from 1 July 2009).
• Interest is not payable on tax arising from certain clawbacks (agricultural relief, heritage property relief, business relief, company heritage relief, residence relief, and development land relief) for the period from the valuation date to the date the relief ceases to apply.
• Where tax and interest are paid within 30 days of a Revenue assessment, interest is not charged for that 30-day period; payments on account may be made at any time and will stop interest running on the amount paid.
• Where a gift becomes an inheritance because the disponer died within two years, interest runs from the date of death rather than the valuation date; and where a limited interest is valued as a series of absolute interests, interest runs from the date each absolute interest is taken.