Capital Acquisitions Tax Consolidation Act 2003 section 54

Payment of tax by instalments

Section 54 allows a person liable for Capital Acquisitions Tax on a gift or inheritance consisting of real property (land and buildings) to opt to pay the tax by monthly instalments over a period of up to five years.

• Where a taxable gift or inheritance consists of real property, the person delivering the return may elect to pay the tax by monthly instalments over a maximum of five years, with the first instalment due on 31 October following the valuation date; interest on the unpaid balance is added to each instalment.
• If the property is sold or compulsorily acquired, all outstanding instalments become immediately payable on completion of the sale, unless the beneficiary holds only a limited interest in the property.
• The instalment option does not apply to personal property in which the beneficiary takes an absolute interest — it is available only for real property (land and buildings) and for limited interests in personal property.
• Where a life tenant who opted to pay by instalments dies before all instalments have fallen due, any instalments due after the date of death cease to be payable, and any such instalments already paid are treated as an overpayment of tax eligible for refund.