Capital Acquisitions Tax Consolidation Act 2003 section 55

Payment of tax on certain assets by instalments

Section 55 allows the recipient of a gift or inheritance consisting of agricultural property or business property to pay capital acquisitions tax by instalments at a reduced rate of interest.

• Where tax is attributable to agricultural property or relevant business property (excluding quoted shares or securities), the tax may be paid by instalments under section 54, even where the property would not normally qualify for instalments under that section.
• If the property (or any replacement property) is sold or compulsorily acquired during the instalment period and the proceeds are not re-invested in other qualifying property within the required timeframe, all outstanding instalments become immediately payable unless the beneficiary holds only a limited interest.
• Interest on instalments is charged at the reduced rate of 0.0241% per day (or such other rate as may be prescribed by the Minister for Finance by regulations), rather than the standard rate; however, overdue instalments attract the normal interest rate of 0.0322% per day.
• The instalment facility does not apply to the once-off discretionary trust tax under section 15(1) or the annual discretionary trust tax under section 20(1), and any regulations varying the interest rate must be laid before Dáil Éireann.