Capital Acquisitions Tax Consolidation Act 2003 section 75

Exemption of certain investment entities

Section 75 exempts from capital acquisitions tax units held in certain collective investment vehicles — including collective investment schemes, common contractual funds, investment undertakings, and investment limited partnerships — where both the disponer and the beneficiary are foreign-domiciled and not ordinarily resident in Ireland.

• Units in a foreign-incorporated collective investment scheme, a common contractual fund (CCF), an investment limited partnership, or an investment undertaking are exempt from CAT provided both the disponer and the beneficiary are neither domiciled nor ordinarily resident in the State.
• The exemption requires the unit to be comprised in the gift or inheritance both at the date of the gift or inheritance and at the valuation date; the disponer must be foreign-domiciled and not ordinarily resident in the State at the date of the disposition; and the beneficiary must be foreign-domiciled and not ordinarily resident in the State at the date of the gift or inheritance.
• For units in an investment undertaking acquired by the disponer before 15 February 2001, a transitional rule applies: the exemption is available where the proper law of the disposition was not Irish law and the beneficiary was foreign-domiciled and not ordinarily resident in the State at the date of the gift or inheritance.
• The definition of "collective investment scheme" specifically excludes a central securities depository (CSD) whose rules require holders to hold interests by way of co-ownership in a fungible pool of underlying securities.