Capital Acquisitions Tax Consolidation Act 2003 section 80

Payments relating to retirement, etc

Section 80 exempts from capital acquisitions tax (CAT) bona fide payments made to an employee by way of retirement benefit, redundancy payment or pension, and sets out the circumstances in which the exemption may be denied. It also deems superannuation benefits received by a person other than the employee to have been taken from the employee as disponer.

• Genuine retirement benefits, redundancy payments and pensions paid by an employer to an employee (or former employee) are not treated as a gift or inheritance for CAT purposes.
• The exemption does not apply where the employee is a relative of the employer (or controls the employer company), the payment is not made under a Revenue-approved scheme, and Revenue consider the payment to be excessive in the circumstances.
• Where Revenue decide the exemption does not apply, they must notify the accountable person in writing; the person may appeal that decision to the Appeal Commissioners within 30 days of the notice.
• Any benefit received under a superannuation fund or scheme by someone other than the employee (e.g. a spouse or dependant) is deemed to be a gift or inheritance taken from the employee — not from the employer or the scheme.