Capital Acquisitions Tax Consolidation Act 2003 section 82

Exemption of certain receipts

Section 82 sets out miscellaneous exemptions from capital acquisitions tax (CAT), covering compensation and damages, winnings, insolvency-related benefits, family maintenance payments, qualifying trusts for incapacitated individuals and orphaned children.

• Bona fide compensation or damages, winnings from betting or lotteries, and specified ex-gratia government payments (including Magdalen laundry, Covid-19 Death in Service, CervicalCheck and Stardust schemes) are not treated as gifts or inheritances for CAT purposes.
• Benefits arising from debt write-offs under personal insolvency arrangements, and from funds provided by friends or creditor remissions enabling a bankrupt or arranging debtor to settle with creditors, are similarly exempt.
• Financial assistance provided during the disponer's lifetime for the support, maintenance or education of children, persons to whom the disponer stands in loco parentis, or dependent relatives is exempt, provided it is normal in the disponer's circumstances and reasonable having regard to the disponer's financial position.
• Payments from a qualifying trust to an incapacitated individual, and financial assistance for the support, maintenance or education of orphaned minor children of a deceased disponer, are also exempt from CAT.

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