Capital Acquisitions Tax Consolidation Act 2003 section 84

Section 84 provides an exemption from capital acquisitions tax for gifts or inheritances taken exclusively to pay the medical and maintenance expenses of a permanently incapacitated person.

• Qualifying expenses cover the cost of medical care, including the cost of maintenance in connection with that care.
• A gift or inheritance taken exclusively to discharge such expenses for a permanently incapacitated individual is exempt from CAT.
• The exemption depends on the intention of the disponer — it is their purpose in providing the benefit that determines whether the exemption applies.
• The exemption applies only to the extent that Revenue are satisfied the benefit has been, or will be, applied for that purpose; any part used for another purpose does not qualify.