Capital Acquisitions Tax Consolidation Act 2003 Section 88

Exemption of certain transfers from capital acquisitions tax following dissolution of marriage or civil partnership

Section 88 exempts from capital acquisitions tax (CAT) any gift or inheritance received by a former spouse or civil partner under a court order made as part of divorce, separation or civil partnership dissolution proceedings.

• A gift or inheritance taken under a qualifying court order by a party to the marriage or civil partnership is fully exempt from CAT and is not counted when calculating tax on other benefits.
• Qualifying orders include relief orders and maintenance orders made under the Family Law Act 1995 following legal separation or dissolution of a marriage, and orders under Part III of the Family Law (Divorce) Act 1996.
• Orders made under Part 12 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 following the dissolution of a civil partnership also qualify for the exemption.
• Equivalent orders made on or after 10 February 2000 by a foreign court, following a divorce or dissolution recognised as valid in Ireland, are also covered by the exemption.