Capital Acquisitions Tax Consolidation Act 2003 section 97

Successive benefits

Section 97 relaxes the two-year minimum ownership requirement for business relief where a disponer dies before completing the two-year period, provided the property qualified (or would have qualified) for relief when the disponer originally acquired it.

• Where a disponer acquired relevant business property by way of a gift or inheritance that qualified for business relief, a subsequent inheritance of that property on the disponer's death can also qualify for relief, even if the disponer owned it for less than two years.
• The relaxation also applies where the original property has been replaced by other relevant business property — but relief is capped at the amount that would have applied to the original property before replacement.
• Where only a proportion of the earlier benefit qualified for business relief (for example, because the acquisition was partly a gift and partly a purchase), relief on the subsequent inheritance is restricted to the same proportion.
• The relaxation applies only where the subsequent benefit is an inheritance taken on the death of the disponer — it does not extend to lifetime gifts made by the disponer.