The main reliefs from capital acquisitions tax are:

(a) If you are a widow or widower, you may take the place and relationship status in respect of property acquired by your predeceased spouse (Schedule 2 para 6).

(b) Agricultural relief. To qualify, you must be a farmer – on the valuation date, at least 80% of the gross market value of your assets must consist of agricultural property (i.e., farm land and buildings, crops, trees and underwood, livestock, bloodstock, and farm machinery). You do not need to be domiciled in the Republic of Ireland on the valuation date (since 2 February 2006). Since 20 November 2008, agricultural land in another EU State also qualifies.

The relief is a 90% reduction of the full market value. The relief is withdrawn if you disposed of the property within six years of the date of the gift or inheritance and you do not reinvest the proceeds within one year of the disposal (six years in the case of a compulsory acquisition) (s 89).

(c) Business relief. To qualify, the property must be relevant business property, i.e., a sole trade business, an interest in a partnership, and unquoted shares in an Irish incorporated company.

The relief is a 90% reduction of the taxable value. The relief is withdrawn if the property is disposed of within six years of the date of the gift or inheritance and you do not reinvest the proceeds within one year of the disposal (s 92).

(d) Favorite nephew (or niece) relief (Schedule 2 para 7).

(e) Double taxation in respect of US and UK equivalent taxes (s 106, 107).

(f) The proceeds of a life assurance policy taken out to pay inheritance tax or gift tax (s 72).

(g) If the same event gives rise to a liability to both CAT and CGT, you may take a credit for the disponer’s CGT charge up to the amount of your CAT charge (s 104). The credit ceases to apply if you dispose of the property within two years of its acquisition.