The main reliefs from CAT are:

(a) A widowed person can “stand in the shoes of” a predeceased spouse (Schedule 2 para 6).

(b) Agricultural relief. To qualify, the beneficiary must be a “farmer”, i.e., 80% of the gross market value of his assets must consist of agricultural property (i.e., farm land and buildings, crops, trees and underwood, livestock, bloodstock, and farm machinery) located in the EU.

The relief is a 90% reduction of the full market value. The relief is withdrawn if the property is disposed of within six years and the proceeds are not reinvested within one year (six years in the case of a compulsory acquisition) (s 89).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 The relief is withdrawn if the property is disposed of within six years of the date of the gift or inheritance and the proceeds are not reinvested within one year of the disposal (s 92).

(d) Favourite 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 policy taken out to pay CAT (s 72).

(g) If the same event gives rise to a liability to both CAT and CGT, the disponer’s CGT can be credited against the recipient’s CAT (s 104).