AITI Chartered Tax Adviser

What benefits are exempt from CAT?

A benefit taken for public or charitable purposes is exempt to the extent that Revenue are satisfied it will be applied for purposes regarded as charitable under Irish law.
Heritage items
The following heritage items are exempt from tax: books, manuscripts, jewellery, scientific collections, works of art, and other non-trading items.
This exemption also applies to a ROI situate house or garden (not used for trading) if there are reasonable public viewing facilities.
Retirement payments
A bonafide pension, retirement or redundancy payment from an employer to an employee or ex-employee is exempt.
The following are exempt:
(a) bonafide compensation or damages for injury to a person’s property, reputation or means of livelihood,
(b) bonafide compensation or damages for the death of another person,
(c) bonafide winnings from betting, a lottery, sweepstake or prize game,
Reasonable maintenance is exempt if it is paid:
(a) for the support, maintenance or education of a disponer’s spouse, child, or person to whom he/she acts as a parent,
(b) for the support or maintenance of the disponer’s dependent relative.
An inheritance taken from your deceased spouse is exempt. A gift taken from your spouse (or from your ex-spouse in accordance with a court-approved separation agreement or divorce agreement,) is exempt from gift tax.
Government securities
Certain government securities can be taken tax-free by a non-ordinary resident child of the disponer. The securities must have been held by you for three years before the date of the gift or inheritance. There is no limit to the amount that may be taken tax-free in this manner.
Principal private residence
A gift or inheritance of a dwelling house (a building, or part of a building, suitable for use as a dwelling together with its garden and grounds of up to one acre) is exempt provided the beneficiary:
(a) his lived continuously in the house as his only or main residence for the three years ending on the date of the gift or the date of the inheritance, or has lived in the house or the property which it replaced for three of the four years ending on the date of the benefit,
(b) does not beneficially own any other dwelling house, or an interest in such a house, at the date of the benefit,
(c) continues to live in the house as his only or main residence for the six years beginning on the date of benefit.