AITI Chartered Tax Adviser

What are the deductible costs when calculating CAT?

The following are not deductible in computing taxable value:
(a) A contingent liability. However, if the event occurs and the liability crystallises, any tax paid may be recalculated with a deduction given for the liability on the basis that the beneficiary took a limited interest in the property for the period until the liability crystallised.
(b) Reimbursable liabilities. However, such costs are deductible if reimbursement cannot be obtained.
(c) Any liability created by the beneficiary or any person claiming in his right or on his behalf.
(d) Tax, interest and penalties in respect of the gift or inheritance, together with costs and interest incurred in raising or paying such taxes.
(e) An incumbrance on exempt property.
(f) In the case of a benefit from a non-domiciled person:
(i) expenses due to a non-resident (unless payable in the ROI, or charged on ROI situate property),
(ii) expenses charged on foreign property comprised in the benefit, except to the extent that the foreign property comprised in the benefit is insufficient to pay the expenses.
(g) Foreign tax for which a credit is obtainable under the double tax treaty or by way of unilateral relief.
In computing taxable value, you may not deduct:
(a) the same expenditure more than once as respects all benefits taken by a beneficiary from the same disponer,
(b) expenditure allowed in computing agricultural value.
A liability which deprives the beneficiary of the use, enjoyment, or income of the property or any part of the property is deductible.