Inheritance Tax - Maintenance and Support
New Revenue guide on CAT and payments for support, maintenance or education
Revenue has published a guide on the changes to Section 82 CATCA 2003 (payments for support, maintenance or education of a child by a parent or a person acting in loco parentis). Following the Finance Act changes the CAT exemption is only available if a child is a minor, or no more than 25 and in full-time education, or permanently incapacitated. Revenue provides examples of the types of benefits it considers are and are not exempt from CAT under Section 82.
Examples of non-exempt benefits include: purchase of a house for a child, gift of a house deposit, free use of a house (unless under 25 and in university), monetary gifts.
Examples of exempt benefits include: "bed and board" in the family home, cost of a family function such as a wedding, college costs e.g. tuition fees, transport costs, pocket money.
Read the guide here. http://www.revenue.ie/en/practitioner/ebrief/2014/no-1092014.html
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