Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I move amendment No. 81:

In page 86, line 18, after “establishment,” to insert the following:“or who, regardless of age, is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself,”.

These amendments relate to section 73 of the Bill. That section amends section 82 of the Capital Acquisitions Tax Consolidation Act 2003, which exempts certain receipts from capital acquisitions tax.
Section 73 of the Bill amends sections 82(2) and 82(4) Capital Acquisitions Tax Consolidation Act 2003, CATCA, to provide that payments made for the support, maintenance or education of the children of living parents and orphaned children are exempt from capital acquisitions tax, CAT, up to the age of 25 if the children are in full-time education. CAT exemption for payments made by parents for the support or maintenance of dependent relatives, including children who are incapacitated by physical or mental infirmity, are dealt with separately under section 82 of CATCA 2003 and this exemption applies provided the income of the dependent relative does not exceed about €13,800 per annum.
These amendments expressly ensure that the exemption applies to a child who, regardless of age, is permanently incapacitated by reason of physical or mental infirmity.
For children in general, the exemption applies to 25 years of age, but for children who are physically or mentally incapacitated, there is no age limit. This measure aims to block a tax avoidance measure where wealthy parents were using the cover of this section to provide extraordinarily valuable gifts of money and property to children, purporting that these gifts were for educational use.

Chairman:Thank you Minister. We will stop now for a ten-minute break.