Capital Taxes & Stamp Duty

1. Administering an estate and related legal issues

1.1 Explain what is meant by a Will

1.2 Outline how a Will can be revoked

1.3 Outline sample clauses contained in a Will

1.4 Outline how and why an executor extracts a grant of probate

1.5 Outline why a grant of administration is taken out

1.6 Outline how a grant of administration is taken out and who is entitled to do so

1.7 Explain how and why a grant of probate/grant of administration can be revoked

1.8 Outline the steps involved in the administration of an estate

1.9 Explain what a Statement of Affairs (Probate) is and when it is used

1.10 Outline the main terms of the Succession Act 1965

1.11 Define a “disclaimer” and outline what happens to a benefit that has been disclaimed

1.12 Compare the effect of a disclaimer on intestacy to a disclaimer under a Will

1.13 Rearrange the proposed plan of action so as to achieve the same commercial goal but availing of any reliefs available

2. Miscellaneous CAT issues relating to estates

2.1 Outline CAT issues surrounding payments out of estates

2.2 Outline the CAT implications of legacies lapsing

2.3 Examine dispositions involving estates and calculate any CAT arising

3. Policies of assurance

3.1 Outline the CAT treatment of payments under life assurance policies

3.2 Outline the CAT treatment of insurance proceeds paying inheritance tax and gift tax (“Section 60” and “Section 119” type policies)

3.3 Examine dispositions involving policies of assurance and calculate any CAT arising

4. Anti-avoidance

4.1 Explain the anti-avoidance rules relating to foreign-controlled private registered companies and why they were introduced

4.2 Examine dispositions involving a foreign controlled private company and calculate any CAT arising

5. Double taxation relief

5.1 Describe how double taxation relief is granted in Ireland for tax suffered on a gift or an inheritance in other jurisdictions

6. Basic valuation rules

6.1 Explain how the market value of a benefit is ascertained for CAT purposes

6.2 Outline any exceptions to the general open market value requirement

6.3 Compare this requirement to the CGT market value requirement

7. Annuities and limited interests

7.1 Outline how rights derived from other assets are valued for CAT purposes using the slice principle

7.2 Describe how gifts or benefits with claims arising are valued

7.3 Describe how annuities not charged on property are valued

7.4 Describe how limited interests are valued

7.5 Examine dispositions involving limited interests and calculate any CAT arising

8. Powers of revocation and contingencies

8.1 Describe how a benefit, which is subject to a power of revocation, is treated for CAT purposes

8.2 Describe how a benefit, which is subject to a contingency, is treated for CAT purposes

8.3 Examine dispositions involving a power of revocation or contingency and calculate any CAT arising

9. Property, including real property

9.1 Outline how mortgages charged to a property are treated for the purposes of CAT

9.2 Contrast joint tenants with tenants in common

9.3 Outline how the free use of property is charged to CAT

9.4 Examine dispositions involving real property and calculate any CAT arising

10. Private companies

10.1 Assess if a company is a private company for CAT purposes

10.2 Outline how shares in private companies should be valued for CAT purposes

10.3 Compare the valuation for CAT with the valuation used for CGT

10.4 Examine dispositions involving private companies and calculate any CAT arising

11. Family businesses, including farms

11.1 Identify if any relief is available on a disposition involving land

11.2 Outline any clawback provisions applicable to agricultural relief

11.3 Identify if any relief is available on a disposition involving a business

11.4 Outline any clawback provisions applicable to business relief

11.5 Compare agricultural and business relief

11.6 Compare these two CAT reliefs with the CGT relief available to the disponer and apply the CAT reliefs and the CGT relief to various scenarios

11.7 Describe the relief available for “Favourite Nephews”

11.8 Outline the conditions which must be met in order to qualify for “Favourite Nephew” relief

11.9 Examine dispositions involving family businesses and calculate any CAT arising

12. Introduction to trusts

12.1 Define a trust

12.2 Identify the types of trusts that exists

12.3 Outline the office, duties and powers of the trustee

13. Bare trusts

13.1 Define a bare trust

13.2 Examine dispositions involving a bare trust and calculate any CAT arising

14. Fixed trusts

14.1 Define a fixed trust

14.2 Apply the charge to CAT to a fixed trust

14.3 Explain the tax arising on disposals of interests created under a fixed trust

14.4 Explain how the failure of a limited interest affects the charge to CAT

14.5 Examine and apply dispositions involving a fixed trust and calculate any CAT arising

15. Powers of appointment

15.1 Compare a general power of appointment to a special power of appointment

15.2 Outline how a power of appointment can affect the tax payable on the benefit

15.3 Analyse a set of circumstances and determine whether any of these provisions are applicable

15.4 Examine dispositions involving a power of appointment and calculate any CAT arising

16. Discretionary trusts

16.1 Define a discretionary trust for CAT purposes and contrast this with its legal definition

16.2 Outline the appointments from a discretionary trust that give rise to gift or inheritance tax

16.3 Apply the valuation date of gift/inheritance rules in the context of a discretionary trust

16.4 Determine whether any discretionary trust tax is payable

17. Administration of the taxes included in the CATCA 2003

17.1 Identify who the accountable persons are for CAT

17.2 Using legislation, outline the self-assessment system for the collection of tax and complete the returns for individuals to manage their filing obligation and manage their compliance calendar

17.3 Describe and compute the consequences of failing to file a return or pay a tax liability in full and on time

17.4 Describe the appeals process as it applies to an individual within the self-assessment system

18. Gift splitting

18.1 Analyse legislation to define connected dispositions, including onward gifts before first gift.

18.2 Outline any exceptions to the gift-splitting rules

18.3 Explain the need for rules relating to dispositions enlarging the value of property

18.4 Outline the rules relating to dispositions enlarging the value of property

18.5 Identify and apply if any anti-avoidance provisions apply and calculate the CAT arising

19. Provisions affecting companies

19.1 Explain how dispositions to and by a company are treated for CAT

19.2 Describe and apply the CAT treatment of gifts between associated companies

Glossary of key terms

Pro-Forma Answer Sheet

20. Introduction to Stamp Duty

20.1 Identify the events that can give rise to stamp duty

20.2 Identify the heads of charge for stamp duty

20.3 Outline the territorial scope of stamp duty

20.4 Explain the meaning of terms used in the context of stamp duty

20.5 Outline the main sources of law for stamp duty

20.6 Understand some special principles of stamp duty

20.7 Outline the rates of stamp duty

21. The Charge to Stamp Duty - Sales

21.1 Assess whether a transaction is a sale and judge whether there is a stampable document for the sale

21.2 Understand the meaning of the term “conveyance on sale”

21.3 Identify whether a conveyance on sale is within the charge to stamp duty

21.4 Understand the charge to stamp duty on certain contracts for sale

22. The Charge to Stamp Duty - Leases

22.1 Assess whether a transaction is a lease and differentiate between a lease and an agreement for lease

22.2 Identify a lease at undervalue

22.3 Explain how lease transfers and lease surrenders are treated for stamp duty purposes

22.4 Identify whether a transaction involving a lease is within the charge to stamp duty

23. The Rate of Stamp Duty

23.1 Identify the correct rate of stamp duty that applies to a sale of non-residential property

23.2 Identify the correct rate of stamp duty that applies to a lease and a sale of shares

23.3 Understand the interaction of stamp duty and VAT

23.4 Understand the extent of double taxation relief for stamp duty

24. Stampable Value

24.1 Assess where market value is imposed for stamp duty

24.2 Identify the amount on which stamp duty is chargeable

24.3 Identify the amount on which stamp duty is payable where the consideration is in a foreign currency

24.4 Compare the market value rules for stamp duty to those of CGT

24.5 Calculate the duty applicable to a contract for sale

25. Real Property

25.1 Calculate stamp duty on a transfer of residential property

25.2 Explain how stamp duty applies to site sales combined with building contracts (for residential property and commercial property)

25.3 Describe the stamp duty treatment for practical property transactions

25.4 Describe the stamp duty treatment when a mix of residential and non-residential property is purchased

25.5 Identify situations where a 7.5% stamp duty charge applies to transfers of interests in certain entities deriving their value from Irish non-residential property

25.6 Describe the stamp duty rebate scheme for land acquired to develop residential property

25.7 Assess how much stamp duty is payable on a property transaction

26. Business Assets and Investments

26.1 Assess how much stamp duty is payable on a distribution in specie

26.2 Describe the exemptions from stamp duty on business assets and investments

26.3 Describe the loan capital exemption and understand where it applies

26.4 Assess how much stamp duty is payable on a transaction involving business assets or investments

27. Married Couples and Civil Partners

27.1 Explain and assess the stamp duty reliefs available to spouses/civil partners on the transfers of assets while living together and relief available on dissolution of marriage/civil partners

28. Administration of Stamp Duty

28.1 Identify the accountable person for stamp duty and payment of the tax due

28.2 Describe self-assessment system, appeals and refunds for stamp duty purposes

28.3 Describe the e-Stamping system

28.4 Describe penalties, surcharges and Revenue powers included in the SDCA 99

28.5 Apply the penal provisions of the Taxes Consolidation Act 1997 to stamp duty

29. Introduction to Stamp Duty Groups

29.1 Explain how associated companies relief operates