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8 1976

CAPITAL ACQUISITIONS TAX ACT, 1976

PART III

Inheritance Tax

Charge of inheritance tax.

10. —A capital acquisitions tax, to be called inheritance tax and to be computed as hereinafter provided, shall, subject to this Act and the regulations thereunder, be charged, levied and paid upon the taxable value of every taxable inheritance taken by a successor, where the date of the inheritance is on or after the 1st day of April, 1975.

Inheritance deemed to be taken.

11. —(1) For the purposes of this Act, where, under or in consequence of any disposition, a person becomes beneficially entitled in possession on a death to any benefit (whether or not the person becoming so entitled already has any interest in the property in which he takes such benefit), otherwise than for full consideration in money or money's worth paid by him, he shall be deemed to take an inheritance.

(2) The provisions of subsections (2), (4) and (5) of section 5 shall apply, with any necessary modifications, in relation to an inheritance as they apply in relation to a gift.

(3) For the purposes of section 12 (1) (b) the sum referred to in section 5 (2) (b) shall be deemed not to be situate in the State at the date of the inheritance.

Taxable inheritance.

12. —(1) In this Act, “taxable inheritance” means—

(a) in the case where—

(i) the disponer is domiciled in the State at the date of the disposition under which the successor takes the inheritance; or

(ii) the proper law of the disposition under which the successor takes the inheritance is, at the date of the disposition, the law of the State,

the whole of the inheritance; and

(b) in any case, other than the case referred to in paragraph (a), where, at the date of the inheritance—

(i) the whole of the property—

(I) which was to be appropriated to the inheritance;

or

(II) out of which property was to be appropriated to the inheritance,

was situate in the State, the whole of the inheritance;

(ii) a part or proportion of the property—

(I) which was to be appropriated to the inheritance;

or

(II) out of which property was to be appropriated to the inheritance,

was situate in the State, that part or proportion of the inheritance.

(2) For the purposes of subsection (1) (b)—

(a) “property which was to be appropriated to the inheritance” and “property out of which property was to be appropriated to the inheritance” shall not include any property which was not applicable to satisfy the inheritance; and

(b) a right to the proceeds of sale of property shall be deemed to be situate in the State to the extent that such property is unsold and situate in the State.

Disclaimer.

13. —(1) If—

(a) (i) a benefit under a will or an intestacy; or

(ii) an entitlement to an interest in settled property, is disclaimed;

(b) a claim—

(i) under a purported will in respect of which a grant of representation (within the meaning of the Succession Act, 1965 ) was not issued; or

(ii) under an alleged intestacy where a will exists in respect of which such a grant was issued,

is waived; or

(c) a right under Part IX of the Succession Act, 1965 , or any analogous right under the law of another territory, is renounced, disclaimed, elected against or lapses,

any liability to tax in respect of such benefit, entitlement, claim or right shall cease as if such benefit, entitlement, claim or right, as the case may be, had not existed.

(2) Notwithstanding anything contained in this Act—

(a) a disclaimer of a benefit under a will or intestacy or of an entitlement to an interest in settled property;

(b) the waiver of a claim—

(i) under a purported will in respect of which a grant of representation (within the meaning of the Succession Act, 1965 ) was not issued; or

(ii) under an alleged intestacy where a will exists in respect of which such a grant issued; or

(c) (i) the renunciation or disclaimer of;

(ii) the election against; or

(iii) the lapse of,

a right under Part IX of the Succession Act, 1965 , or any analogous right under the law of another territory,

shall not be a disposition for the purposes of this Act.

(3) Subsection (1) shall not have effect to the extent of the amount of any consideration in money or money's worth received for the disclaimer, renunciation, election or lapse or for the waiver of a claim; and the receipt of such consideration shall be deemed to be a gift or an inheritance, as the case may be, in respect of which no consideration was paid by the donee or successor and which was derived from the disponer who provided the property in relation to which the benefit, entitlement, claim or right, referred to in subsection (1), arose.

Surviving joint tenant deemed to take an inheritance, etc.

14. —(1) On the death of one of several persons who are beneficially and absolutely entitled in possession as joint tenants, the surviving joint tenant or surviving joint tenants shall be deemed to take an inheritance of the share of the deceased joint tenant, as successor or successors from the deceased joint tenant as disponer.

(2) The liability to inheritance tax in respect of an inheritance taken by persons as joint tenants shall be the same in all respects as if they took the inheritance as tenants in common in equal shares.