CAT treatment of receipts by children from their parents for their Support, Maintenance or Education

Section 81 Finance Act 2014 has amended section 82 of the Capital Acquisitions Tax Act 2003 to confine the exemption of receipts by children for the provision of support, maintenance or education to receipts by:

  • a minor child of the disponer or of the civil partner of the disponer or,
  • a child of the disponer, or of the civil partner of the disponer, who is more than 18 years of age but not more than 25 years of age who is receiving full-time education or instruction at any university, college, school or other educational establishment, or
  • a child of the disponer or of the civil partner of the disponer who, regardless of age, is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself.

This may have implications for adult children living at home and dependant on their parent. Should you wish to discuss this further please contact us.