Changes to Capital Acquisitions Tax – Finance Act 2010

The Finance Act 2010 introduced a number of changes to the administration of gift and inheritance tax. Historically, a tax return and payment of tax must have been submitted within 4 months of the valuation date of a gift or inheritance.

The valuation date being the date on which:

Broadly speaking, the valuation date for a benefit is essentially the point in time at which the beneficiary becomes beneficially entitled in possession.

The 2010 Finance Act introduced a fixed pay and file date for gift/inheritance tax of 31st October, to align with the Income Tax pay and file deadline. All gifts and inheritances with a valuation date in the 12 month period ending on the previous 31st August will be included in the return (IT38) to be filed by 31st October.

Examples:
Valuation date 15 March 2011: File IT38 and pay tax by 31 October 2011
Valuation date 14 November 2011: File IT38 and pay tax by 31 October 2012

There is also an introduction of a surcharge for the late filing of a return.

Other changes include;

Current Gift/ Inheritance Tax thresholds:

Rates:

For further information contact  OSK Tax or visit our tax section.

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