Dáil Éireann debate -
Wednesday, 13 Feb 1991

Vol. 405 No. 1

Written Answers. - Capital Acquisitions Tax.

Ruairí Quinn

Question:

56 Mr. Quinn asked the Minister for Finance if his attention has been drawn to the anomalous situation concerning the operation of capital acquisitions tax to persons in second relationships that on the death of one or other of the partners the surviving partner, who may be the joint owner/purchaser of the shared residence and the nominated beneficiary of any insurance policy, is treated as a total stranger for the purposes of tax assessment and is consequently liable to pay tax, which in some cases involves, of necessity, the disposal of the shared residence, causing much disruption; and if he will make a statement on the matter.

Ruairí Quinn

Question:

57 Mr. Quinn asked the Minister for Finance if he proposes to issue any recommendations to the Revenue Commissioners in relation to the anomalous application of the capital acquisitions tax with regard to the treatment of persons in second relationships who have been married previously under the jurisdiction of this State and either obtained a religious annulment and remarried in a religious ceremony or alternatively obtained a foreign non-Irish State recognised divorce and married outside the jurisdiction of the State; and if he will make a statement on the matter.

Ruairí Quinn

Question:

58 Mr. Quinn asked the Minister for Finance if he will issue guidelines for the purposes of interpretation as to how the capital acquisitions tax should apply in relation to persons who are in second relationships but who have not contracted any form of religious or civil second marriage outside or within the jurisdiction of the State and have contracted to jointly purchase a home together and have nominated each other as the beneficiaries of their estate upon their death; and if he will make a statement on the matter.

Minister for Finance (Mr. A. Reynolds)

I propose to take Questions Nos. 56, 57 and 58 together.

Gifts and inheritances taken by one partner from the other in the relationships described in the Deputy's questions are entitled to a tax free threshold of £10,760. This tax treatment reflects the general law relating to marriage.

I am empowered to issue recommendations or guidelines to the Revenue Commissioners on the implementation of the legislation relating to capital acquisitions tax. The Commissioners are obliged to administer the tax in accordance with the provisions of the Capital Acquisitions Tax Act, 1976.