Where a person makes a gift of an asset to another, or transfers, an asset at under market value, the transaction may come within the scope of the following separate taxes:
Capital gains tax (CGT) in respect of any chargeable gain accruing to the person making the gift; and
Capital acquisition tax (CAT) on the taxable value of the gift taken by the person receiving the gift.
It is unclear from the question the type of situation that the Deputy has in mind when he refers to a disposal which is exempt from gift tax but is charged to capital gains tax. In general, where a parent makes a gift of property to a child the parent may be subject to capital gains tax on the disposal of the property and the child may be subject to capital acquisition tax on receipt of the gift. However, the liability to each tax would depends on the precise circumstances and the reliefs available within each of the taxes.
Where a person acquires an asset and subsequently disposes of it, the person is deemed to have realised a capital gain equal to the increase in the asset's value over the period. In general, the gain is chargeable to capital gains tax at a rate of 40 per cent. A disposal takes place whenever the ownership of an asset changes, irrespective of whether payment is received.