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10 1990



Capital Acquisitions Tax

Interpretation (Part VI).

126. —In this Part “the Principal Act” means the Capital Acquisitions Tax Act, 1976 .

Exemption for spouses (gifts).

127. —(1) Notwithstanding the provisions of the Principal Act, a gift taken by a donee, who is at the date of the gift the spouse of the disponer, shall be exempt from tax and shall not be taken into account in computing tax.

(2) This section shall have effect in relation to a gift taken on or after the 31st day of January, 1990.

Amendment of Second Schedule to Principal Act.

128. —(1) In computing in accordance with the provisions of the Second Schedule to the Principal Act the tax chargeable on the taxable value of a taxable gift or a taxable inheritance taken by a donee or successor on or after the 1st day of January, 1990, the threshold amount in relation to the computation of tax on any relevant aggregate of taxable values under the provisions of paragraph 3 of Part I of that Schedule (inserted by section 111 of the Finance Act, 1984 ) shall be adjusted by multiplying each such threshold amount by the figure, rounded to the nearest third decimal place, determined by dividing by 133.5 the consumer price index number for the year immediately preceding the year in which that taxable gift or taxable inheritance is taken:

Provided that, where the tax so computed on the taxable value of that taxable gift or that taxable inheritance is a minus amount, that tax shall be nil.

(2) In this section “the consumer price index number” means the All Items Consumer Price Index Number for a year as compiled by the Central Statistics Office and expressed on the basis that the consumer price index number at mid-November, 1982, is 100.

Application of section 108 (exemptions) of Finance Act, 1984 .

129. —(1) For the purposes of section 108 (b) (ii) of the Finance Act, 1984 , a sponsored superannuation scheme within the meaning of subsection (9) of section 235 of the Income Tax Act, 1967 , shall not include a scheme or arrangement which relates to matters other than service in particular offices or employments.

(2) This section shall have effect in relation to a charge for tax which, apart from section 108 (b) (ii) of the Finance Act, 1984 , arises on or after the 5th day of April, 1990, under the provisions of section 106 of the said Act of 1984 or of section 103 of the Finance Act, 1986 .

Application of section 60 (relief in respect of certain policies of insurance) of Finance Act, 1985 .

130. —For the purposes of section 60 of the Finance Act, 1985 , “relevant tax” shall be deemed to include inheritance tax payable in respect of an inheritance taken under a disposition made by the spouse of the insured—

(a) where the inheritance is taken on the date of death of the insured, or

(b) where the inheritance is taken only in the event of the insured not surviving the spouse by a period of up to 31 days,

and the relevant qualifying insurance policy is—

(i) a policy of insurance within the meaning of paragraphs (a), (b) and (c) of subsection (1A) of that section (inserted by section 84 of the Finance Act, 1989 ), or

(ii) a policy of insurance where the insured is an individual and the proceeds of the policy are payable only on the contingency of the insured surviving that spouse.