Capital Acquisitions Tax (CAT)

This includes both Gift Tax and Inheritance Tax and is a charge on the market value of the property comprised in the gift/inheritance. The person giving the benefit is known as “the disponer”, while the person receiving the benefit is known as “the beneficiary” and the act of giving the gift/inheritance is known as “the disposition”.

Gift tax is a tax payable on certain gifts made during the lifetime of the disponer. It is made when the person receiving the gift becomes beneficially entitled in possession to some property and does not give full market value for it. Examples would include a present of cash, a voluntary transfer of a house or lands or the free use of a house for life.

An inheritance on the other hand arises when property of any nature passes on a death to another person. It occurs when the beneficiary becomes entitled in possession under a disposition on a death under a Will or on intestacy (where no Will is made).

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