Difference between Probate Tax and Capital Acquisitions Tax

Pandoras Twist

I'm researching the use of capital and wealth taxes in Ireland and I came across this in the Commission on Taxation's 2009 Report

Probate tax (1993 – 2000)
This was introduced in Finance Act 1993 as the ‘Taxation of Assets Passing on Inheritance (ProbateTax)’. The tax was imposed at a rate of 2% on the estates of persons who died after 17 June 1993. A charge to probate tax arose if the deceased was domiciled in Ireland at the date of death.
All assets (wherever situated) passing under a will or intestacy were liable to the tax. Where the deceased was not domiciled in Ireland, only assets situated in Ireland were liable. Assets passing otherwise than under the will or intestacy were excluded. Liabilities of the deceased at the time of death were deductible in arriving at the taxable base. Probate tax was abolished in Finance Act 2001.

Was this tax supplementary to CAT? If anyone could answer or point towards an explanation it would be greatly appreciated

Mr. Incognito

Before my time unfortunately.

Don't know

Pandoras Twist

Even the revenue website just seems to have the same blurb. CAT was introduced in 1975 and I see no mention of it being withdrawn at any point.

Back to the hunt I guess.

nompere

Probate tax was introduced by FA 1993 and repealed by FA 2001.

It was charged additionally to CAT.

The basic rate was 2%. Interest was charged on late payments - but unusually there was a discount for early payment.

Any share of an estate passing to a surviving spouse was exempt from PT.

The threshold was low - around Ir£10,000 to Ir£11,000.

It failed the Colbert test:

“The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing”

Jean Baptiste Colbert (French Economist and Minister of Finance under King Louis XIV of France. 1619-1683)

Pandoras Twist

Excellent! Thanks a million.