Tax Appeals Commission determination 07TACD2017 regarding Capital Acquisitions Tax, 2017

• Administrative Decision Number: 07TACD2017
• Date: 01 September 2010
• Subject Matter: Capital Acquisitions Tax
• Respondent: REVENUE COMMISSIONERS

07TACD2017

BETWEEN/

NAME REDACTED

Appellant

V

REVENUE COMMISSIONERS

Respondent

DETERMINATION

Introduction

1. This appeal relates to the question of the availability of an exemption in accordance

with section 86 of the Capital Acquisitions Tax Act 2003 (‘CATCA 2003’) commonly

referred to as ‘dwelling-house exemption’. The dwelling-house, the subject matter of

the exemption claim, is located at [ADDRESS REDACTED] (hereafter ‘the dwelling-

house’).

2. In January 20XX, the Appellant was the owner of a property at [ADDRESS

REDACTED] a two-story duplex apartment unit (hereafter ‘the apartment’). The

parties to this appeal each accept that the Appellant disposed of this property by way

of assignment, on 25 January 20XX. The parties disagree in relation to the date upon

which the Appellant became beneficially entitled in possession, to the dwelling-

house.

3. The matter at issue in the appeal relates to whether the Appellant was, at the date of

the gift of the dwelling-house, beneficially entitled to any other dwelling-house or to

any interest in any other dwelling-house in accordance with s.86(3)(b) CATCA 2003.

The parties to this appeal differ in relation to the date of the gift of the dwelling-house.

2

4. The Respondent, in disallowing the claim for exemption, raised a notice of assessment

to Capital Acquisitions Tax on [DATE REDACTED] 2014 in the sum of €[AMOUNT

REDACTED] in respect of the period 1 September 20XX to 31 August 20XX.

Facts

5. By deed dated [DATE REDACTED] 2004, the Appellant’s father, established a trust

(hereafter ‘the trust’). The dwelling-house was acquired by the trust on [DATE

REDACTED] 2005. The trustees were the parents of the Appellant (hereafter ‘the

trustees’).

6. In January 20XX, the trustees gifted the dwelling-house to the Appellant. On 21

January 20XX, the trustees signed the deed of appointment and the deed of transfer

in relation to the gift of the dwelling-house, in the presence of their solicitor, Ms. Z.,

who duly witnessed their signatures.

7. Subsequently, on 21 January 20XX, the deed of transfer was furnished to and signed

by the Appellant and was witnessed by the Appellant’s solicitor, Ms. Y. The deed of

transfer was left undated at that meeting.

8. On 23 February 20XX, Ms. Z., solicitor for the trustees, wrote to Ms. Y., solicitor for the

Appellant, indicating a completion date re the transaction of 26 January 20XX. On 26

January 20XX, Ms. Z. dated the deed of appointment 19 January 20XX, in error. A copy

of the deed of appointment was enclosed under cover of this letter together with some

other documentation.

9. Prior to submitting an e-stamping application to the Respondent, Ms. Y. dated the

deed of transfer, 25 January 20XX, in error. The Appellant contended that it should

have been dated 26 January 20XX while the Respondent contended there was no

validity to the date of 26 January 20XX, the deed having been signed by all relevant

parties on 21 January 20XX.

10. Subsequently, on 20 April 20XY, the trustees and the Appellant executed deeds of

rectification. The deeds of rectification provided that the trustees and the Appellant

agreed that the dwelling-house was appointed to the Appellant on 26 January 20XX