Services

Finance (No. 2) Bill 2023 - Capital Acquisitions Tax (“CAT”)

Mandatory Reporting of interest-free loans

The Bill introduces a new CAT reporting requirement in respect of interest-free “specified loans” meeting the following conditions:

• A benefit arises in respect of the loan under CAT principles
• A loan advanced from a “close relative” or certain companies owned by close relatives
• No interest has been paid on the loan within 6 months of the calendar year end and
• The balance on the loan (aggregated with any other specified loan in the relevant period) exceeds €335,000 for at least one day in the calendar period.

Close relative, for the purposes of this section includes a parent, civil partner of a parent, lineal ancestor or descendant, sibling and aunt or uncles.

The new measure comes into effect from 1 January 2024.

Clawback of Agricultural Relief and Business Relief

The Bill contains a number of technical amendments to the clawback provisions of CAT Agricultural Relief and Business Property relief.

Return to Finance (No.2) Bill 2023 Commentary

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Jackie Masterson

Tax Partner

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