Finance Act, 1991

Capital acquisitions tax, waiver in respect of certain interest payable, etc.

120.—(1) In this section “donee” includes a successor and a reference to a gift or a taxable gift includes a reference to an inheritance or a taxable inheritance, as the case may be, and a reference to gift tax includes a reference to inheritance tax.

(2) Where in respect of a gift taken on or before the 30th day of January, 1991—

(a) gift tax is due and payable by a donee on any date on or before the 30th day of September, 1991, and

(b) in the period beginning on the 30th day of January, 1991, and ending on the 30th day of September, 1991, a return is delivered and gift tax is assessed in respect of the gift in accordance with the provisions of section 36 (inserted by section 74 of the Finance Act, 1989 ) of the Principal Act or section 104 of the Finance Act, 1986 , and

(c) such gift tax is paid on or before the 30th day of September, 1991,

interest payable on such gift tax up to the 30th day of April, 1991, shall be waived and penalties, if incurred, shall not be collected.

(3) For the purposes of subsection (2) where—

(a) gift tax assessed on a taxable gift is being paid by instalments, or

(b) a payment on account of gift tax has been made,

sums paid in discharge of earlier instalments or as a payment on account of tax shall, notwithstanding the provisions of subsection (4) of section 41 of the Principal Act, be applied or reapplied towards the discharge of tax in the first instance:

Provided that where the sum so paid is in excess of the sum to be so applied or reapplied, the excess shall not be repaid.

(4) This section shall not apply in relation to a gift—

(a) where gift tax is due and payable by the donee concerned in respect of any other gift taken by him, unless such gift tax is paid on or before the 30th day of September, 1991,

(b) where any capital gains tax is due and payable in respect of a disposal of the property comprised in the gift concerned, unless such capital gains tax and penalties (together with all interest due in respect of that tax) is paid at the same time or prior to the date of payment of the gift tax on that gift.

(5) Where additional gift tax becomes due and payable as a result of a revaluation of property included in a self assessed return, which was delivered on or after the 30th day of January, 1991, interest payable on such additional gift tax shall not be waived.

(6) (a) A fine or other penalty imposed by a court in connection with a gift shall not be waived.

(b) Interest on gift tax, which has been ordered to be paid by a court, shall not be waived.