202 / 482
GAZETTE
JULY 1989
cums t ances in wh i ch these
charges arise are set out and then
each one is covered in detail. The
main areas concerned are discre-
tionary trusts wi th a periodic
charge and the treatment of
retained and accumulated income.
This part is also concerned wi th
discretionary trusts which would
be subject to the exit charges, and
here are met very many of the
concepts which are familiar to the
C.A.T. p r ac t i t i oner such as,
omission to exercise a right,
transfers w i t h in or t h r ough
companies etc. Again, however, the
philosophy of the tax is different
and must always be borne in mind.
The chapter also covers the fiscal
domicile rules of the UK code
whereby a person having resided in
the UK for 17 years out of the
previous 20 years is regarded as
having a fiscal domicile there.
Similarly, if a person having been
domiciled there leaves the UK, he
retains that domicile for three
years.
There is also a chapter devoted
to favoured t r us ts such as
accumulation and maintenance
trusts, protective trusts, charitable
trusts, employee trusts and the
form of relief given to them.
It is in Part 3 that we find the
areas that are most relevant to
C.A.T. as it deals with items which
are effective in both taxes. Again,
it starts wi th an overview leaving
the plan of campaign for the rest of
the part and it in fact forms over
half the publication.
The valuation provisions of IHT in
Section 52 of the IHT Act 1984 are
very similar to the C.A.T. provisions
and although there are special
reliefs in the UK which do not apply
here, many of the cases and obser-
vations in this chapter would be
relevant to C.A.T.
In the end, Chapter 15 is very
relevant in the area of C.A.T. as it
covers such items as domicile both
legal and fiscal and can be very
impo r t ant f r om t he returned
emigrants' point of view.
It also covers the "foreign"
element of IHT, what property
would be "excluded property".
The following t wo chapters are
concerned wi th settled property
generally and the favoured settle-
ments in the UK. It incorporates
extensive discretionary trusts
cases including the
Pearson
case
and is very relevant to C.A.T. It also
discusses the effect of
Fumiss -v-
Dawson
on UK transactions and
although this is not relevant here,
marriage consideration.
There is again a further chapter
devoted to d i spos i t i ons by
associated operations and the
same type of disposition is included
in the Capital Acquisitions Tax Act,
1976. The Irish position is not
defined but the IHT provision is
very similar to the Estate Duty
position and within that concept
the chapter considers the concept
in the light of the
Ramsay
and
Furniss
decisions. Again, familiar
Estate Duty cases appear, such as
Bambridge -v- IRC,
and
IRC -v-
Herdman
in this area.
In particular, the Convention
between Ireland and the UK is dis-
cussed in great detail and is
perhaps the first discussion I have
seen on the Irish/UK Taxation treaty
for Capital Tax although it merely
repeats the main provisions of the
Convention with certain problems
w i t h in t he con t ext of t hose
provisions being discussed.
This is an extremely handsome
publication and would grace any
p r ac t i t i one r 's bookshelf w i t h
authority. As a reference work, it
fulfils all the functions required
with easily accessible information
and, although tends to be wordy in
certain areas, it is essential for all
those concerned with IHT and, to
a lesser extent, C.A.T.
Objectively, most use of this
pub l i ca t i on wi ll be made by
practitioners who concern them-
selves with tax as their main
function and for those, I would
heartily
r ecommend
the
publication.
Brian A. Bohan
TO LET
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over The Educational Building Society
at 345, Ballyfermot Road, Dublin 10.
Brendan J. Walsh Associatas
Telephone: 760651 - 613446
Family Lawyers
Association
SEMINAR
Support Services
in Family Cases
BuswelTs Hotel, Dublin
7.00 p.m.
14 June, 1989
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