2.4. Capital Acquisitions Tax
Prior to June 2010 legal personal representatives carried a secondary liability in respect of the payment of capital acquisitions tax. This would arise, for example, where a beneficiary did not pay any capital acquisitions tax due and the Revenue Commissioners could look to the executor to discharge it. For this reason it was common for all executors to ensure capital acquisitions tax was paid prior to releasing assets.
Since June 2010 this secondary liability no longer exists for executors unless they have been notified of such obligation by the Revenue Commissioners. Secondary liability does however remain where there are non-resident beneficiaries. Accordingly, extra care is required where any of the beneficiaries are non resident.