Some of the issues which the Minister will have to consider in his review of CAT are set out below. On the other hand, there are sweeping relief's such that business assets and agricultural assets, are almost entirely excluded from the tax. The result is that when the tax does have application to non business and non agricultural assets, it is confiscatory in nature. But for a whole other section of the community, farming and business, the tax is almost irrelevant. The sweeping reliefs for agriculture were necessary in the light of the high tax rates.
Probate duty provides a model for a low rate, low relief tax.
Its existence is proof that the present structure of CAT is unsatisfactory. If CAT were functioning properly it would not have been necessary to add on yet a third tax to supplement it. Discretionary trusts levies make it very expensive in tax terms to have a discretionary trust. Where a couple with young children are drafting a will designed to cover the possibility that they might die while the children are still young, a discretionary trust may be the only practical solution. You cannot have large amounts of assets given to young children.