Capital gains tax and market value ?

szlb

Hi,

Hope someone can help,

When paying CGT it states it is charged on the difference between the market value and the sale price, Just wondering in cases where the land was passed to a spouse on death where does the market value come from, Is it the value set on probate or just the general average price on the date of death?

I have emailed the revenue but have not had a reply a also if it does go by the probate value, and I believe that maybe have been incorrectly valued is there anything that can be done or is it set in stone?

Many Thanks

Alan Shore

You need to seek professional advice as specific advice of this nature is not allowed on boards.ie.

szlb

Alan Shore wrote: »

You need to seek professional advice as specific advice of this nature is not allowed on boards.ie.

Oh ok thanks, I thought it was ok as it was a more general question, Will have to hope Revenue decide to reply eventually :-)

Mr. Incognito

http://www.revenue.ie/en/tax/cgt/leaflets/cgt1.pdf

Page 6

szlb

Thanks but I have ralready read the booklet and still d dont quite understand where the market value comes from, Maybe its just me but it just seems like the figure could just be plucked from anywhere?

Thanks anyway

nompere

szlb wrote: »

Thanks but I have ralready read the booklet and still d dont quite understand where the market value comes from, Maybe its just me but it just seems like the figure could just be plucked from anywhere?

Thanks anyway

Revenue will ask this lot:

http://www.valoff.ie/

You probably need a professional valuer as well.

Mr. Incognito

szlb wrote: »

Thanks but I have ralready read the booklet and still d dont quite understand where the market value comes from, Maybe its just me but it just seems like the figure could just be plucked from anywhere?

Thanks anyway

7. Death
Where assets pass on death there is, in general, no charge to Capital Gains Tax. The person acquiring the assets is treated, in relation to a subsequent disposal of those assets, as if they had been acquired at their market value at the date of the death or, if the death took place before 6 April 1974 the market value at 6 April 1974 (see Chapter 3, paragraph 3).


How well did you read it? If there is a cat charge then valuation date depends on whether died testate or intestate. Your solicitor should sort it as part of administering the estate.

Anyway it's a moot point. Inter spousal transfers are free from tax

szlb

Mr. Incognito wrote: »

7. Death
Where assets pass on death there is, in general, no charge to Capital Gains Tax. The person acquiring the assets is treated, in relation to a subsequent disposal of those assets, as if they had been acquired at their market value at the date of the death or, if the death took place before 6 April 1974 the market value at 6 April 1974 (see Chapter 3, paragraph 3).


How well did you read it? If there is a cat charge then valuation date depends on whether died testate or intestate. Your solicitor should sort it as part of administering the estate.

Anyway it's a moot point. Inter spousal transfers are free from tax

Sorry I meant the CGT on the sale after it was passed from spouse at death, So what I am trying to figure out is where I get the market value amount from that date if it is not the probate value that was (incorrectly) done by an estate agent at the time

Basically whether to sell or not at the moment partly depends on the amount of CGT that would have to be paid, I assumed it was a straight across the board the figure should come from xyz type of situation but guessing it, like most things with the Revenue, is not in any way straight forward.

Thanks for your help though x