Capital gains Tax

rebelden

My father passed away three years ago. I was gifted a site with a value of about 200,000 plus sum other monies. Last week my mother passed away. I know the current threshold is 225,000.What way does this work with tax thresholds and current monies.

littlemiss123

rebelden wrote: »

My father passed away three years ago. I was gifted a site with a value of about 200,000 plus sum other monies. Last week my mother passed away. I know the current threshold is 225,000.What way does this work with tax thresholds and current monies.

You will have to pay capital acquisitions tax (CAT) on any amounts inherited from persons in Class A over €225,000. Your mother and father are both deemed to be Class A relationships.

Therefore if you inherited €200,000 from your father you can inherit another €25,000 from your mother and then you will become liable to CAT of 30% of anything inherited after that. You mentioned "other monies" which may also have to be included in calculating the remaining Class A threshold. Other reliefs may apply though depending on the type of assets inherited.

dogsears

+1 on the above however note that the current CAT rate is 33% rather than 30%

There are other factors that may or may not be relevant to your final tax cost as well, and they'd be too involved to talk about here. You'd be as well off talking to whatever Solicitor would be handling the administration of your mother's estate tbh.

littlemiss123

dogsears wrote: »

+1 on the above however note that the current CAT rate is 33% rather than 30%

There are other factors that may or may not be relevant to your final tax cost as well, and they'd be too involved to talk about here. You'd be as well off talking to whatever Solicitor would be handling the administration of your mother's estate tbh.

Good spot dogsears, 33% not 30%!! Still in 2012 mode from my last exams !

I agree, you need to seek professional advice from a solicitor and importantly a tax consultant in order to minimise your liability.

Mr. Incognito

Property thread.

Ban for OP.

Ban for respondent. Note also incorrect advice. Reason for property thread bans.

I agree, you need to seek professional advice from a solicitor and importantly a tax consultant in order to minimise your liability.

^^^^This