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CAT - Inheritance - IT38 - Questions

  • 30-07-2015 3:59pm
    #1
    Blue Steel
    Registered Users, Registered Users 2 Posts: 64 ✭✭


    Hi,

    I went to Revenue and asked details about how I should proceed about the inheritance liability:
    Long story short, the day the money is lodged into my account is what they call the valuation date. If it is prior to 31st August 2015, then IT38 must be filed before 31st Octobre 2015, else is has to be filed before 31st Octobre 2016. Threshold is 225k. Amount above that is taxed at 33%, there is a tax relief because the inheritance will have already been taxed in the country the deceased lived and passed away.

    Unfortunately I have more questions now I think about it.

    Since the solicitor dealing with the inheritance is holding part of the money for the time being (he will receive the full amount in the coming months) I can tell him when to lodge the money.

    Sounds like 2 options:

    1) ask solicitor to send money part 1 before 31st August 2015, fill in an IT38 before 31st Oct 2015, then file another IT38 next year after receiving the remainder.

    2) wait after 31 August 2015 to get the full amount lodged in to have the valuation date match up with a CAT return of 31st Octobre 2016.


    * Is the above correct?
    * In case of 1) both amounts will be below the threshold but added together they go above. I presume the one inheritance threshold will be spread over the 2 CAT filings?
    * When you file an IT38 do you also have to file a tax return?
    * Any recommendations?


Comments

  • #2
    Alan Shore
    Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    Any recommendations

    Go and talk to an accountant or solicitor.

    It's not when they lodge the money it's when they retain the money on your behalf!

    You have to file a return when you exceed 80% of the threshold.


  • #3
    Blue Steel
    Registered Users, Registered Users 2 Posts: 64 ✭✭Blue Steel


    Alan Shore wrote: »
    Go and talk to an accountant or solicitor.

    It's not when they lodge the money it's when they retain the money on your behalf!


    Strange: it's a man from Revenue working for CAT who told me this as I was requesting information on the topic. He even wrote it down on a piece of paper for me.
    Alan Shore wrote: »
    You have to file a return when you exceed 80% of the threshold.

    This is (also) confusing: the CAT year is 1st Sept -> 31st Aug, the tax return however is 1st Jan to 31st Dec.
    So if the calculation date is post 31st Aug can we ssume that the tax return needs to be made for next year even though the valuation date is post 31 st aug and prior 31st Dec?


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