Inheritance Tax

NeverWaining

Quick question about somebody from Group C in the Threshold inheriting a percentage of an estate.

The Capital Acquisitions Tax was resolved before the money was received. They received a statement for CAT and €8k was paid here. Can you calculate the amount that the person will receive from this?

Am I right in saying that there is 0% up to €15,075 and then 33% on the remainder?

Which would mean €15,075 plus (€8k/33 x 67) €16,242 = €31,317 to receive

Would that be correct?

NinjaTruncs

NeverWaining wrote: »

Quick question about somebody from Group C in the Threshold inheriting a percentage of an estate.

The Capital Acquisitions Tax was resolved before the money was received. They received a statement for CAT and €8k was paid here. Can you calculate the amount that the person will receive from this?

Am I right in saying that there is 0% up to €15,075 and then 33% on the remainder?

Which would mean €15,075 plus (€8k/33 x 67) €16,242 = €31,317 to receive

Would that be correct?

Shouldn't you multiply by 100 and not 67?.

NeverWaining

NinjaTruncs wrote: »

Shouldn't you multiply by 100 and not 67?.

The CAT was paid from the sum. So multiply by 67 for the actual amount that will be received or 100 if you wanted the total figure (which would include the €8k). As far as I see it?

I'm just trying to figure out how much they will receive, if it's possible. It's all new to me. The only figure I know for sure is the €8k on CAT.

barneystinson

€8k tax means €24k taxable, plus the €15k threshold equals €39k.

€39k minus €8k in CAT is €31k.

NeverWaining

barneystinson wrote: »

€8k tax means €24k taxable, plus the €15k threshold equals €39k.

€39k minus €8k in CAT is €31k.

Thanks barney. That's what I thought. They have not yet been told a total figure but it was hinted that it might be ~€28k total.

Calahonda52

NeverWaining wrote: »

Quick question about somebody from Group C in the Threshold inheriting a percentage of an estate.

The Capital Acquisitions Tax was resolved before the money was received. They received a statement for CAT and €8k was paid here. Can you calculate the amount that the person will receive from this?

Am I right in saying that there is 0% up to €15,075 and then 33% on the remainder?

Which would mean €15,075 plus (€8k/33 x 67) €16,242 = €31,317 to receive

Would that be correct?

This process is wrong:

CAT is now a self assessment tax, with the beneficiary liable to both make the return and pay it.
I suspect what has happened here is that some greedy lawyer made the returns and took a % as their fee. I successfully sued a lawyer for this crap: it takes time but the refund was worth it.

They have no business doing this stuff

barneystinson

Calahonda52 wrote: »

This process is wrong:

CAT is now a self assessment tax, with the beneficiary liable to both make the return and pay it.
I suspect what has happened here is that some greedy lawyer made the returns and took a % as their fee. I successfully sued a lawyer for this crap: it takes time but the refund was worth it.

They have no business doing this stuff

Careful with your assumptions there, you're basing it on 2nd or 3rd hand info.

NeverWaining

Thanks guys. It's good to be aware of any possibilities.

It's due to be finally settled soon I believe. I presume some sort of a breakdown will be provided and it won't be just the handover of a cheque? Or will it?

barneystinson

NeverWaining wrote: »

Thanks guys. It's good to be aware of any possibilities.

It's due to be finally settled soon I believe. I presume some sort of a breakdown will be provided and it won't be just the handover of a cheque? Or will it?

As Calahonda has pointed out, the beneficiaries are legally responsible for their own CAT returns. If the solicitors are filing the IT38 on their behalf, it can only be with the taxpayers approval for them to act as their agent.

In other words, don't be on here asking us, they need to demand answers / explanations from the people they've (knowingly or otherwise) appointed their agents..!

NeverWaining

barneystinson wrote: »

Don't be on here asking us

Right, thanks.