Capital gains tax on inheritance

Buddhabear

My mum passed away recently.
In her will she left her house and land equally to my siblings and I.
We are all non residents living in the UK.
If the property is sold would capital gains tax have to be paid.
Thanks in advance for any advice.

coylemj

I believe you will have to pay tax here. The threshold for each child inheriting from a parent is €280,000 if the parent passed away after Oct. 14th last. Under the rules governing aggregation, if you previously inherited from your father, the threshold covers the aggregate inheritances from your parents. So if you (for example) got a cash bequest of €20,000 from your father, the threshold for a tax-free inheritance from your mother would be reduced by that amount. The other categories under the aggregation rules are separate so the €280K threshold covers your two parents only.

http://www.revenue.ie/en/tax/cat/thresholds.html

CIARAN_BOYLE

coylemj wrote: »

I believe you will have to pay tax here. The threshold for each child inheriting from a parent is €280,000 if the parent passed away after Oct. 14th last. Under the rules governing aggregation, if you previously inherited from your father, the threshold covers the aggregate inheritances from your parents. So if you (for example) got a cash bequest of €20,000 from your father, the threshold for a tax-free inheritance from your mother would be reduced by that amount. The other categories under the aggregation rules are separate so the €280K threshold covers your two parents only.

http://www.revenue.ie/en/tax/cat/thresholds.html

CAT vs CGT

coylemj

CIARAN_BOYLE wrote: »

CAT vs CGT

CAT is payable (or not as the case may be) on an inheritence based on the value of the asset(s) on the date of the death of the disponer (OP's mother).

If the OP and his siblings hang on to the assets and later sell them for a higher price, CGT is payable based on any appreciation since the valuation for probate. Exception would be if you inherited a house and made it your principal private residence in which case any profit on the disposal later would be exempt from CGT.

The rate in both cases is 33%.

Pkiernan

Buddhabear wrote: »

My mum passed away recently.
In her will she left her house and land equally to my siblings and I.
We are all non residents living in the UK.
If the property is sold would capital gains tax have to be paid.
Thanks in advance for any advice.

Multiply the number of children by 280k euro.
Tax will be payable if the estate exceeds this value, assuming there is no record of previous gifts of significant value.

Victor

Pkiernan wrote: »

Multiply the number of children by 280k euro.
Tax will be payable if the estate exceeds this value, assuming there is no record of previous gifts of significant value.

I would have to disagree with this. The allowances are personal and can't be shared amongst the children. The tax is owed against what is received (Capital Acquisitions Tax), not given (death taxes in some other countries).