Date of valuation of CAT on inheritances

A Shropshire Lad

I am wondering when does the valuation of a inheritance take place for the purposes of Capital Aquisitions Tax ? Would it be the date of the death of a disponer or the date probate was granted?

Victor

As I understand it, it is the date of the death. It is the only date with (relative) certainty and prevents people availing of the assets while delaying any liability. However, I presume there are also rules on when the CAT payment is due, to prevent undue hardship.

A Shropshire Lad

Victor wrote: »

As I understand it, it is the date of the death. It is the only date with (relative) certainty and prevents people availing of the assets while delaying any liability. However, I presume there are also rules on when the CAT payment is due, to prevent undue hardship.

Yes I would have thought its the date of death too

I premume though its possible to delay liability by simply not tranferring assets. Lets assume a person dies and their adult children remain in the property for years, if title was never transfered then they would never be liable for any tax. And the dead dont pay tax (I assume)

Stanford

https://www.revenue.ie/en/gains-gifts-and-inheritance/valuation-date-and-the-value-of-certain-benefits/what-is-the-valuation-date.aspx

tricky D

It is indeed date of death.

You can not delay or avoid the liability in the ways you describe and the tax man is wise to pretty much every evasion scheme and will get their dues. Best to forget about any such notions and any messing with title sounds very unwise. Even though you might not have received funds yet, you still have to do a tax return on time using best figures available and if you can not cover it you let Revenue know and they will not penalise you. Note: this year's return should have been in a few days ago so expect a 10% penalty if late. You might also have to do another return the following year if a full and proper assessment was not available for the first return eg. didn't have accurate figures or some assets' value were variable until cashed in, like shares.

brian_t

tricky D wrote: »

Note: this year's return should have been in a few days ago so expect a 10% penalty if late.

Deadline is Wednesday, 14 November 2018 if using ROS Online.

nompere

tricky D wrote: »

It is indeed date of death.

You can not delay or avoid the liability in the ways you describe and the tax man is wise to pretty much every evasion scheme and will get their dues. Best to forget about any such notions and any messing with title sounds very unwise. Even though you might not have received funds yet, you still have to do a tax return on time using best figures available and if you can not cover it you let Revenue know and they will not penalise you. Note: this year's return should have been in a few days ago so expect a 10% penalty if late. You might also have to do another return the following year if a full and proper assessment was not available for the first return eg. didn't have accurate figures or some assets' value were variable until cashed in, like shares.

The date of death is rarely the valuation date. Stanford posted the link further up the page. This is what Revenue say in that link:

What is the valuation date?

The valuation date is the date on which the market value of an inheritance is established. The market value is the best price you would get if you sold the item on the open market.


The valuation date for an inheritance is the earliest of these dates:

the date the executor or administrator can receive the inheritance to give it to you
the date the executor or administrator actually receives the inheritance to give it to you
the date the executor or administrator gives the inheritance to you.


In general, the valuation date is the date of the grant of probate. The date of the inheritance is almost always the date of death.

brian_t

brian_t wrote: »

Deadline is Wednesday, 14 November 2018 if using ROS Online.

For 2017.