Capital Gains Tax on a house sold as part of an estate

jasonb

Hi all...

Not sure if this is the right forum, but I'm hoping someone can help me.

I'm the executor of my late Father's will, and I recently sold his house,with the money from it going to a few beneficiaries.

I did his Probate etc. on my own, but had a solicitor for the sale of the house. They advised me that as the house was sold for a little more than it was valued for, there may be some CGT to be paid, and I'll need to do a return. Even if no tax is owed, they said I still need to do a CGT return so that the revenue are happy with the sale.

However, I can't find out how to do the return. Any forms I find online for CGT assume that you're either a company or an individual who has registered for tax and has a Tax number. I'm just a PAYE worker, and I don't even know if it should be filed under my PPS or my Dad's, as I won't be paying any CGT owed, the estate will be.

Any ideas of where to start with this? The solicitor suggested contacting an accountant, but I don't know any, and would rather not spend more money if I can figure out how to do it myself. I tried ringing the Revenue today, but got a message saying they were too busy and ring again later, and then their phone lines close at 1:30.

Thanks in advance...

PresumingEd

File a CG1 form and use your dad's PPSN

Atlantic Dawn

You each need to fill in an IT38 form if the amount you are receiving exceeds 80% of the threshold for that group threshold that you have received the money from, or if the addition of a previous amount in that group threshold makes the total exceed 80%. More information here:

https://www.revenue.ie/en/gains-gifts-and-inheritance/completing-your-gift-or-inheritance-tax-return-it38/index.aspx

Here's the groups and their thresholds, these are lifetime amounts from each group:

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-groups-and-group-thresholds.aspx

Xander10

https://www.boards.ie/discussion/comment/117984972#Comment_117984972

That's for CAT not CGT.

The estate needs to obtain a tax reference number and file the CGT through same.

jasonb

Thanks for your replies.

So how do I obtain a Tax reference number for the estate, if that's the first step?

Xander10

https://www.boards.ie/discussion/comment/117985012#Comment_117985012

Contact revenue. They sometimes allow you file under the deceased person's tax number in straightforward cases but I have found them not very willing in recent times

jasonb

Thanks again, I'll try them on the phone again tomorrow!

xeresod

Do make sure to contact them sooner rather than later, especially if a new tax number needs to be setup for the estate - if house was sold this year the tax must be paid before 15 December although the return isn't due until 31/10/2022

(If sold in a prior year, interest/penalties can apply so you'll want to mitigate those by paying asap!)

jasonb

Thanks. House sold a couple of days ago. Will try ringing them tomorrow.

jasonb

Quick update... By ringing the Revenue at exactly 9:30 this morning, I managed to get through in 15 mins.

Their advice is that each of the 5 beneficiaries need to do their own CGT return, using their own PPS Number, for a sale of a share of a residential property. There won't be any CGT owed, as the sale price less expenses is slightly less than the value, but even if there was a slight profit, it won't matter as each person will have a personal CGT allowance of €1,270. So no tax is due by anyone, but everyone has to do their own form.

Seems like a mess to me, I now have to advise everyone to fill out the CG1 form using the figures I give them!

And, if I'm correct, the 5 beneficiaries can't actually do the return until next year, as the current year has to end first.

xeresod

https://www.boards.ie/discussion/comment/117988053#Comment_117988053

That's the case unfortunately, Revenue are very clear on the matter that a return must be filed for the disposal of an asset even if there is no tax due.

I just got registered for CGT today to allow me to pay online and in the reply from Revenue confirming the registration, they attached a 2020 Form CG1 and said I could use that but just change the year form 2020 to 2021...personally I'll wait until the 2021 form is available in the new year - they're scanned by OCR when they're received so I'd rather not have the headache of sorting the situation if my changes are not recognised!