Inheritance Tax

chrisfroome

I need to pay inheritance tax this year due to my father passing away. A friend of mine advised me to seek a tax advisor who can help reduce the bill. Would this be beneficial or is the interitance tax bill what it is and you need to pay it regardless? Any advise would be great thanks

Geuze

Impossible to answer based on the limited info provided.

Business relief, agricultural relief, dwelling House relief, group A threshold of €335,000, amount you inherited. These and more could be relevant if you can give more information on the inheritance you received.

chrisfroome

I will leave a few more details. I do not know whether this helps. The valuer based the house value at €600k, I received €168,000 in between shares & cash from my father. I do not have the totals of what exactly came from the shares and the cash. The tax threshold at the time he died in 2018 was €315,000. I also own another house which is valued about €300,000. I have tried to sell this beforehand and the sale fell through so I am looking to sell it again this year. Altogether the Revenue want €153,000 +. 

If I am honest with you, I was never pursued by the Revenue until I brought it up with them last year. I had a lot on my plate after my fathers death with having a lot of expenses after his death etc and with Covid forgot about this bloody tax. There is interest penalties but this is another thing.

This is a brief summary of what I have received. Anything else please ask

Allinall

Your friend was correct.

Seek out a tax advisor. At worst, it worst it will cost you their fees.

If you don't, it could cost you an awful lot more.

Geuze

You inherited 768k in 2018.

The CAT limit was 315k in 2018.

So approx 453k subject to CAT, assuming the lifetime allowance not used already.

Was CAT 33% in 2018? I think so.

So approx 150k CAT.

The calculations look correct.

The only relief I can think of is the dwelling house relief.

Other than that, I can't think of anything.

A tax advisor might know more.

The dwelling house relief is unlikely to apply as the OP says he owns another property. If that was owned at the time of inheritance then there is no dwelling house relief available.

OP the rough calculation provided above by Geuze is a good guide. It looks like you are facing a €150k CAT liability.

There are certain circumstances where Revenue will allow CAT to be paid over 5 years. It would be worth enquiring with them if this is applicable to you.