Probate and tax liability

gabbo is coming

Hi

Quick question for you all

Do you pay CAT on the entire probate amount over the threshold in one go or as you receive the proceeds?

coylemj

Can you clarify what you mean by 'as you receive the proceeds'? Typically, an executor waits until the issue of the Grant of Probate and then they distribute the assets.

gabbo is coming

Hi

Grant of probate in April. 1 house sold, proceeds divided in Oct. Summer housr going thru sale process, yet to be divided

LawBoy2018

https://www.boards.ie/discussion/comment/119869583#Comment_119869583

CAT returns should be completed annually.

gabbo is coming

And declare what has been received to date only?

LawBoy2018

https://www.boards.ie/discussion/comment/119870762#Comment_119870762

Yes exactly.

chunkylover4

No, that is not correct. From revenue:

Valuation date

The valuation date is the date on which the value of the property and assets is established.

It determines which date the tax is payable and your CAT returns are due to be filed. Where the valuation date is:

• between 1 January and 31 August, the pay and file deadline is 31 October in that year
• between 1 September and 31 December, the pay & file deadline is 31 October in the following year.

Tow

https://www.boards.ie/discussion/comment/119875897#Comment_119875897

Revenue do not appear to hold people to that rule, once they are not taking the Mick.

LawBoy2018

In this instance, the valuation date will likely be when the proceeds of the sale are distributed. *not advice*

chunkylover4

https://www.boards.ie/discussion/comment/119875910#Comment_119875910

Revenue frequently do hold people to the obligation but in fairness often it won't have a significant impact such to justify taking action.

coylemj

https://www.boards.ie/discussion/comment/119876905#Comment_119876905

*Not a copy & paste from the Revenue website*

8.2 Valuation date of an inheritance

In the case of property transferring from a deceased disponer, the valuation date is typically later than the date of the inheritance (date of death) and in most cases is the date of the grant of probate (or the date of the grant of administration for an intestacy). In certain circumstances, however, a benefit does not form part of the estate of the disponer but is acquired by the beneficiary immediately on the disponer’s death or on the ending of an intervening life interest.

8.2.1 Benefit acquired as part of the administration of an estate

Section 30(4), which is relevant for most inheritances, determines the valuation date in the case of the administration of an estate. The valuation date in these circumstances is the earliest of the following three dates:

the date on which a personal representative is entitled to retain assets for the benefit of a successor;

the date on which an asset is retained; or

the date of delivery of assets, payment etc. to the successor

https://www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part08.pdf