CGT and CAT due?

clint_silver

Parent makes an investment, sake of maths, buys a property for 100k #

10 years later property worth 500k, if property was to be sold CGT is now due at going rate. Fair enough.

3 questions.

1. Parent dies, is there CGT due from the estate on that investment property and any asset valuation is less that?
2. If not, Parent dies and child inherits the 500k investment and CAT is due at going rate (value of asset minus 335k allowance and some other expenses) , if child disposes of the property do they have any inherited CGT from the original investment as well or does their calculated CGT only apply from the time they inherited the property?
3. Parent gifts the investment property to child, again, CAT rules fall into place, fair enough, but again is their any of CGT that the parent would have had to pay?

Ive read revenues rules and Im not finding them clear. thanks

adrianw

1. there is no CGT on death. So any CGT effectively does with the parent.
2. Again, CGT does with parent.
3. Based on example the parent would have a CGT liability but Revenue allow a credit for the CGT against the child’s CAT - same event relief. So in the example. The parent would have a CGT liability but the child would have no CAT to pay.

obviously the above is high level based on the info provided.

Chuld would still need to file an IT38 but there would be no liability.