CAT Tax Question

Degag · 23-11-2022 07:06PM #1

Hi,

I've recently been gifted a site from a relative. It was ongoing for a couple years through solicitors amicably but finally sorted.

The site is valued at slightly more than the threshold that can be given to me tax free so technically i would owe CAT on the difference. When i take things like solicitor fees, valuations, stamp duty into account though, it exceeds the difference relatively significantly.

Do i have any grounds not to pay CAT based on this? What is my best route to query this? Looking at Revenue it looks like i need to fill out a CAT IT38 form maybe?

Any advice appreciated, cheers.

23-11-2022 07:19PM

https://www.boards.ie/discussion/2058273033/cat-tax-question

Cost you incurred like stamp duty should be deductible

23-11-2022 07:38PM

Is stamp duty deductible for CAT?

In the case of gifts, in arriving at the taxable value, legal costs, Stamp Duty and any consideration given by the donee are allowed as deductions.

Above from revenue

Degag · 23-11-2022 08:23PM

https://www.boards.ie/discussion/comment/119912476#Comment_119912476

https://www.boards.ie/discussion/comment/119912543#Comment_119912543

Cool, that would make any payment i'd have to make fairly negligible.

What would you think would be my next steps.... just give Revenue a call maybe?

namenotavailablE · 23-11-2022 08:33PM

You may already have taken the following into account:

There's a €3000 'small gift exemption' for gifted items which reduces the taxable value of the land. https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/small-gift-exemption/index.aspx
If your relative paid CGT on the gift, you can claim a credit for that against your CAT. https://www.revenue.ie/en/gains-gifts-and-inheritance/credits-you-can-claim-against-cat/credit-for-capital-gains-tax-cgt.aspx

CAT Tax Question

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