CAT on sale of an inherited house. Can I offset costs against it?

IsleOfMan

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I have sold a property that I part inherited recently. There will be CAT to pay. Am I right in thinking that this tax is paid based on a simple mathematical equation.
Let's say I inherit €300k. I am allowed €225k allowance. So I pay tax on the €75k balance.
Can I offset anything against this tax? When I am left with my inheritance after I pay this tax is it likely that the Revenue will follow up and ask me what I have done with the balance?
 
If the Executor sells the house and pays you the money, the CAT calculation should be very simple.

If the Executor conveys the house to you, you pay CAT on the value of the house.

If you sell it later, you will be subject to CGT if it was not your residence. The costs of selling can be offset against CGT.

If the house is left to you, I don't know if you can ask the Executor to sell it and give you the proceeds.
 
If the Executor sells the house and pays you the money, the CAT calculation should be very simple.

In my case the executor sold the house and distributed the proceeds but held back approximately €45k to pay,
Solicitors costs in selling the house.
Solicitor's costs for probate work.
Auctioneers costs.
Out of pocket expenses for executor.

Included in the above €45k he also held back circa €15k to pay CAT on the retained €45k.

This looks to me then that he was not able to offset any of the above costs at all but had to pay full CAT on the €45k held back.

If the above listed costs amounted to €30k should the CAT tax only be calculated on the remaining €15k witheld @ 33% leaving approximately a further €10k to be distributed to the beneficiaries?
 
Awwwwww jeez!!

CAT and CGT are 2 different taxes.

Based on the limited info you've given it's impossible to speculate on how much CAT was payable, except that it would appear to be the amount the solicitor has held back...!
 
Awwwwww jeez!!

CAT and CGT are 2 different taxes.

Based on the limited info you've given it's impossible to speculate on how much CAT was payable, except that it would appear to be the amount the solicitor has held back...!

Total Estate. c€1.million. Beneficiaries 3. Each received c€320k. Each will pay CAT on their inheritance after allowances. €45k held back by solicitor as per above. Is all of this €45k subject to CAT or can the estate offset €30k in costs against this tax?
 
Nope, you're missing the point - the tax he's holding back is probably CGT, not CAT, or possibly both. Assuming there's a gap in time between when the property was valued for probate, and when the disposal took place, there may be a CGT liability for the estate to pay on the increase in value...
Also possibly additional CAT, since the benefit being received has gone up from what was originally estimated as the property value has increased (depends on when the valuation date for CAT purposes is).
 
Nope, you're missing the point - the tax he's holding back is probably CGT, not CAT, or possibly both. Assuming there's a gap in time between when the property was valued for probate, and when the disposal took place, there may be a CGT liability for the estate to pay on the increase in value...
Also possibly additional CAT, since the benefit being received has gone up from what was originally estimated as the property value has increased (depends on when the valuation date for CAT purposes is).

That's interesting. We had to put a value on the house for probate purposes. It was a best guess. It took about 3 months to get probate and a further 2 months to sell the house. In the 5 month period the house increased from our best guess valuation by €55k. So this €55k in now subject to CGT. Can any off the same €30k costs be offset against this CGT?
 
That's interesting. We had to put a value on the house for probate purposes. It was a best guess. It took about 3 months to get probate and a further 2 months to sell the house. In the 5 month period the house increased from our best guess valuation by €55k. So this €55k in now subject to CGT. Can any off the same €30k costs be offset against this CGT?

You can't use costs twice!!
 
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