Capital Gains Tax on Inheritance

Athienou

New Member
Messages
1
My father passed away in 2018 and his home was willed to his 5 children.
During that time, and the process of probate,
we got the property valued by local estate agents. It was estimated to be worth between 375k and 410k.
One of my siblings decided to purchase the house at 410k and conveyance will be finalised in the coming days.
In recent days, our solicitor has informed us that we may be liable to Capital Gains Tax of approx. 11,500.
I'm unable to contact him due to present conditions. (Covid)
I can only assume, they took the lower price of the estimate, 375k, and made out, between our father's death and selling, we accumulated a capital gain of 35k. 33% of the gain is approx 11.500.
Surely this is wrong. The valuation was just an estimated price. The house remained empty since our fathers death and requires repair.
 

Jim Stafford

Frequent Poster
Messages
481
The "base cost" of the house is the valuation that was submitted on the Inland Revenue Affidavit. The form does not allow a range of values to be inserted. if the Executor sells the property then CGT will have to be paid on any capital gain.

The sensible step for your sibling to take is to wait some months and see of Covid depresses that valuation. However, if the valuation goes down you would receive less money from your share of the proceeds.

Jim Stafford
 

fidelcastro

Frequent Poster
Messages
111
The "base cost" of the house is the valuation that was submitted on the Inland Revenue Affidavit. The form does not allow a range of values to be inserted. if the Executor sells the property then CGT will have to be paid on any capital gain.

The sensible step for your sibling to take is to wait some months and see of Covid depresses that valuation. However, if the valuation goes down you would receive less money from your share of the proceeds.

Jim Stafford
We don't have Inland Revenue, at least since 1922. They are called Revenue Commissioners or Revenue for short.
 

twofor1

Frequent Poster
Messages
1,347
Surely this is wrong. The valuation was just an estimated price.
Don’t think so, whoever applied for probate would have stated an exact value on the CA24 and backed it up with a written valuation from an estate agent. If it sold above that amount CGT kicks in. Sounds like €375K was the probate valuation.

We had two agents value a house for probate, both said the same, hopefully it will get €xxxx, both also said if a good few were interested it could get more and gave probate valuations for €50K above that. For probate it seems it is usually best to go for the higher side of reasonable.

If contracts are not yet signed, could the sale fall through……………….
 

AlbacoreA

Frequent Poster
Messages
3,397
....
I can only assume, they took the lower price of the estimate, 375k, and made out, between our father's death and selling, we accumulated a capital gain of 35k. 33% of the gain is approx 11.500.
Surely this is wrong. The valuation was just an estimated price. The house remained empty since our fathers death and requires repair.
I'm open to correction. But my understanding is the the valuation is set when the person passes on. For inheritance tax, it becomes due in the same tax year probate is completed. I assume CGT is the same. Seems a bit daft and you can be caught out in a failing market. But that seems how it works.
 
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