Capital gains tax - Personal exemption & allowable expenses.

M

mondo101

Registered User
Messages
20
Hi all, Just looking for some clarity.

The Family home has just been sold (via Probate ) after both parents have now passed away.
4 siblings receiving 4 way even split of the sale of the house.

Value of the house reported to revenue €445,000 when doing probate, sale of the house was €470,000 , so potentially €24,000 subject to CGT.

There is a personal exemption for CGT of €1270.

There are also deductable allowable expenses, ie: costs(for example , fees paid to a solicitor or estate agent when you acquired and disposed of the asset.)

I have 2 questions.

1. Is the personal exemption applicable to just one person , or are all 4 siblings allowed the exemption ? , therefore €1270 x 4 = €6350 Total.

2. Are payments made to surveyors ( BER Cert , Land registry Map ) and the fee for Grant of Probate Cert , all considered deductable allowable expenses, since these are all required in order to sell the house, along with the obvious solicitor and estate agent fee ?

Thanks in advance for any help.
 
Not sure what you mean by "sold (via probate)" - I presume you mean that the executor(s) sold the house before distributing the estate to the benficiaries


1. If the estate sold the property, the CGT is due by the estate not the beneficiaries and there is no personal allowance
2. Yes, these are allowable expenses to be deducted from the proceeds when calculating the capital gain
 
jpd said:
Not sure what you mean by "sold (via probate)" - I presume you mean that the executor(s) sold the house before distributing the estate to the benficiaries


1. If the estate sold the property, the CGT is due by the estate not the beneficiaries and there is no personal allowance
2. Yes, these are allowable expenses to be deducted from the proceeds when calculating the capital gain
Click to expand...
Hiya. thx for the reply. sorry , yes I am the executor. I sold the property as executor and will distribute evenly the estate between myself and my other 3 siblings.
So is there a personal allowance just for myself, or is there a personal allowance for all 4 of of us ?

And just regards to the allowable expenses, I know that solicitor and estate agents fees are allowable expenses as it is mentioned on revenue.ie in examples. But are the following also considered allowable expenses , payments made to surveyors ( BER Cert , Land registry Map ) and the fee for Grant of Probate Cert ? . I couldn't sell the house without paying for these up front.

thx.
 
There is no personal allowance for an estate

Yes, these are all allowable expenses
 
jpd said:
There is no personal allowance for an estate

Yes, these are all allowable expenses
Click to expand...
Hiya, thx for that .

Revenue website says "The €1270 personal exemption is restricted to individuals, A personal representative cannot claim it.
"There is no CGT due on assets that you transfer to a beneficiary in your capacity as a personal representative."

But, am I not considered a personal representative, as part of my role as an executer ? ,while also being a beneficiary ?

What happens then ?

Or does personal allowance only come into play when the owner sells ? Hence the fact that we are dealing with an estate ( Like you said !)
 
Last edited:
I am not sure where the difficulty lies - it is clear that the estate does NOT have a personal allowance

Personal allowances are what it says on the tin - allowances to be set against capital gains made by a person (a person, not a company, not an estate, not anything else except a person)
 
I feel like I’ve wandered into the twilight zone…

This thread has nothing to do with Capital Acquisitions Tax!
 
Gordon Gekko said:
I feel like I’ve wandered into the twilight zone…

This thread has nothing to do with Capital Acquisitions Tax!
Click to expand...
Hardly unusual for a thread to start on one topic and end up veering into another possibly related one. :confused:
 
Last edited:
Feemar5 said:
If you each inherit 335K or less there is no tax due.
Click to expand...
Hiya, there is definitely CGT due since the house was valued at 445,000 and sold for 470,000 so 25,000 is considered "profit" , less the deductible expenses mentioned above. and as per jpd no personal allowance deductible.
 
This thread has evolved into tax !

Is this a typo on the revenue site ?

When and how do you pay and file CGT?

This page contains the steps to pay and file CGT
www.revenue.ie www.revenue.ie

under "How to file your CGT return"
Form 1 - if you are a trust or an estate

There is no other mention of Form 1 , so is it Form CG1 or Form11 or Form 12 ?

I am a housewife and so don't work anymore, my husband is PAYE and we are jointly assessed .

Thanks again for any help
 
mondo101 said:
This thread has evolved into tax !

Is this a typo on the revenue site ?

When and how do you pay and file CGT?

This page contains the steps to pay and file CGT
www.revenue.ie www.revenue.ie

under "How to file your CGT return"
Form 1 - if you are a trust or an estate

There is no other mention of Form 1 , so is it Form CG1 or Form11 or Form 12 ?

I am a housewife and so don't work anymore, my husband is PAYE and we are jointly assessed .

Thanks again for any help
Click to expand...
Is this the Form 1you mean?
 
Last edited:
jpd said:
Do you have a Tax Registration number for the estate?
The CGT would be filed under that number

Found this https://www.revenue.ie/en/self-assessment-and-self-employment/documents/form1.pdf
Click to expand...
jpd said:
Do you have a Tax Registration number for the estate?
The CGT would be filed under that number

Found this https://www.revenue.ie/en/self-assessment-and-self-employment/documents/form1.pdf
Click to expand...
Ah ok so there was no link to Form1 on revenue.

I don't have a Tax registration number, So I've read that I'll have to apply for one in order to fill out the Form 1. The form 1 only mentions tax for the year 2021, Do I have to wait for a form, in 2022 for 2022 ? House has just been sold and would like to sort tax out Now before dividing out remaining between the other siblings.
 
This looks like a bit of a mine field as per https://www.askaboutmoney.com/threads/how-does-executor-file-cgt-return-for-the-estate.204856/

Can someone clarify that as an Executor it's form 1 I fill out and in order to keep it separate from my own tax affairs that I do the following.
Submit a form TR1 for 'estates under administration' and Revenue provided me with a tax reference number for the estate for the relevant tax return. I used this to obtain a digital certificate for the estate. and the PPS details used on the form1 are of the deceased? and the fact that the form only mentions the year 2021 ?
 
From previous link, the user Ricta ( Nov 2020 )

Almost identical to my situation except the house is now sold.

20/9/2017: requested a Tax Registration Number for CGT for the Estate under Administration of the late Mrs X.

9/10/2017: received Tax Registration Number as requested.

15/5/2018: house disposed of.

2/7/2018: CGT_A Payslip sent with cheque. Name on the Payslip: Estate of Mrs X, deceased. PPSN of the Estate, and address as c/o my address, (Executor)

27/2/2019: Form CG1 (Capital Gains Tax Return and Self-Assessment 2018) became availabe, completed and sent to Revenue. (Not CGT1, not Form1)
 
You must log in or register to reply here.
Back
Top